I'd like to comment on this :

And, it protects your personal assets should something happen in the line of business, and someone wants to sue the corporation (this isn't fool proof, ask the lawyer about the details).

It just happend to be - that I was looking into this matter as I want to make my own firm/company.

While there are obvious differences between USA and Serbia (where I live) this is what I found out (actualy most of knowledge came from some USA specific books):

Unlimited liability - basicly you are the company, and you are solely responcible with your own property (house, car, wife, children, just kidding :)

Limited liability - like INC and stuff. You are not responcible with your whole property

But as allways in life there are few catchs. BTW. All this is Serbia specific, but should be about same in USA. It's much cheaper to found and run first one. It's also easier from book keeping point of view. And easier to close it. The second in more expencive, and more complicated to run, canot close it easily ...etc.

O and, I could add that it is seems much easier to sue someone in USA than here :) Atleast from the movies and what others told me - I still havent been to USA.

Also, in the case of limited liability - dont think that you are 100% secured. As you will be the CEO, worker ..etc. In case of problem, you are going to be responcible person - so you can still be sued.

This came from USA specific document. Author wrote about starting your own web design business (very similar) in USA. He recommended unlimited liability for starters. And a good lawyer. So that he would write you contract template that you would use with clients, give recomendations ...etc
He also mentioned that, generaly you couldnt be sued for more than what client paid you - especialy in that business.

The doc that I'm talking about is : "The webmasters BUSINESS Masters Course" - sitesell.com - by Mark Frank; You might want to take a look as it's USA specific and is good enough (best I could find actualy) on that matter.