johntabita - 5:35 pm on Nov 29, 2005 (gmt 0)

Incorporating will keep your personal assets protected in the event of a lawsuit. You really have to access the likelihood of someone suing you to determine if it's necsessary. You don't have to use an attorney; there are plenty of online incorporation services available.

Obtaining a business license is typically a city ordinance to comply with. If you're renting retail or office space, it's a must. If you're operating out-of-home, you can get away without one. So long as you're not seeing clients or receiving a high volume of deliveries, you won't attract attention. But it's usually not that expensive, and some cities do not even charge a fee. So IMO, it's worth obtaining one to be legal.

There are some different ramifications, tax-wise, between an LLC, S-Corp and a C-Corp, so be sure to talk to a CPA.