While you are not required to form your company in the state were you are physically located it is usually the choice for many companies. Some things to take into consideration
are, state taxes, annual report
filing requirements and residency requirements. Further, if you decide to organize in a state other than where you reside you may be required to file an authority to conduct business into your home state if you are transacting business there. For instance, if you organize your company in DE but are located in another state you will more than likely have to file an authority to conduct business in your home state in order to open a bank account and comply with tax requirements. So, you will be paying to keep the company active in both states when you may only be conducting business in your home state.
While the benefits (lower formation costs, no/low state taxes, low annual registration fees) of organizing in another state may seem attractive, the costs of operating your company from another state may outweigh them. Often it is the best decision to open your company in the state where you reside unless otherwise advised by an attorney or accountant.