Limited liability is a very good reason to incorporate, even if it costs you a bit!<p>Luckily for the OP he is likely in a relatively safe position. If his app store money fails, he likely has the talent to quickly jump into a development job somewhere else, and not have any capital tied up. So long as he keeps well away from debt, incorporation isn't a big deal. However, as he stated he wants to make more, which tends to incur risk-taking, which limited liability is ideal for.<p>I've seen several horror stories of genuine hard-working people lose almost everything because they were fully liable. Yet I've seen some very lazy, non-talented people lose virtually nothing because they incorporated. I know of one guy who lost hundreds of thousands, and still managed to retain control of his business after the banks stepped in. They now own ~40% of his company, but he's still earning the same wage.