Should I form a corporation for my new business?
Yes, if your business is one where:
- you’ll enter contracts for significant amounts of money;
- you sell products;
- you’re in a construction trade;
- there is a high chance of being sued; or
- you have employees.
Maybe not if you’re the only employee (see the section on protection of personal assets), you don’t have any of the characteristics listed above and it’s a home based business (i.e., no leased real estate). In that case, a limited liability company may be more appropriate.