Owning your own business is a rewarding and potentially lucrative endeavor. The freedom and sense of accomplishment of being self-employed is unmatched. However, business ownership can be a serious financial risk if you are not adequately protected. If your business is sued or if you are having financial difficulty, your personal assets such as your home, retirement, and savings may be at risk. Operating your business as a corporation or limited liability company (LLC) can significantly decrease your personal exposure.