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Its important to set up a legal entity for your business so your personal assets are not at risk if your business gets sued. In this video, I will explain why. As entrepreneurs, were often told to think big and move fast. Thinking big is important to success, but moving too fast can often be dangerous, especially in the beginning. Many new entrepreneurs jump into their business way too quickly, overlook important details, and then they make costly financial and legal mistakes. These mistakes could seriously jeopardize the long-term success of your business. The biggest newbie mistake is not setting up a legal entity for your business. If you dont create a legal entity, the law will view your business as a sole proprietorship, if there is one owner, or a partnership, if there are two or more owners. Both a sole proprietorship and a partnership leave your personal assets exposed. If a sole proprietorship or partnership is sued, the owners personal assets, like their home, cars, bank