Thanks to Small Biz Survival blog I saw an excellent article from Entrepreneur.com entitled 75 Secrets to Startup. A portion of the article discusses whether to form a corporation or not. It also includes information on where to form your corporation. Many Web site articles and companies will tout Delaware or Nevada corporations. But the reality is most small businesses are probably better off incorporating in their own state.
For more information you may want to check out my blog post "Where Should You Incorporate Your Iowa Small Business?"