We incorporated day one.
Two reasons, first to lock in the company name with the state. Second reason was to protect my personnal property.
Someone can start a company next door to you with the same name if your company name is not registered at the state level. Had a problem with a local guy having nearly the same name (he used a dba, sole proprietor). He eventually went under. There are three air conditioning repair companies with essentially the same name within a 20 mile radius.
There's more bookwork, reporting, etc. but in the long run it's worth it.
