When choosing a business entity, you should consider: (1) the degree to which your personal assets are at risk from liabilities arising from your business; (2) how to best pursue tax advantages and avoid multiple layers of taxation; (3) the ability to attract potential investors; and (4) the costs of operating and maintaining the business entity.

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To learn more about your entity options, download our Choosing the Right Entity Structure for the Solopreneur.

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Setting up financials specific to your business is critical to ensuring your entity protects your personal assets from being at risk if something goes wrong in your business. You'll want to get an employer identification number (EIN) because it means you don’t have to give out your social security number in connection with your business. Additionally, setting up business bank accounts makes it more likely you won’t mix your personal money with your business money, adding another layer of separation and protections. 

Nothing is worse than building something and finding out someone else has copied your idea. Save yourself money and frustration by legally protecting what makes you great. There are four ways a solopreneur should think about protecting their competitive advantage:

• Create a contract between you and your customers ​

• Purchase insurance 

• Protect your online content 

• Use copyright notices on any content you share with customers & potential customers