The LDS Church does have its own state and that is Utah. Of course anyone can live there, but speaking from experience, if you want to own a business there and make a living at it, you'd be a lot better off if you have some connection to the LDS. They didn't just start some cities there, Salt Lake City is the international headquarters of the Mormon Church and its building, holdings, etc. dominate the downtown landscape and beyond.

Times may be changing there, too, though. Wonder of wonders, I was really pleasantly surprised to read the following (FULL ARTICLE):

Thousands in Salt Lake City protest LDS stance on same-sex marriage
By Peggy Fletcher Stack and Jessica Ravitz
The Salt Lake Tribune

Opponents of a measure that banned gay marriage in California took their outrage to the spiritual hub of Mormonism on Friday.
    More than 3,000 people swarmed downtown Salt Lake City to march past the LDS temple and church headquarters, protesting Mormon involvement in the campaign for California's Proposition 8. The measure, which defined marriage as exclusively between a man and a woman, passed this week.
    A sea of signs in City Creek Park, where the march began, screamed out messages including, "I didn't vote on your marriage," "Mormons once persecuted . . . Now persecutors," and "Jesus said love everyone." Others read, "Proud of my two moms" and "Protect traditional marriage. Ban divorce."