You can form a U.S. business entity in any state. Your choice should be based upon your type of business and long-term goals, as well as the advice of a tax professional. You do not need a physical presence in your state of formation.
For instance, Delaware and Nevada are popular options for entity formations, since the legal environment in these states is generally seen as business-friendly. Your tax advisors should weigh in regarding whether any particular state is better from a tax perspective, and you should also consider the formation costs and annual fees in each state.
You may, however, want to form your business in your primary jurisdiction of operation, particularly if your business is heavily regulated or needs to register to do business in that jurisdiction.
We can help you assess which formation jurisdiction will be most advantageous given your particular business needs.