As a full time freelance writer, I've set my business up as an LLC with a separate business bank account and EIN (tax ID number). Honestly, I can't tell you for certain why I did this, except that I prefer everything to be very formal and structured, as that tends to work for me. This structure reminds me that work time is work time (no matter when that is), company money is company money and that this is my job. It just helps me to keep things serious. Maybe I need that extra discipline!
I have a friend who is about to set up her business as an LLC, as she wants to purchase a home next year. I assume the paperwork and ability to show a money flow are both important for things like getting credit. I was going to sit down and write up the steps to forming an LCC, getting an EIN, and starting a business bank account, but, I realized that, other than her situation, I couldn't come up with a really solid why.
So, I'm turning to other writers: why do you or don't you have your business incorporated, under an EIN, and/or with a separate bank account?