Will a corporation actually protect your assets?  Maybe yes, maybe no.  But it’s not as simple as Legal Zoom would have you think.  Why is that?  First, if a company is involved, a lot of people will expect someone to personally guarantee the contract.  So that protection is out the window.  Furthermore, in small and mid-size businesses, the owner’s going to be intimately involved in running it; making business decisions, maybe even doing the work themselves. If you or someone you hire commits a tort, they’re coming after you individually; either outright negligence for your own act, or negligent hiring/retention/supervision/entrustment for the bad act of an employee or agent.  Another lawyer I know uses the example of the guy who had drywall company incorporated.  As my friend tells the story “the owner went out and drank his lunch, gets in the company truck, and manages to schmear a guy on a golf cart all over the road.  Of course they’re suing him, individually, he’s behind the fricking wheel driving drunk, I don’t care that it was “company” truck and “company” business.”  Bottom line:  whether you incorporate, create an LLC or whatever, get insurance.  If something goes wrong you will need it.