Sole proprietors are at absolute risk of liability for business debts. Incorporating generally prevents most creditors of your business from gaining access to your personal assets or forcing you to have to file personal bankruptcy in the event of a business failure.
Even if your sole proprietorship carries general liability insurance, your personal assets are at risk to the extent your employees cause damage to another individual or entity.
If you are in business with a partner, you are jointly responsible for the liabilities and/or negligence caused by your partner. Incorporating limits your personal liability created by business partners and allows you to have peace of mind.
Historically, corporations were formed because of the ease with which ownership in the company can be transferred (at whatever percentage); and because of the ease with which capital can be raised.
While the tax rates of corporations and individuals have moved closer over the years, there are still many potential tax advantages available for the owner of a corporation.
Many will attest that owning a corporation is much more impressive and instills greater confidence with those you deal with.
McGahren, Gaskill, & York prides itself on building one client at a time and can assist you or your business with virtually any legal issue. Incorporations of C-Corporations, S-Corporations and Limited Liability Companys vary on cost depending on the legal needs of each new business with an average cost of $500 plus costs.