In the state of Washington, it is easy and cheap to start an LLC with basic liability insurance. I have a small software consulting operation that I use for hobby money, but I'm not sure at which point it makes sense to incorporate.
I understand that I can write off my home office, have a more "official" appearance, etc. but at which point is this "worth doing"?
Assume for the purposes of this question that it costs $200 per year to maintain an LLC and insurance. All of my work is done electronically so there are no material expenses. Leaving aside the aforementioned "official appearance" and any protection offered by insurance, how much annual gross revenue justifies incorporating into an LLC?