Conducting your own business? Protect your ASSets!
Keep it simple. If you are conducting business, you should create an entity (Corporation, L.L.C., etc.) to protect yourself from personal liability. When done properly, only company assets can be used to satisfy debts. In other words, your personal property is not at risk. This is especially important for individuals that have investment properties and individuals that charge for services.
Once the entity has been established a few minor housekeeping items need to be tended to such as organizational documents, assignments, equity allocation, vesting of stock, fund raising, employment agreements, etc.
By ensuring your business is operated under a business entity you are protecting yourself from possible judgments, liens, and wage garnishments.
Thereafter, you have minimized your risk.