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When considering where to incorporate, look for a state that has laws that are flexible in both the creation and protection of businesses. Delaware’s General Corporation Law is known as one of the most business-friendly and advantageous laws in place today.  For example, Delaware’s laws allow companies to reduce their tax bill by allowing taxable income earned elsewhere, to become tax-exempt income in Delaware. Each state has different laws affecting corporations. To find more information about the laws that govern your state of interest, use your favorite search engine to look for your state’s particular corporation laws or business organization codes. Each state has different laws regarding the sale, ownership, and taxation of company stock. If you are looking for equity investors or wishing to sell parts of your business, look for an equity-friendly state that will save both you and investors in the long run. If you are conducting business in a state that is heavily regulated, or if you are in an industry which is prone to liability, you should look for states that are used to handling corporate law, such as Delaware. Delaware has a separate court that resolves business disputes by the use of judge, instead of jury, which many business owners prefer. Cases are often resolved more quickly in states like Delaware where judges are experienced in business matters.
Identify the legal framework for business proceedings. Look into the laws about equity sales and initial public offerings (IPO). Consider states that have a judicial system for business proceedings.