In short when you incorporate you create another enitity.  An "imaginary person" if you will.  As president of this corp you can make decisions and guide this "entity".  The only thing a corp can't do that an individual can do is marry or vote.  If someone were to sue they would sue this entity.  It is what they call a coporate shield.  Currently in my corp I have a bank account and a vehicle.  That is the limit of the assets that they could obtain in a lawsuit.  You must maintain a seperation between the corp and yourself.  Go to your local library or book store and pick up some books on incoporating.