Unless you are incorporated, that is. However unlikely, disasters do happen. And they can cost you your business, even if you have liability insurance. If you're incorporated, though, at least your personal assets are protected. Lawyers and accountants who represent photographers generally agree that the time and expense of incorporating are worth the protection it affords.
Corporations are business entities chartered by states that are legally separate from their owners.
They may have multiple owners, who are granted legal rights including the right to limited liability and to issue shares of stock. A corporation can own property and enter into contracts under its own name, just as an individual can. The corporation does because the owners are just employees. You do not have liability in that situation, he says. That level makes it worthwhile to pay the fees, which aren't much.