I was crusing around Chesterfield running errands and listening to the radio when I heard an advertisment for service company that helps people incorporate their small businesses, for a fee. What could happen if you don't take advantage for their assistance? According to them, you could lose everything you own!
I got bad news for all you sole proprietors with no employees. Incorporation will protect you from just about nothing if you incorporate and you're the only employee. You see, when an employee messes up and damages a customer, the customer sues the employer AND the employee. Usually, the employee has zilch so, usually, the plaintiff goes after the employer's deeper pockets.
But, if you are the only employee of the corporation you own and a customer (or anyone else) is damaged by your action, then YOU are still on the hook. Oh, the horror! What will you do? What can you do?
Answer: Buy liability insurance.
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