You may also be liable for the commitments of your partners. All of these forms of the corporation are complex legal entities. It is essential for you to obtain legal advice if you are thinking about forming a corporation. Most offices can provide a guide for new businesses to follow for incorporation and doing business in their state. Call or write for a copy.
Most people immediately think of incorporating in order to minimize their personal liability.
The best reason for incorporating is, in fact, the limited liability. However, there is no such thing as total insulation from liability resulting from doing business as a corporation. Record keeping and tax matters with a corporation are difficult and time-consuming tasks usually requiring the services of an accountant. You need to keep this in mind when considering operating costs for your business. Incorporating is a complex process and you should not take on the task yourself.