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Old 03-31-2010, 02:18 PM   #4
fredr123
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Consider the question from a potential client's point of view. If you mess something up, can the client seek compensation from you?

If you are a limited company then you may not be personally liable. Without much of a track record to speak of (since you have recently incorporated) and probably few, if any, assets of value held by the corporation there is a greater risk of the client being unable to recover anything from you if things went sideways.

Similar concerns apply should you find yourself going to get a line of credit for your business. The bank will likely require you to personally guarantee the loan in order to be sure someone with some value is on the hook if things don't work out.
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