Frequently Asked Questions: Business Law
Do I need to be “incorporated?”
Many people running small businesses ask this exact question, but what they are truly asking is whether they should set up the business as a separate entity in order to limit their personal liability. In almost all cases, a business should be set up as either a limited liability company or a corporation. This primarily accomplishes two things: (1) limiting the personal liability of the owners of the business and (2) defining the relationship between the owners of the business.