First, as a business owner, you may be exposed to personal liability for activities related to your business. As such, your personal assets may also be exposed to the risk of attachment, seizure and sale. To reduce the risk of personal liability, consider creating a separate legal entity for your business.
CHOICE OF ENTITY. There are several ways you may create a separate legal entity, including, establishing a Corporation or a Limited Liability Company [LLC]. Factors involved in deciding which business formation is right for you, include, the following: is there foreign or US ownership of the business; how many owners of the business; is the business involved in international or domestic transactions; and other related issues.
If there will be any owners that are not individuals and US residents, an LLC may be a better choice, for reasons including that the flow-through tax benefits of an S-Corp will not be available to your entity if there are any non-resident owners or any owners that are not persons (for example, owners are other enitities/companies).
Remember that simply filing the Articles of Organization or Certificate of Organization with the State and paying the filing fee is not enough to maintain corporate or LLC protection. I have posted related information at www.contactmylawyer.com/corp.htm
Disclaimer: The above is provided for informational use only,is not intended to be and is not legal advice. Consult an attorney with regard to the specific details of your situation.