Best States For Web-Based Startups

                                                                                                                                                                         

In the current economic and financial mess, which is the best state
for incorporating a new web based business and why?  Based on my
own research, it would seem that Nevada, Wyoming, Delaware,
Florida, Texas, South Dakota, Nebraska, Utah,Virginia, Washington,
Montana, not necessarily in that order, would be better, yet so many
start-ups pop up in California, one of the worst states for that purpose.
Even if you live in California, being web based allows one to work
from California and be incorporated in a better state. So what is the
reason, if any?  Does it have anything to do with finding Venture Capital,
or maybe because they do not expect to be profitable for a while?
Please share what you know about this issue and maybe post some links
for further research.
------------------------------------------------------------