If I am starting a business by myself, do I still need to form an LLC or corporation?

Probably. Even if you will be the sole owner of your company, there are still a variety of reasons to operate under a legal entity structure. Among the most important is limiting your personal liability. If you properly form and manage an LLC or corporation and your company gets sued, it will be your company’s assets – as opposed to your personal assets – that are at risk in the litigation.