Anecdata: the well-developed legal field is the prime reason why my corporate attorney always pushes his clients to incorporate in Delaware. He and his firm know what to expect throughout the process, and can offer much more reliable advice than when you incorporate elsewhere or in your home state (even California).

Delaware residents certainly have a favorable tax situation, with zero sales tax and very low property taxes, but that's mostly because they get tons of income from the franchise taxes applied to corporations registering there.

And if you're a first-time founder getting your first Delaware franchise tax bill, you're not going to consider the process favorable by any means.