First, let’s look at the basic question at hand: Why bother with incorporation at all?
If you’re like many small business owners, right now you’re operating as a sole proprietorship. That’s probably not because you’ve chosen to, but because you don’t consider your business large or sophisticated enough to need to incorporate – or maybe you’ve never thought about it at all.
If you’re lucky, you’ll never have to pay the price for putting off that crucial next step… but that’s a very dangerous “if.”
Sole Proprietors Are Rolling the Dice
In today’s ultra-competitive and dangerously litigious business climate, you can’t afford to throw the dice with your most valuable asset. Your exposure is far greater than you may think, both personally and professionally. As a sole proprietor, regardless of the size of your business, you personally have unlimited liability if your company is sued. You could actually lose all of your personal assets.
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