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How to transition from personal business to legal entity?


I have been running a small wholesale distribution business (drop ship) for the last 18 months or so. This is work I've been doing in my spare time on the side. I just place a purchase order for the goods and sell them on my website. The records and receipts are in good shape but all the money just comes and goes from my personal account.

The business is growing. There is no problem to solve. I pay taxes, take deductions, etc. Customers are happy. Still, I wonder whether I should set up a separate company? What are the pros and cons? If I should, then do I need to see a lawyer or account? What next?