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I was partner in a hosting company in Maryland and was living in Oregon at the time. The lawyer that did the incorporation papers knew we were doing adult stuff and didn't mention any additional concerns. Taxes on the other hand are another issue. Your taxes are going to be messy this year since you'll have to file in both states. You can't avoid that for this year even if you move it now, but I'd suggest getting some advice from your accountant prior to the end of the year in case moving, or not moving, your corp. to WA has significant tax advantages for next year. You may actually be better off incorporating in Nevada. I know that we incorporated in Delaware, even though none of us lived there.
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