I've rarely seen many circumstances where it wasn't a good idea to make the jump to one or another corporation type as early as possible.
I've seen too many start-ups fail due to liabilities beyond their control, or due to getting that "one bad customer" that killed their business. And in this context, even a billion-dollar company can be a bad customer if they're insisting on lengthy payment terms, issuing constraining terms and contracts, or making unrealistic demands.
Better to protect yourself from the outset. We all get into business to make money and support our families, why would anyone leave themselves unprotected?
The answer is always money. New entrepreneurs think that incorporating is something they can do later, and an expense they can find the money for later. 80% of small businesses fail in the first year, so this is seldom the case, and often times these budding businessmen find themself saddled with the business' debt, or in trouble with the IRS, which could be avoided if only they'd paid the lousy $1000 or so to get a corporate attorney and have the paperwork filed.
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