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if youre in business for yourself there are lots of good reasons to form a corporation or limited liability company you can gain all this the biggest one is to protect your personal assets if youre operating as a sole proprietor and someone brings a successful lawsuit against your company your personal assets could be at risk in a worst case scenario you could lose a lot but if your company is structured as a corporation or llc and properly managed youll have additional protection to ensure that your personal assets will be separate from your business debts its like putting a wall between your business activities and your personal property youll finally be able to sleep at night another big reason to incorporate your business or form an llc is tax flexibility corporations and llcs often enjoy tax options and potential savings that are simply unavailable to sole proprietorships heres just one example if you form a corporation and elect s-corporation status your tax advisor can he