When a proprietorship or partnership is sued, its owners' homes and financial assets are on the line. By making a business all theirs, they assume full responsibility for every aspect of it. These simple business structures can be enticing, since personal and business assets can be easily moved, but the risks are significant. Corporations, on the other hand, are entities unto themselves. They carry their own rights and responsibilities. And while there are laws governing how you can pay yourself and how assets can move between personal and corporate possession, that which is done in the course of corporate business stays within the business. In other words, if your company is sued, only the business assets are affected. If the company is accused of malpractice, negligence or some other issue of liability, the liability remains with the corporation.