I would strongly recommend incorporating as either an LLC or a regular corporation. However, before you start filing your Articles or Incorporation or Orgnaization you should make sure you have a marketable idea and have a good idea whether you will be able to move product. See if you can line up some distributors or if you can procure some shelf space at the local supermarket. You'll be surprised at how difficult it really is. And if you can pull it off, you would be advised to figure out the best way to source it. From your kitchen? From another supplier who may be able to do it quicker and cheaper than yourself? Crunch the numbers and if the numbers look acceptable, THEN you can incorporate. I tell clients that one of the main issues to think about when incorporating is the risk/liability issue. If you're selling birthday cards and are sourcing them yourself and distributing them yourself over the internet, there might not be that much risk or liability. However, if you have substantial personal assets which you need to protect then you should incorporate. Think of a corporation as a cost-effective insurance policy. Now, with regards to the sauce you would like to sell, I can see some liability or risk. E. coli, salmonella, botulism, glass particles, etc. Yes, this may be remote but there is some substantial risk which would compel a reasonably prudent person to go ahead and incorporate in order to protect the home, the cash, and whatever other personal assets you may have. For more information please take a gander at my sites at http://www.socalpatent.com/losangelesbusinessattorney.html LOS ANGELES BUSINESS LAW FIRM and http://www.ideastolegacies.com/los-angeles-business-lawyer.html LOS ANGELES BUSINESS LAW OFFICE. Message Edited by NicoleD on 06-16-2009 05:02 PM

You are starting a business which has a lot of potential liability associated with it, and possibly a lot of startup costs, too. Find and consult with a small business attorney to determine the best form of ownership for this business.  You also need to talk to an insurance broker who could help you find the right liability insurance. If someone got seriously ill or died because of your product, I doubt any form of business would totally insulate your personal assets.    I'd also strongly recommend you set up an appointment with local free resources such as SCORE or a Small Business Development center to help you get started on the right foot.

It really depends on your situation, your risk tolerance, your finances and what you will need in the long run (investors, etc). I suggest you find a CPA or Lawyer - spend a hour or two with them - that way you can explain your specific situation - might be the best money you ever spend.

Hi Sandraphil1 - Here are some addtional resources that may inform your decision: 1) Blog article on choosing the right business structure 2) Blog article on LLCs vs. S-Corps 3) Business Incorporation details on Business.gov Hope these are helpful. If you have additional questions please post them here!

You'll need to found a LLC to keep the liability away from your personal assets. You can simply use the LLC as a pass-through entity and use your own social security number if you will be running it all on your own. LegalZoom provides services to setup an LLC for people if you don't feel like doing it yourself. However, you 'will' need an LLC to remove your personal liability.