We certainly incorporated way before we got to the stage you are. For software people, the product development is quite easy. The hard part was developing the demand for the product, sales, etc. The legal aspects are just a distraction.
For ToS, contracts, etc. we use a couple of lawyers who likes to keep things down to the minimum -- under the theory that if you end up in court, the more you have written down, the more there is to argue over. For contracts that we did not get from them, we have used industry standard versions we have purchased from online resources specializing in startups.
In short, I'd not worry about things you can change later when you have the money and resources to both get better versions and also to be the target of lawsuits. But I'd get incorporated as soon as possible, because without forming a proper corporate entity, you personally are exposed to the full liability of your company activities. An excellent resource is David Rose's "The Startup Checklist" which will give you all the nuts and bolts of getting things right when starting a company.