When Joe and Sue went into business, they decided to incorporate. The reason: They wanted to receive the legal benefits available only to a corporation or a limited liability company (LLC) and not to a partnership or sole proprietorship. By incorporating, they created a separate legal entity that protected them from personal liability. If someone were to file a lawsuit because a business debt was unpaid, Joe and Sue wouldn’t have to worry about their own personal assets — their homes, cars and bank accounts. Only the assets of J & S Enterprises Inc. would be at risk.The same thing
