Travis: As far as an entity is concerned, whether that be an incorporation or LLC, is it worth forming? Why should someone form an entity versus just staying a sole proprietorship or DBA?
Jake: Really the biggest concern that most people have when they decide to form an LLC or an incorporation is liability protection. What that means is – does your personal assets become attached or can comeone get at your personal assets when you do something?
And, with a corporation or llc, you get liability protection. That means that if they sue you, they can't go after your personal assets. Your home, your car, they can only go after the assets of the business. It gives everyone a sense of security that ‘hey – they can only go after my business, my personal stuff is safe.'
That's really the main concern that most people have when making that decision. Now, there's also some tax benefits that can apply in their specific situation. When they're an S Corp, partnership. When those situations arise, I think it's best to talk to an accountant and really explain what your situation is, what your income is, where the income is coming from, and they can definitely tell you which one is better and how the benefits of being an s corporation, c corporation or llc would help them out.