stevendice:
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If you are entering this online industry as a sole proprietor is it almost a necessity to incorporate because of possible lawsuits? What have you done?
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Often the case will be that "incorporating" will not cover the owners/operators of websites from such stuff as criminal actions. Ya don't have to do much to have a "criminal action" say, on "porn" - that is easy as hell to instigate at the whim of someone.
For tax purposes, it can often be good.
If you live in, eg, the US it may be handy from the angle of civil actions simply because of the volume instigated in the US.