Me? I wouldn't touch it as a freelancer. i'm a little late on this thread too, forgive me. i'm in california, so i can't speak for the whole contry/world, but for me, it made sense to incorporate a Limited Liability Company. An LLC limits your liability to the amount you invested in the company (which for "freelance" web work, can be very small). Of course, the Company remains liable and might still consider insurance/contracts/etc, but it does limits your personal liability -- they cant come after You personally in court. It's nice to know they can't take my home, or completly ruin my life. There are distinct tax advantages to having a LLC handle the work, instead of me as an individual freelancee. Even if I personally end up doing the "work" at the end of the day, the layer of professionalism and insulation is comforting. You might be suprized what people are willing to sign to in a contract. i've explicitly stated that i have zero liability in many contracts, and watched the client happily sign. A contract can be a basis of negotiation, so put what you need to into it and go from there. i'm a big fan of the easy to understand legal advice on http://www.nolo.com. Their "Entrepreneur Bundle" was great in helping me get my own LLC company up and running. 2cents, (and thanks for humoring me), nate koechley vicksburg collective, llc