There was a recent commercial that said incorporate your small business and protect your assets. Of course they want you to send them $99.00, or some fee, at least leaving the impression with me that is your costs. Really? Maybe I missed the fine print or some other disclaimer in the commercial and maybe they said that was their fee only, but the State of Texas charges more than $99.00 just for the filing fee for a corporation. It has been my experience that a small business owner, incorporated or not, who goes to a bank for a significant loan is often required to sign a personal guarantee, so much for the total protection. Incorporation may offer some protection to the officers and shareholders if it is done properly, and creditors knowingly loan to the corporation, but discuss this with an attorney. Incorporation does not shield a corporation from its legitimate debts, it can be sued. A person in bankruptcy, may get some protection from creditors claims. A corporation that cannot pay its debts may be liquidated or reorganized in bankruptcy. Also discuss that with an attorney.
(If you want to incorporate I recommend you see a qualified attorney who will tell you what incorporation can and cannot do.)