It has been a practically unanimous truth on StackOverflow that if you work as an independent consultant, you should probably form a corporation (as seen here), to limit personal liability, supposedly to protect you in case of lawsuit.
It seems to me that developing software does not result in many lawsuits, but this is an empirical (objective [and not community wiki]) question: How likely is it that a lone software developer will be sued? Also, by whom (a disgruntled company, coworker)? Since incorporating is basically taking out insurance, the likelihood of catastrophe needs to be taken into account.
Also, aren't there standard laws covering, for example, total screw-ups with corporate data that mean that protect the lone cowboy/girl/person/coder?
