[bander7003]

One more point regarding asset and liability protection, insurance is as important and could provide better protection that an entity. I'm not dismissing entities at all, as I set them up and use them everyday. However, an entity -- regardless of type -- is not a magic wall protecting you from everything (or sometimes anything).
The articles cited above are very informative, but the devil is in the details. I could write a book on what the articles do not say. If done right, an LLC is as effective as a corporation in protecting an owner. The only differences between an S corp and a C corp are tax-related.