Incorporating your business offers a unique mix of benefits, many of which are unavailable to informal business structures such as sole proprietorships and general partnerships.

Incorporating may be the best path for you if you are looking for tax flexibility, limited liability, and the option to raise capital.

Forming a company means that, in the eyes of the law, your business is a separate entity that can do things people can do: open and maintain bank accounts, own property, sue, and, of course, be sued. In the event that someone feels particularly litigious, they would sue the company, not you

For example, if your delivery driver causes a car accident and the injured party takes legal action, they can only go after those assets you've invested in the business. However, personal assets such as personal bank and investment accounts, houses, cars, pets, etc. are protected.