If you don’t like getting sued, incorporation can save you a great deal of aggravation.
First of all, let me say that I’m not a lawyer, I don’t pretend to be a lawyer, and I have no intention of becoming a lawyer (much to the disappointment of my mother). And “a fool is his own lawyer…”
But here goes anyway.
A corporation shields its owners (i.e. you) from certain legal damages. If someone doesn’t like your blog or gets sick from your mail-order vitamins, or considers your self-published book to be libelous, they can sue you. If you’re organized as a corporation, then only your business is at risk. But if you’re not organized as a corporation, then your business and your personal assets are both at risk.
The fact is, if you’re not organized as a corporation, then you – the owner – can more easily be held personally responsible for the debts of your business.
Incorporation will protect you from these dangers. It’s very easy to incorporate – you can go to a website like mycorporation.com.
Needless to say, incorporation costs money. Don’t incur the cost of incorporating unless you are committed to building up your business.