Business registration is a matter of public record, as far as I'm aware. Any entity you might set up for tax purposes would need at least to have a registered public agent, and probably a public list of directors and shareholders. However, it would mean that the business you're contracting with to no longer needs to file a 1099, at least.
Yes. Having a business entity doesn't necessarily keep someone from tracking down your identity. But, depending upon how complex you want to make things (and presumably how much money you're willing to spend), you can probably obfuscate your identity from being casually revealed to everyone. Really depends what you're trying to accomplish.