Mark-

Even more important than how you set up your business (IMO, and from advice from various sources) is your insurance coverage. And, it can take some time to get all it all in place.

I've stayed with a sole proprietorship. I'll look at LLC as time goes on. However you set it up,keep in mind that you should have professional liability insurance. Even my friends who are incorporated carry it. Just because you incorporate and have a contract doesn't mean squat, really. People can sue you.


Business interruption insurance helps if you suffer a burglary or fire, say, and have a week or so of downtime and can't fullfill a contract. If you're working out of your house, then check on your limits for computer equipment.

Professional liability for 1,000,000 or more. I'm looking at a package now that bundles this and the BI ins.

Long-term disability.

Then, one I didn't even suspect: life insurance. In case of my death, part of the insurance payment will go to pay off any debts or outstanding contracts of the company.

P.S. I hate the whole idea of insurance.

Then, of course there's healthcare. :-(