You don't *need* an LLC--it is not legally required--but it is strongly recommended. Having a limited liability company will, as the term implies, limit your personal liability: it will provide considerable (not total or absolute, but a lot of) protection for your personal assets (like you house, bank account, car, etc.)  from business debts or obligations, like unpaid bills, or if someone sue the business for breach of contract. Set up an LLC with "partnership," not "corporate" tax treatement; that type of LLC is a "pass through" entity, which means there is no double taxation: profits and losses "pass through" the LLC to your own personal taxes and are simply taxed once as part of your income.