Just a reminder that as a sole proprietor, there is no corporate veil.  Your are 100% personally liable for anything you do in business.  This is one of the real reasons that businesses incorporate, and possibly the most important one.  Incorporation will otherwise provide <i>more</i> headaches, not less.<p>FWIW I did business as a sole proprietor for years.  That said, it was always just me, and I was pretty careful.  My line for incorporation would probably be when I needed to start hiring.