I've been selling a lot more databases lately. Should I look at incorporating? I know that it won't save me much, if any, in taxes, at my present income level. I'm just thinking it might provide more protection if someone decides I'm liable for something, especially in the future if I start selling over the Web.

What does everybody think?

If it's just you (or with a partner), consider forming a Limited Liability Company instead (if your state offers it). It offers the same protection from liability, but you don't have to file corporate papers that are required so someone can't break the corporate veil. Also, you don't have to worry about paying double taxes that can result in having a corporation because income (and losses) flow from the LLC down to your personal income tax (on your schedule C). There are other benefits as well and you can always change your status later, but (in my opinon), unless you plan to go public later, an LLC (or a Limited Partnership) is better than incorporating.

Talk to your attorney or research more on this topic before making your decision. There are many implications (especially regarding taxes) that you should consider.

That sounds like a great option, kev. I forgot to mention that I'm Canadian. I haven't heard of anything similar here.