I have an idea of a business that I'd like to start. I need to know what criteria I should use to decide whether to set up a corporation; whether it be an s-corp, LLC, and so forth. Mainly my question is under what circumstance would a person need or want to set up a corporation.

Thank you,

Mike

A corporation gives you limited liability in that if the business fails, your creditors can only come after your business assets and not yours.

So they can't come and take YOUR house, YOUR personal car, YOUR personal bank account.

Also, if someone sues you, rather your corporation, the damages will be limited to your corporation and not you personally.

The downside is it costs a bit to set up. Not too much considering what could be at stake.

It comes down to what kind of business you are doing, whether you are going to have employees, and how much general risk you will face.

If you are going to have employees, odds are it is probably better to set up a corporation.

I know if I were you, I would, I would sleep better at night knowing whatever happens in the business, I won't lose my house.