In
most cases, the answer to this question is yes. In fact, the
reasons to incorporate your business if you are operating from
home are just as overwhelming as a traditional brick and mortar
business. Your personal assets are exposed to liabilities and
obligations arising from your business if you do not operate
your business using a separate legal entity. When you operate
your business from your home, it is even more difficult to create
division between your business and personal activities and assets.
This situation could actually lead to greater exposure of your
personal assets from the operation of your business when you
are doing business from home
Home
business is on the rise and is likely to continue well into
the future. Many people who operate a home business put too
little thought into an appropriate business structure. This
is a mistake that could be costly in the future.
There
are many reasons to operate a business through a separate legal
entity. For example, there can be tax benefits that cannot be
realized using a sole proprietorship. The primary overriding
reason to incorporate is to protect your personal assets from
exposure to liabilities that may occur in connection with your
business. This reason to incorporate exists whether you operate
your business at a separate location from your home or whether
you run a home-based business. In fact, I would argue that the
exposure to personal assets may be greater in a home business
for the very reason that the nature of a home business is that
your personal assets will be physically located at the same
place where your business operates. In fact, your business is
operated out of one of your biggest personal assets; your home.