If you incorporate a new company, where should you incorporate? I keep hearing that Delaware and Nevada are the two best states to incorporate; is it true? I know that this was mentioned several times in this forums, but I want to know about this in more detail. I'd appreciate any help/information.

I heard that you have to have residency in Nevada to form a company in Nevada. Is this true? If so, how do people get around this? Also does this apply to Delaware as well?

To file in Delaware all you need is the proper forms and a check sent to the proper state agency. In Nevada you must file through an approved company. They are easy to find on the Internet and while a pain at first, they are part of the protection of privacy.