STATE LAWS because they have to do with COMMERCE.
Interestingly enough one of the bad (depending on how you look at it) states to incorporate or deal with any of this IP stuff is VIRGINIA because their State laws require that all infringement cases be tried in front of a jury. This is a nightmare seeing as the case goes on forever because the jury doesn't know the laws, the lawyers have to educate the jury with their expensive exhibits,and YOU the regular guy, would be bankrupt before you even got through with your case.
Virgina (and one other state) was trying out the Uniform Commercial Code for Intellectual Property - Which was when they were trying to homogenize the states interpretations of how folks conduct business.
Friendly states to incorporate (for IP - not necessarily taxes) are Delaware, Rhode Island, Connecticut, Massachusetts
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