Ebay Tip Number 32

32. Incorporate to Protect yourself from liability

Not many people get sued selling stuff on eBay, but it can happen. If you incorporate, the corporation can shield you from most lawsuits. In fact once a lawyer learn that you are incorporated and you don't keep assets in the corporation, a lot of times they will not bother suing because they know your assets are protected. There are also lots of tax benefits to incorporating even if your eBay income is fairly small.

I used a company called LegalZoom.com. They did an excellent job --very personal service and very quick. Best of all they did it right. Some of the online incorporating services are really shoddy and they don't tailor the corporation to what you are doing.