Of equal importance to selecting the form of your business is the reality of how you conduct your business.  If you incorporate or establish an LLC, then, for Heavens sake, conduct your business as a business.  Don't buy your groceries from the "company" bank account; or send out work or billing as "John Doe".  Maintain business records; have formal operating documents; have corporate "stockholders meetings and record the Minutes".   Keep your personal life and your business life distinctly separate.  Failing to act like a business is the surest way to lose the protection afforded by an LLC or corporation.  It may be more trouble and a little more expense, but I sure don't want to lose my home if I happen to make a costly mistake.