If you can't live with the S corporation restrictions, a third option is a limited liability company. The easy but expensive way is to hire an attorney to do everything for you. The lawyer will obtain the corporate kit, which includes a book of stocks, a corporate seal and a set of accounting books. Dozens of incorporating firms are listed online and can be found through any search engine. The least expensive way is to just do it yourself by contacting the secretary of state where you reside.
Many states post the fees, instructions and forms online.
Information about incorporating in California is posted at . Registering a new corporation takes a few days and costs a few hundred dollars. It is, without a doubt, a bureaucratic annoyance, and the costs aren't trivial, but they aren't high, either. Considering the protection incorporating provides, though, it could be the best and least expensive liability insurance you ever buy.