Incorporation

[theletch1]

How many of you have incorporated? What are the pros/cons of it? If it's a good idea what's the best way to go about it?

 

[tellner]

If you're going to run a business, especially one like this, you are a fool not to incorporate. As long as you're running a sole proprietorship all of your personal assets including your home are at risk. At the very least you should run an LLC that will separate your finances from those of your business. Beyond that talk to a lawyer or at least get Nolo Press' excellent material on DIY legal matters.

As it is you're doing the equivalent of running around Baghdad with an Israeli flag painted on your chest bellowing the Star Spangled Banner.

 

[turtle]

One thing to remember is that if you incorporate, you have to run the business like a real corporation, keeping the appropriate records, having annual meetings and corporate officers, etc so that if you are ever sued, you can prove that the corporation is a legal entity and not just a shield to protect your personal assets.

I'll second the recommendation of Nolo's materials - their corporate book has a CD that provides all the forms you need to keep accurate records required to comply with being recognized as a corporate entity.