Should I incorporate my business or stay a sole proprietor?

For most solo service providers, the more useful first move is forming an LLC rather than incorporating, because an LLC delivers liability protection with far less complexity than a corporation. Stay a plain sole proprietor only while you're testing an idea with little risk and little income — it costs nothing and is simplest. Move to an LLC once you have real clients, assets to protect, or liability exposure (clients on your property, products, contracts). Consider the S-corp tax election on top of an LLC once profits are high enough that payroll-tax savings outweigh the added cost. Full C-corporation status is rarely right for a small service business — it mainly suits companies raising venture capital or retaining large profits. The honest answer is usually a progression: sole prop, then LLC, then S-corp election when the numbers justify it.