When should a sole proprietor consider incorporating?

Most attorneys will tell you to incorporate early and often. But there are three common triggers that would cause you to form a legal entity, like a corporation:

- When you entering into contracts.
- When you hire employees -- even one.
- When you start moving about the marketplace on behalf of your business.

All of these things, and many other business activities, can potentially put your personal estate at risk. Remember, liability protection is one of the primary advantages of forming a legal entity for your business.

Be sure to talk with your attorney to determine when is the best time for you to change your business structure.