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I know there are quite a few kinds of business entities, but what is the main reason why I should form an entity for my business?

April 26, 2017Business entities entity form main quite

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I know there are quite a few kinds of business entities, but what is the main reason why I should form an entity for my business?

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Unless you form a limited liability entity for your business, in general, all of your personal assets will be exposed to the risks of your business. This includes your bank accounts, brokerage accounts, vacation home and your other property. If your business is structured as an LLC, your personal assets are protected to the maximum extent possible. In general, it is the assets of the entity that are at risk, not your personal assets. Find out more: Why Incorporate.