Questions and Answers > Business Entity > I currently own or am starting up a business. Do I need a separate entity for my business?
I currently own or am starting up a business. Do I need a separate entity for my business?
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Yes, for a variety of reasons, perhaps the most important is protection from personal liability. There may be varying degree liability protection based on your choice of entity, but generally speaking when you form an entity, it is a legal entity or legal “person” separate from you individually. Thus, your business property and assets are separate from your personal property and assets. Recognizing the need to protect personal assets from business liabilities is one of the most important business decisions you can make.
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