One does not need to have an incorporated status in order to have a legal business. If you’re business is a self-owned and self-operated business, you can register your business as a Sole Proprietorship. However, an incorporated business can enter into legally binding contracts, issue stock, incur debts, and perform other actions as a separate legal entity. Owners of a corporation can operate under the corporation’s name rather than their own, which allows their actions to be separated from business and personal matters. If a situation rises where they receive a lawsuit, their personal assets are protected.