A very common mistake among young entrepreneurs is not to incorporate but rather to run their business as a sole proprietorship. This is a mistake on several levels. First off if your business is going to grow to any size, you are going to need to have the asset protection of a corporation. A sole proprietor and his business are effectively considered the same entity. This means that any the business owner is liable for any debt incurred by the business. This means one lawsuit can wipe out a small business owner. This makes sense even if you have an affiliate marketing based business. Incorporating almost always makes sense for a small business. It represents a firewall between the business owner and the liabilities of the business, making it harder to seize the assets of the business owner for debts incurred by the business. The liability protection is just one benefit of incorporating. The new corporation can also be structured to accept outside investment if necessary. In the United States, one of the best places to incorporate is Neveda. A Nevada corporation has quite a few benefits including more privacy protection than a traditional Delaware corporation. Typically you need an registered agent who will serve as your agent in the state. Most agents will file the papers with the state and get you your articles of incorporation stamped by the state. Some agents offer a full range of virtual office services including voice mail and phone service. This means your new business is not only protected but you can have a professional business presence quickly.