1. Jack, a sole proprietor, runs a small interest business out of his house selling vintage baseball memorabilia, including baseball cards, autographs and apparel, through websites like Ebay.com. He takes appropriate precautions to ensure the authenticity of each item he sells and his business has steadily increased over the last few years. Nonetheless, he is concerned about forgeries given their prevalence in the memorabilia industry. Up until this point Jack has taken no steps to avail himself of the protection of his state's business corporation laws and he is now worried that future business dealings may expose his family's personal assets, including his possessions and personal investments, to his business' creditors. Jack seeks your advice to help limit his personal liability and protect his personal assets from any future corporate creditors. In addition to increasing his memorabilia authentication procedures, Jack plans on incorporating his business under the laws of his state and would like to know what steps he needs to take in running his business to ensure that he is not personally liable for debts and liabilities of his company