Should you incorporate your small or home business? There are a number of reasons for doing so.Separating your business from your personal finances is one of the primary benefits you will realize by incorporating your small business. If someone takes legal action against your business, you won’t lose your house in the process. In addition to liability protection, there are other benefits of incorporation, including a “credibility boost” and the ability to raise money more easily.

There are also various kinds of corporations that you’ll have to choose from:

Keep in mind that there are various forms of a corporation. Although, as for home businesses, the two common ones are Limited Liability Companies (LLCs) and S-Corporations. There are some differences in each, such as in terms of the number of shareholders, formalities and so on (in other words, you’ll need to do some research).

Check out this WalletPop article for more information on incorporating your home business.