Comment by rwhitman | Hacker News Reader

Comment by rwhitman | Hacker News Reader

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I agree with this. I incorporated a business that I really didn't need to and it just ended up costing me a ton of cash I could have used, and added on countless little complications to my life which I'm still trying to untie from after having dissolved it.

If you're not dealing with other people's money (investors), and you aren't running a business that is raking in solid revenue yet or not in a really vulnerable position legally, its just not worth it...

While I see your point, if your business gets sued, you personally could be far worse off than the cost of incorporating.

                     PHILIP II OF MACEDON
  You are advised to submit without further delay, for if I 
  bring my army into Sparta, I will destroy your farms, slay
  your people, and raze your city.

                          SPARTA
  If.

Wouldn't a personal umbrella policy cover this, for a sole proprietorship?

It might cover you financially--to an extent. But they'd still be suing you, personally and not your company. As an owner/partner in a corp or LLC you have full legal separation from your company (so long as you are running it legally) and can't personally be held liable.

Well, I didn't get sued. Fortunately I'm not manufacturing pacemakers.

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