Not really. The protection afforded by a corporation is that individuals
generally can't be held responsible for the misdeeds of the entire
organization. Individuals *can* be held personally liable for their
individual actions, within the employment regulations regarding such things
(which are generally applicable to all businesses).
If you, as a businessman, own an unincorporated company and the yokels in
engineering unleash a fatal flaw, you are *personally* liable for their
screwup as sole proprietor of the company. If you were incorporated and
the same thing happened, the most you could lose is your company. The
corporate structure is practically necessary for large businesses. The
necessity of incorporation for small businesses is considerably more
debatable.
-James Rogers
jamesr@best.com