Probably the largest signficance,for a very small business owner, between a Corporation and a sole-properitorship, is the liability protection afforded by the corporation. However, in order to keep this liability protection solid, the most important piece to maintain is proper paperwork. Without maintaining the proper corporate stucture, backed-up my minutes, annual meetingss, etc., Failure to do this may permit a entity to “pierce the corporate viel” and go after you personally. Attemtpting to play catch up with your required paperwork is not only illegal, but very diificult after the fact. It is first, and foremost important to setup a structure to ensure your compliance going forward – mark it on your calendar, use an Outlook reminder, whatever it takes to ensure that you are providing a minimum of Director and Shareholder meetings at least annually. Also be sure to keep your finances in line and major descisions should be placed in the minutes. Paperwork is the number one killer of the “corporate veil”… You can try to run the best business, by the book, however you will either invariabily not know something and screw up, or you’ll have someone else attempt to sue you over something frivelous, yet still that protection will be required. You cannot control other people, so you need to ensure you are taking the correct actions to protect yourself and the corporation from libaility at all times.