A lot of Sachin's article is reminiscent of Mark Cuban's Economy post:

"The one thing I know with certainty is that at no time prior to starting a company did capital gains or income tax percentages ever impact whether or not I would start a business. As any entrepreneur will gladly tell you, you have to have income before you are taxed, so how much you pay on your earnings is a good problem to have, and a better problem is how much you have to pay on capital gains. What has impacted my decision on whether or not to start a business is the amount of paperwork involved and the local, state and employer taxes involved. Its complicated and expensive to start even the smallest business in the real world."

Obviously just an anecdote, but it's amazing how much paperwork and BS is involved in setting up a simple small business.

It could definitely be easier, but --- especially if you're not fussy about structuring your equity participation --- it's not that hard. 80% of what you want beyond simple sole proprietorship (invoice/be invoiced, not losing your house) you can get online with a Delaware LLC.

I agree with Sachin but I always feel like I should chime in on threads like this to say that you shouldn't let incorporation (a) be an obstacle to getting started with your business or (b) be such a headache that you put it off until later, when you've accrued personal liability.