[GDSOB]

You don't need to incorporate to deduct business expenses for your consulting. You are already a sole propriortorship, you may want to file a ficticous business name statement if you are doing business as another entity. Make sure your tax preparer knows what you are trying to accomplish.

LLC's are good for removing yourself from the liability of your business. However as a sole owner, there is no tax benefit.

An S-corp would be another choice. Usually as a single owner corporation. It eliminates double taxation on business earnings and provides some liability protection. Has many of the best features an LLC and a corporation. It also allows deduction of business expenses like medical insurance as an employee benefit if set up properly.