Eden, the problem with incorporating any business is that it then becomes an open book to the government and must follow the letter of the law. With todays corporate regulations, a charge of simple inciting that may carry a year sentence, can become a big hornets nest of charges creating federal charges that could exceed 10 times as much in fines and sentences. Most people form a corporation to limit liability, however that is for CIVIL reasons, to protect personal assets. It does very little to protect in a criminal range. The one thing it does do is opens the door for Federal prosecution on charges that otherwise would be a state or local issue. I would not recommend anyone incorporate an escort agency unless they are in fact ONLY escorts and not providing any illegal services. Case in point is the 2008 bust of Desert Divas in AZ, an incorporated company is forced to keep records by the trade comission and it was those records that hung alot of people. heres an archived news story.
http://current.com/15r7m4c
The need for an agency to control the contact and flow between a client and an escort is the easiest way to proove a criminal enterprise. As many have said here, If LE wants you, they have you. If LE wants to charge the pope with inciting, he is arrested, and if they want him bad enough, he is doing time. If you are going to work in this industry, weigh the facts and be sure that you are willing to make the trade. If you arent willing to pay the price, then just dont get involved. Its called taking responsibility, everyone else has to do it in their everyday lives, so thinking this is any different, is nieve at best.