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I have a friend, starting a telecomunication biz (phones) .

But he started a C Corporation first, and not having yet his own biz income or jobs, still working for other phone company!

Why he not choose to see if have first clients, jobs or income, and gradually developing a corporation afterwards?

What's the diffrence?

Mr. G

Actually what your friend did is what most small business people do. And it is the right thing to do. There are a lot of reasons to incorporate. For most people the main reason they create a corporation for protection. If you a sole proprietor you are personally responsible for your business debts and liabilities. If the business tanks, you could lose your personal stuff. A corporation is in itself viewed as a separate entity under the law. If your C-Corp tanks you lose company assets, not your own personal assets.