I have a home based business, do I have to do a limited liability corp?

Question by Lisa A: I have a home based business, do I have to do a limited liability corp?
I want to protect myself from people, but it is only a home based business.
When do you or should you incorporate your business? If I have to incorporate where is the cheapest to do it and why?
I make my own cosmetics from home.
Which is the safest to do:
Corporations
Limited Liability and so on. Which do I do?

Best answer:

Answer by Vainglorious
You do not have a limited liabilty corp if you have a sole propiertership. There are several reasons to incorporate.

Advantages
1) Risk of being sued
2) Tax benifits
3) Protection of Name

Disadvantages
1) Costly, lots of paperwork, you need a lawyer
2) Yearly fees
3) Tax benifits only come in to play if your bussiness makes alot of money

I would almost allways reccomened against it

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