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Should I Incorporate?

By Jeremy Liem


One of the first decisions a business owner should make is whether to incorporate, and which form of incorporation is appropriate.  The main benefit of incorporation is that the individual owner is protected from the debts and liabilities of the company.  


There are many different types of business entities including sole proprietorships, partnerships, limited partnerships, limited liability partnerships, limited liability limited partnerships, limited liability companies, S corporations, C corporations, and non-profit corporations.

Your business's needs and legal restrictions will determine the type of business entity that is the best fit for you.  Remember, registering as a "DBA" does not provide your personal assets with any liability protection.  A DBA is nothing more than a legal name tag, and could possibly expose you to more personal liability than if you operated under your own name.

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