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Immediately! Companies need to make money to survive, but a business will never survive if proper risk management and controls aren't implemented. Let's look at a very basic example. Let's say a family owns a rental property. They have 2 apartments in that building and make money through the rent - expenses - incomes tax = profit. Hopefully they make more than they pay out. Some good controls to implement. Making sure they have renters that have stable income or other metrics they care about so they get the rent monthly with a high confidence. Another important thing, creating an LLC, so the building if something happens to it the worst thing likely is they lose the property. They don't lose the property and their personal assets, like the home they live in or their life savings. I've known people that have mismanaged their finances in their personal business and implemented bad controls and ultimately not just lost their business but their personal fortunes as a result of it. Don't make the same mistakes. Take controls very serious and structure your company to optimize the protection of the company and external personal assets.
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Put your company in an LLC once you’ve committed to the business. Like you’ve invested $5k, or you’re ready to sign a contract with anyone. The reason I say not on day one, suddenly there is administrative work to do that may not be worthwhile if you’re still in hobby territory.
This is very good advice.
I’d recommend always incorporate to protect your current assets and always think about finances. You can start out w an LLC (if you are a single member LLC, consider an S Corp too) with partnership tax at first before there is a total taxable income of less than 21%, then you can transition into a c corp taxation format. This also depends on your exit strategy because if you distribute cash flows to shareholders the shareholders will have to pay an additional tax on it because of double taxation.