I did one a LONG time ago, had to go through State Trooper's inspection at their main site. The guy doing the inspection was an absolute ass, EVERYTHING had to be perfect. Check with your local DMV about getting the salvage title done, they can point you in the right direction.
If you got the bike cheap enough, it's worth doing it. I rebuilt the one I was doing (picked it up for a few hundred) and ended up selling it for about $3k.