LLC

As a business owner starts out, it is a good idea to establish a business plan.

It's equally important to include legal planning in your planning.

Plan on meeting with an attorney to decide whether you should set up the business as a 1) sole proprietorship with an assumed name (aka D/B/A), 2) partnership, 3) limited liability company (LLC), or 4) Corporation (Inc.).

Many business owners think that simply filing Articles of Incorporation / Organization gives them all the protections of a corporate entity, but that's not the case.

In general, Corporations and LLC's protect the owners' personal assets if they follow several rules. This is called the "corporate veil". Failing to satisfy certain requirements will allow 'piercing of the corporate veil'.