Ben D, N CA - 10/6/2018 09:03 Some time back I did some digging into this topic with some people (attorney friend and an Oregon accountant) I trust, and the consensus was there was no liability protection. As mentioned, it's mostly impossible for a very small business to be separate enough that the other, or individual would be protected from a liability suit. Now, I have maintained an S-corp in Oregon. Not anything to do with liability, but the state boundary here is sort of an arbitrary line through the middle of the valley. I do enough work in Oregon or with companies based in Oregon that there are some reasons to have an Oregon entity handle some of that, even if it is just a pass through. I also own some land with another partnership in Oregon, and the cost of maintaining separate stuff for those two little entities is always surprising. It's worth it and I like how clean it makes the accounting to have stuff separate, but if I was only doing business in one state I sure wouldn't do it. Oh, and the general consensus was regarding liability... money was better spent to up the umbrella coverage vs. separate entity.