There are several different types of business entities, with each having its own unique advantages and disadvantages. Business entities are designed in large part to limit the exposure to liability that owners/investors/shareholders may face. They all do a good job of protecting the owners from creditors of the business, or "inside creditors". However, they are very different with respect to how they protect owners' interests in the entities from their personal creditors, or "outside creditors." A professional corporation (PC), professional limited liability company (PLLC) and limited liability limited partnership (LLP) all protect you from business liabilities except for professional services. You need to carry malpractice insurance to cover that. There are better entities to choose like an LLP to insulate yourself from your partners, if they are professionals. In any case, you need an asset protection plan to properly insulate and isolate your personal and business assets so you can keep them out of the hands of creditors.
Incorporation LLC (limited liability company) Small business taxes Business insurance Business liability Business assets Business real estate Claims to debt Real estate Business Lawsuits and disputes Starting a business Tax law Startups Starting an LLC