The costs of protecting your assets are small in relationship to the benefits. We live in a society where everybody sues everyone and lawsuits can be filed easily. Tax benefits can be gained with a financial entity. There is also ease of transfer of ownership with family members. The entity choices are Sole proprietorship, Limited liability Company, Series LLC, Corporation (C –S), General partnership, Limited partnership, Limited liability partnership and Nevada LLC/Corporation. You are much better protected if you start with a financial entity than forming one later.