I actually respectfully disagree with this advice. Delaware LLC's are expensive compared to most states (I believe mine was over $300 when I filed plus have high dissolution fees should you need to dissolve it or transfer it to another state plus annual taxes) and don't really offer that much compared to other states with much lower filing fees for a business just starting out.

The main reason Delaware LLC's are so popular is that the laws in Delaware are very business-friendly. However much of this doesn't realistically apply to a business just starting out. If you're Facebook it makes sense. If you're a one-man consultancy with potential liability in the less than $1,000,000 range maybe not so much. As always, this depends on many factors.

I know the counter to this is that if you are billing $X00/hour, filing fees for an LLC aren't a significant cost of doing business. I'm just offering this opinion up because if you are just starting out you don't really want to waste any money you don't have to. I'd talk to an attorney in your state before filing.

There are a bunch of little reasons that Delaware LLCs are easier to deal with; for instance, your home state may have a little dance you have to go through with running advertisements in the newspaper, or have weird rules about SMLLCs. Mostly, though, I just know that you can get a Delaware LLC and a TIN online in a couple days by filling out a couple forms.