Which state is the best to incorporate in?
It's hard to fully answer your question without knowing your business' functionality and purpose. If you needed a specialty license, some states may be more beneficial to your cause than others.
If you are planning to open a web-based company, I would immediately suggest incorporating your business in Wyoming or Delaware. Those states are well known for their tax-leniency and business-friendly regulations. Click here to view the benefits of incorporating in these states.
Please keep in mind though, if your company plans on purchasing any assets such real estate property, or you are doing physical business operations within your home state, it may not be beneficial to incorporate in another state. I would strongly advise you to consult with your accountant to find which state would benefit your business endeavors the most.
I hope you were able to find this answer helpful.