I don’t need to tell you that a growing lawsuit epidemic is going on in the United States and it only appears to be getting worse. Statistics reveal that 1000′s of lawsuits are being filed each month and small business owners are prime targets. It may be a disgruntled former employee… a customer… a business competitor… a total stranger… some government agency… the list goes on.

Operating a business as a sole proprietor or general partnership provides absolutely no protection against lawsuits. You leave your personal assets wide open to risk.

Don’t get me wrong. I’m an absolute believer in small businesses. They’re great . . . they help make dreams come true for many people and they can be your path to financial freedom, independence and success. They are the back bone of our society and one of the main supports of our national economy. My father was a small business owner all of my growing up years. I’m strongly in favor of small businesses.

But, small business owners need to protect themselves. The most important step you can take to protect yourself is to operate your business through a properly formed and maintained entity like an LLC.

The LLC entity was specifically created by law to provide a layer of protection between the business and its individual owners. With our lawsuit crazed society, the number of LLC’s being formed has grown by over 90% in the past few years. The main reason is protection.