What does it mean to incorporate your business?

My husband works as an independent contractor (service/installation of phone systems, etc) and has come across a few companies that he would like to do sub work for (such as AT&T, etc) that have told him they only sub out their work to actual businesses and if he would just come up with a comany name and incorporate it then they could use his services. Is it really that simple? Are there tax issues that have to be thought of....we really don't know if this is something we should look into doing or not.

what they are saying is they will only deal with "registered" businesses - not necessarily incorporated
to register as a business go to your local town hall and speak to the people there - you will get a tax ID - and he'll have to name his business - it can be as simple as "his name contracting"

best to speak with an accountant for several reasons -
1- taxes
2- how to set up the business - LLC, Sub S Corp ???? allot of options -
you'll need some advice and then he'll have to make a decision

actual businesses and if he would just come up with a comany name and incorporate it then they could use his services.....
--------
I would like to get a copy of the contractor
criteria that he must follow. A company
is identified by structure; proprietorship,
partnership, llc and corporation. [the
LLC was just made a legal entity in
the mid 90's].

I think what they [the clients] need
are a way to protect them from
shoddy service so they can sue
someone and it is easier to
sue an LLC or corporation than a proprietorship [cause the law requires
corp's to have agents that can accept
law suits].

the tax issues are relevant only after
netting a Mil.

but a corporation has alot of good benifits taxes is one and the best one is it protect your personal assets most company or people that will sue you can come after you personally, they can only come after the buisness that all i would never open up a buisness anymore in this world without a inc.

Check with your legal advisor and get an accountant on board as well.