Why to start a C Corporation?

Actually what your friend did is what most small business people do. And it is the right thing to do. There are a lot of reasons to incorporate. For most people the main reason they create a corporation for protection. If you a sole proprietor you are personally responsible for your business debts and liabilities. If the business tanks, you could lose your personal stuff. A corporation is in itself viewed as a separate entity under the law. If your C-Corp tanks you lose company assets, not your own personal assets.

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