Hey there. The main reason I incorporated is to give my potential customers (I am going after large enterprises) a warm and squishy feeling of being able to trust me. :)
That, and liability, and taxes, and I have big plans for Balsamiq, so I thought I might as well incorporate right away.
On a side note, its ironic that customers like doing business with a corporation more than just a guy. They think if you're a corporation, well then they know where to find you when things go down the tubes. Of course, when they finally do find you, they'll be limited in how much they can get from you because of your incorporated status.
That, and liability, and taxes, and I have big plans for Balsamiq, so I thought I might as well incorporate right away.