There are many benefits to incorporating, even if your earnings are low. While tax advantages mostly are for those who earn above the threshold amount ($157,500 for individual taxpayers and $315,000 for married taxpayers) individuals may benefit from forming an LLC for liability reasons.
There are a few protections that are generally available to consultants who incorporate:
Protection from liability. Forming an LLC, or other business entity, separates you from your business. If your company runs into creditor issues, in most cases, they cannot go after your personal assets.
Insurance. You can obtain insurance in your company's name rather than your own name. If you lose a libel case, your business assets may be at risk, but your personal are not (usually).
Protection from another member's actions. If your business has more than one member, you are personally shielded from their actions. Also, your business may be protected if another member's personal assets are at risk.
Bankruptcy. If your business needs to declare bankruptcy, your personal assets are protected.
If you need a service contract for a specific type of job, rather than a Consulting Agreement, we offer many service contracts by job type.