WHETHER TO INCORPORATE

A common problem faced by a practicing lawyer is whether to incorporate a client's business. As a practical matter, the question as to whether a business should be operated as a sole proprietorship, partnership, or corporation is limited to the closely held and relatively small firm. Large and widely owned businesses with few exceptions are incorporated. However, the decision whether to incorporate is not dictated by size alone. Sophisticated business planning is not simple; it requires consideration of personal and family relationships, of the total income picture of the businessman, and of many other facts. A checklist, while it may be helpful, can only apprise the lawyer of a few of the most obvious factors which must be analyzed.