Robert has operated a small CPA practice for 15 years as a sole proprietor. He owns the office space that he occupies, as well as his office furniture and professional library. He has a limited amount of working capital, and his total business assets are approximately $135,000. A $65,000 mortgage on the office space is his only liability. He has typically withdrawn any unneeded assets at the end of the year. Robert has used his personal car for business travel and charged the business for the mileage at the appropriate mileage rate provided by the IRS. Robert's practice has grown over the past 5 years so that he now forecasts $70,000 of income being earned this year. Each year, Robert has contributed small amounts to an IRA (Individual Retirement Account), but his contributions have never reached the annual limits. He has never been sued; however, Robert has recently become concerned about legal liability. He consulted an attorney friend of his, who suggested that he incorporate his business to protect himself against being sued, as well as to save money on taxes.