Those starting new businesses should know that the simplest form of business is a “sole proprietorship,” which is not a legal entity and simply refers to a person who owns a business. While this popular business form is easy and inexpensive to set up, the owner of a sole proprietorship remains personally liable for all the business’s debts. A “corporation” is separate from its owner, which means that, with some exceptions, it is shielded from personal liability. The “limited liability company” (LLC), which is also protected from personal liability, is not required to adhere to corporate formalities such as annual meetings, recording meeting minutes, electing directors, and issuing stock certificates. Forming an LLC or corporation is an essential step to protect your personal assets from any liabilities of the company. To schedule a free consultation to discuss what might be right for you, contact the Pruitt Law Offices S.C. at 262-633-8301, through our website at pruittlawoffices.com, or visit us at 731 Main Street in Racine. We are your partners for professional service.