I have always understood that setting up a corporation (LLC or S Corp or C Corp) was the first thing one should do, not the last. Perhaps there are tax/revenue

I have always understood that setting up a corporation (LLC or S Corp or C Corp) was the first thing one should do, not the last. Perhaps there are tax/revenue/productivity disadvantages to corporations that I'm unaware of? Just as a trivial example of what the lack of incorporation can cause, my neighbor decided to open a dance studio, foolishly signed a 5-year lease for a space that was unrealistically expensive, and proceeded to fail. She was threatened with a lawsuit to collect the rent. Rather than declare personal bankruptcy which would drag her husband down as well, she negotiated a deal to keep paying some portion of the rent, and had to find a part-time job to raise the money. No more business, and now indentured to some sleazy landlord, all because she didn't think to form an LLC at the outset.