If you are running a small business as a sole proprietorship or partnership, then you should take a look at the Limited Liability Company, or LLC.

If you are starting a small business, you have several responsibilities. Like any other business, there are several legal aspects to owning a small business which, if not dealt with properly, may land you in the midst of lawsuits.

Incorporation is important for your business; it ensures limited liability of shareholders and ensures that personal assets cannot be seized to repay debts. Retirement plans, such as the 401k, are more easily set up with a corporation. It has become much easier to incorporate your business today, and the process involves just three basic steps.

Some states, such as Delaware and Nevada, offer special tax incentives for companies that register there. However, most of the incentives are offered to big businesses and those for small businesses are often too small to make much difference.

Is it better to incorporate in Delaware or Nevada? Are there any special requirements for selecting a corporate name? Is there a minimum amount of cash required? This is part 4 of 4 in our new series on incorporating.

What are different types of corporations? Should you form an LLC instead? What are the pros and cons? This is part 3 of 4 in our new series on incorporating.

Should you incorporate? Is it better to be a sole proprieter? What are the pros and cons? This is part 1 of 4 in our new series on incorporating.