Posted by JHyre in Ohio on November 29, 2000 at 19:37:50:
Being a sole proprietor is generally a bad idea because you have no liability shield. If an employee hits a child- or one of your mobiles burns with someone in it- you stand to be sued, maybe even lose the suit. At that point, your personal assets are subject to seizure- NOT a good thing. That’s why incorporating or organizing an LLC is a good idea for most busunesses…you then have some protection against lawsuits.
In addition, using a corporation MAY save you some serious tax dollars…really depends on your circumstances…income sources, amount, personal expenses, etc.