JackieBlue - 2:40 pm on Mar 17, 2012 (gmt 0)
Tonearm, essentially yes. It is also good if you can separate even more - avoiding signing your personal assets for business needs, etc. From a liability standpoint, you want to avoid anything that would allow a potential piercing of the "corporate veil" that protects your personal assets. However, I find this very difficult in practice as often when dealing with other businesses (leases and such) they demand a personal guaranty unless you are a fairly large company.
Regardless of the business entity format you choose it is good policy (essential) in my mind to keep separate records for your business versus personal. You cannot easily get a true picture of your business if it is intermingled with your funds. I have separate Paypal accounts for selling and buying. Occasionally I get mixed up when purchasing a non-business item and boy does it create a hassle from a bookkeeping standpoint.