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 start a lawsuit because a business debt was unpaid, they wouldn’t have to worry about their own personal assets – their homes, cars and bank accounts. Only the assets of their business, J&S Enterprises Inc., would be at risk.The same thing would be
