Hmm… I am not an CPA so take what i am about to say with that in mind.
In my view, and I know Tad and Bogdan think this weary as well, the whole world is operating under VL5. Look around. Nothing but corporations. They have better tax deals, the corporate veil, and the stock owners are protected.
Did you communicate to your accountant your plan to build a business? As a sole proprietor things are very different; you don’t have any protection against complaints, law suits, etc.
Personally I would not r operate under any circumstances unless I am a corporation. Not a partnership. Not a sole proprietor.
If you’re true to your intention to build a business, I think you should consider this as an option. Read about corporations Vs partnerships VS sole proprietorship. There is a ton of information on the web.
Take a piece of paper and – according to your needs and plans – make what is called a Ben Franklin sheet. On one side of the paper benefits, on the other side things not so good. Then you can make a decision. Ask your accountant for more entails about each if you’re unclear so you can make up your mind.
I don’t know your situation and why your accountant advised you so. He might be right according to your momentary monetary situation. It is case-by-case depending on individual financial situation and plans for the future. Your accountant knows your situation and maybe it has reasons for advising you so, and yet, I think you should communicate to him/her your plans and direction and then make a decision based on the information you receive.
When I was still in Sydney, between 1998-200, as a bran new trainer I had my own corporation. I bought an already existing name, (your accountant can advise you in case you decided this way) made sure it did not have anything attached from the past – in other words clean of any debt, etc – and I stated operating this way. This has been the case ever since. Operating only under a corporation. In Australia we are a PTy. Ltd. In the states, we are an LLC (limited liability corporation).