If you are the owner of a sole proprietorship or are involved in a business partnership, there is essentially nothing that separates you from your business. This means that all assets owned by the business are also associated with you, but so are of the liabilities.

If you own a sole proprietorship or are a partner in a business, you are personally responsible for any liabilities that the business may incur. With a partnership, even if you are not the partner who incurred the liability, you are still personally responsible in the event that the other partners are not able to pay.

In effect, a corporation acts as a barrier between its business owners and creditors.If your sole proprietorship or partnership is sued, you are being sued.If your corporation is sued, you have no part in the suit because the corporation is a separate entity from you. Your personal assets, including your home, retirement savings, cars, children's education funds, etc., are safe. There is no better way to protect everything you own and have worked hard to build than to incorporate your business.

In addition to asset protection, incorporating will provide:

Lower tax opportunities

Privacy from individuals conducting asset searches for law suit purposes

More capital raising opportunities

An array of fringe benefits such as retirement plans, deferred compensation, annuities, life insurance and medical reimbursement plans.