If you have a physical business, as in an office space or building with employees, and your customers primarily come from the community you are located, then you are probably going to want to simply incorporate in your home state. Whenever a company does business within a single state, it has to register with the state government, which means paying the necessary taxes and filling out paperwork. Of course, if it is worth it, you can incorporate in another state and register as a foreign company in your home state. It really is all a matter of determining how much money and time you stand to save, and if it is worth the extra effort.