Personal liability protection, also called the "corporate veil". A business entity such as an LLC protects owners from being personally accountable for business liabilities or debts. A sole proprietor using a (DBA) name is liable for business actions and debts.

Both LLCs and Corporations can offer personal liability protection, referred to as the "corporate veil". However, the LLC is considered a less formal business structure and can be easier to maintain, as they have less formal record keeping requirements. A Corporation (Inc) can issue shares of stock and go public, an LLC cannot.

LLC, Corporation and Nonprofit business structures offer personal liability protection, the "corporate veil". By operating under a DBA or Partnership, you are simply registering the business name, but don't get the "corporate veil" of protection.

Most business owners act as their own registered agent, however if you have an out-of-state address, or want to name an outside person or business entity as the registered agent, NFS US can appoint a registered agent on your behalf for a anual fee ($99/year).

When forming a company such as an LLC, Corporation or Nonprofit Organization, it is necessary to obtain a new EIN number. A newly formed company cannot use an old EIN number that may be attached to a previous business entity. A sole proprietor can operate using their SSN, or choose to obtain an EIN. However, using your SSN for everyday business transactions puts you at higher risk for identity theft.