---
title: Should I incorporate my business in order to limit personal liability?
description: Should I incorporate my business in order to limit personal liability?
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---

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 February 26, 2023

# Should I incorporate my business in order to limit personal liability?

![Picture of Chris Battis](https://www.legalfaq.ai/hs-fs/hubfs/battis-mug.jpg?width=50&name=battis-mug.jpg) By  [Chris Battis](https://www.legalfaq.ai/faqs/author/chris-battis)  ·   1 minute read

 Yes, incorporating your business is a recommended way to limit personal liability. Incorporating creates an independent and separate legal entity from its owners that can enter into contracts, sue and be sued in its own right. This means the owners of the corporation are not personally liable for any debts or liabilities incurred by the corporate entity, as long as they have not committed fraud or other illegal acts such as embezzlement, thus protecting their personal assets. However, it is important to note that there may be certain exceptions where a court will “pierce the corporate veil” which essentially disregards the separation between proprietor and company thereby rendering the incorporated business's shareholders personally liable for all debts owed by said business. Additionally, if you plan on doing business with another state besides your home state (i.e., foreign qualification), then you may need to register in those states prior to conducting services or selling products within them – this may require additional fees and paperwork from both parties involved in transactions across state lines. Therefore, we recommend consulting with an experienced attorney who can provide more tailored advice specific to your unique circumstances before making any decisions about whether or not to incorporate your small business for liability protection purposes

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