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Keeping your personal affairs separate from your business is more important than I can stress. By doing this, you will gauge your customers true interest in your business and your person. After all, you want to walk away from your business eventually and not have it rely on you for continued support. One way to start separating yourself is by doing some basic things such as getting a business credit card so you don't have to run transaction through your own personal account.

Keeping your personal affairs separate from your business is more important than I can stress. By doing this, you will gauge your customers true interest in your business and your person. After all, you want to walk away from your business eventually and not have it rely on you for continued support. One way to start separating yourself is by doing some basic things such as getting a business credit card so you don't have to run transaction through your own personal account.

Here are a few things you can do. Get some business cards with a logo. Start a website and direct your customers there. Get a phone number for your business so you don't have customers calling your cell phone at all hours of the night.

If you would like to just do business without actually filing any paperwork you can, technically. You would become a sole proprietorship. If there are more than one of you doing business together, you can be a partnership. If you actually want your business to become a legal separate entity then you would need to do a little leg work. If you just want to start selling something and leave yourself open for lawsuits then a sole prop is probably okay.

For complete separation from your business you must choose either an LLC or a Corporation. Either of these entity types create a separate physical entity and as long as you do things right, you can completely separate yourself from the affairs and liability of your business. All you need to do is file some paperwork with your state and apply for an EIN with the IRS.

Sole proprietorships and partnerships are exposed to many types of liabilities including but not limited to business debts and obligations that have been made to creditors, customers or ever your employees and landlords. Don't just think that you can walk away from your business obligations if you fail. You will be held personally responsible for them. Just a warning!

My recommendation to people who want to start a business is always the same, form a completely separate entity. One that will not be exposed to liability issues. Either form an LLC or a corporation, period. But that's just my opinion. Since there are several types of limited liability companies and corporations, you should definitely talk with an accountant or attorney, who have experience in forming entities, before you make the decision on which one. Both of these types are beneficial to small businessman for various reason but the primary, in my opinion, is the separation of business and personal affairs that gives you some liability protection.

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