Hi guys: I'm on the Code Project mailing list for the sake of my computer geek preppie son and not at all technologically literate. However, I may be a source of some help in this area as I am CPA & lawyer. This general area is something you should all be concerned (but not overly obsessed) about. The big key is to hook up with a good business formation attorney who can take you through the drill re. incorporation v. LLC, etc. This stuff varies by state. There are set up costs as well as annual filing fees/franchise taxes. Plus there are tax impications that need to be monitored re. paying salary/distributions to you the owner/employee. You also need to reconcile yourself to the fact that you are going to need to pay an accountant to tie up your books at least once a year for the IRS; probably quarterly as you need to report all payroll to IRS four times a year. The best thing I can say to all of you is that you should look a lawyers not as vultures, but as doctors. If you or a loved one are sick, you want the best doctor you can get, not the cheapest. And you want him to run all the tests necessary (but not any unnecessary ones). In fact you are best getting a physical every year to avoid bigger problems later. It really is the same with a good business lawyer and accountant for all you self employed entrepreneurial types out there. (As an aside, a good CPA is even more important than a good lawyer in my experience; and, I hasten to add that I do not actively practice as a CPA even though I have the ticket.....lawyers make a lot more money, at least here in Mass......hence they will likely cost you less money on an ongoing basis and prevent legal and tax problems that will cost more money for a lawyer to fix.) Hope this is of some assistance. I am a director of the American Association of Attorney-CPAs and have a huge referral network if any of you want to avail yourself of it. Best of luck to all. John Pramberg, Esq. email: johnwprambergesq@verizon.net phone: 978.462.7818