Yes, you should essentially *always* set up and run your business through an LLC or a corporation (like an S-corp) in order to limit your personal liability. While the protection is not 100%, having an LLC or corporation means you will not personally be liable for business debt (unless personally guaranteed), breach of contract, and many other causes of action. Between an LLC and a S-corp, there is little to choose: they both offer the same protection and tax treatment. An LLC is a little more flexible and involves a little less paperwork, so it's generally a better choice, but if you set up an S-corp instead, you'd be fine.