The core of this is financial liability. Whether that is extremely helpful, or just somewhat helpful depends on the context. I can't think of many cases where y

The core of this is financial liability. Whether that is extremely helpful, or just somewhat helpful depends on the context. I can't think of many cases where you wouldn't want to have an LLC, or Limited Company (UK), or whatever the equivalent is. Creating one can help enforce some separation too: different bank accounts, different AWS accounts, etc. This feels pretty good, unless the company is some tax dodge which also places increased transparency on some things. Whatever someone does, they can make a fair attempt at running their business professionally and it will limit significant risk and liability. This means taking boring paperwork and bureaucracy seriously. It means recognizing mistakes and fixing them before they get serious. Good companies don't generally get sued and lose. You can also seek outside advice so that you make better decisions. When you take reasonable measures these will get recognized when you are in a situation.