Excellent write up, George. Even before the "where" to incorporate question, people need to answer the "if," "when," and "why" questions (and some others).

In general, many/most "startups" don't need to incorporate until one of a handful of triggers fire, such incoming investment, upside valuation event on the horizon, tax reasons, launch to the public, especially if the project/site/app is risky in terms of liability, some others.

Like many other real options (the option to incorporate or not, then where, in this case), it's often better not to exercise them early (except for the special reasons that mean otherwise).