Final answer:
A new company should take into account tax laws and regulations, quality of infrastructure, and proximity to suppliers and customers when choosing a state to incorporate. Labor and capital costs, along with local government integrity, are also significant factors.
Step-by-step explanation:
In deciding which state to incorporate, a new company should consider various factors that impact its operation and legal obligations. Key considerations include tax laws and regulations, which can substantially affect the company's bottom line, and the quality of local infrastructure such as transportation, communications, and electrical power networks that are essential for day-to-day operations. Additionally, it is important to assess the proximity to suppliers and customers, as this can influence the logistics and distribution costs. Other notable considerations are the availability of labor and financial capital, and the integrity of the local government, which is crucial for a predictable business environment.