How do you protect what you have already saved? How do you avoid putting all your personal savings at risk? How does your spouse become more comfortable with your starting this business? Should you incorporate your business? Incorporating your business, or if applicable, forming a limited liability company (LLC), can do a lot to help.
The primary reason people incorporate is to limit their liability: They want to protect their personal assets from business risks. This item on the legal checklist deals with choosing the best legal entity to own the business. Sole proprietorships and partnerships can own businesses but do not provide the owner with the limited liability protection that incorporation does.
The incorporation process is quick and inexpensive. It is typically a cornerstone that needs to be in place when you open for business.