I incorporated Tarsnap Backup Inc. five years ago (to the day!) largely for tax paperwork purposes. By being a separate legal entity it became possible to do t

I incorporated Tarsnap Backup Inc. five years ago (to the day!) largely for tax paperwork purposes. By being a separate legal entity it became possible to do things like having Tarsnap register to collect sales taxes without having Colin register to collect sales taxes. But the company was running quite successfully as a sole proprietorship until that point. Probably more important, although I didn't realize it at the time, is that being a corporation gave Tarsnap more credibility, especially when dealing with other corporations. I saw a sharp increase in the number of large users of Tarsnap after it I incorporated it.