If your like most small business owners today, you’re probably doing business as sole proprietorship. This is a common theme among the majority of aspiring business owner. If you’re like most, you probably felt your business wasn’t sophisticated or large enough to incorporate, and probably wanted to keep it simple by electing a sole proprietorship.

Although the chances of getting sued are highly unlikely, there is a high price to pay IF you were to be sued as a sole proprietor. You see, being a sole proprietors adds serious risk to you and your family, because you personally bare the responsibility of any lawsuit. Its like having a big red target on you and your business.

If by chance you are sued by a disgruntled employee or customer, you personally have unlimited liability, and could actually lose all your personal assets. The good news is, you can protect yourself by choosing the right business entity.

Most common business entities:

• LLC

• LLP

• S-Corporation

• C-Corporation

By incorporating your business, you create a separate identity apart from yourself, thus establishing the “corporate veil.” There are a number of things to consider before incorporating. For instance, which corporate identity is right for you and your business? Where to incorporate - Nevada or Delaware?

Here are three corporate websites that can help you with the transition:

• LegalZoom.com

• Corporate.com

• NVINC.com

My personal preference is Nevada Corporate Planners, due to their extensive library of information found on their website, as well a 50-page report, not offered by the other websites. This report is also jammed packed with information, which will give you a good indication of what you need to know. You can download it here:

Conclusion

For most affiliate marketers and home based business owners on the net today, the chances of getting sued may seem pretty slim. Nevertheless, one is still throwing the dice to the wind, and it’s important that you know the risks involved by not incorporating. That extra level protection could make a world of difference to you and your families financial stability.

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