Unfortunately you need to incorporate if you want to raise venture funding. You'll also struggle to get taken seriously by good tech talent if you try to hire them as a proprietorship.
Depends. The comment you replied to has a point. I have a family business. From personal experience this is how it works in practice for most entrepreneurs.
As for funding and business strategy, it will get bit tricky because you will now have to think of different ways of financing instead of VCs. But it is nothing different than VC financing (and you get to keep 100% of your company).
