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Why Every Small Business Should be Incorporated

Every small business should be incorporated as a separate legal entity by forming either a corporation, an S corporation, or an LLC. A sole proprietorship is not a separate legal entity apart from the individual business owner and is a very dangerous business choice. As a sole proprietor, there is no limitation to your personal liability for business dealings, which means that liabilities, debts, and judgments against the business can attach to the personal assets of the sole proprietor including personal bank accounts, cars, and homes. Limitation of liability is the primary benefit of setting up a separate legal structure for your business and it is a must for every business venture.

Posted by Suren G. Adams, Adams Law Office, LLC

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