[gnu6]

It's so easy to incorporate it should always be done. I assume when someone starts working with that kind of money and has knowledgeable lawyers advising them that they'll be told to do that.

[nknight]

The point is that signing a contract for personal liability negates the incorporation.

[rprasad]

Incorporating without sufficient capital makes it almost trivial to "pierce the veil" of incorporation and go directly after the company's owners.

[gnu6]

That seems somewhat backward, because it would discourage those with limited assets from starting businesses and trying to improve their situation.