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Justthought I would repeat some commentary from my publication THE SCHEDULE C NOTEBOOK -
Ibelieve it is bad advice to tell ALL taxpayers who have a Schedule C businessto incorporate. There is no tax advicethat applies to all businesses in all situations (except don’t cheat). Thedecision to incorporate a business requires careful review of all the specificfacts and circumstances of the individual situation. And taxes are not the onlyconsideration. In a majority of cases it is not financially beneficial, eitherin the short or long term, to incorporate.
Whileincorporating will certainly reduce one's 1040 audit risk, it is very often notthe best idea for the average sole proprietorship. Incorporation can generatemuch more paperwork, recordkeeping, federal and state tax filings, costs, andgeneral all-round "agita" than it is worth. 
Forone thing, like a marriage, it may be relatively cheap to "get into"a corporation, but it can be very expensive to "get out of". 
Thereare indeed times when it is better financially to incorporate a one-personbusiness, especially when excessive health insurance and other employee benefit costs are involved. Butcertainly not in all cases.
Somesay the decision to incorporate is a “no-brainer”.  There is very little, if anything, about taxlaw that is a no-brainer – especially when it comes to business taxes. That iswhy tax professionals exist.  Thedecision to incorporate is by no means a “no-brainer”. It involves a lot ofbrain work!
TTFN