Form an LLC. An LLC, or "limited liability company," will protect you personally and your personal (i.e. non-business) assets, like your home, your car, your personal bank or investment accounts, etc. from most business-related liability, such as if sued by a landlord for not paying the business's rent, or sued by a dissatisfied client. (Most but not all: no protection is perferct). The cost to form an LLC is low, and the paperwork, etc. requirements minimal: it's well worth the cost and effort to get this liabilty protection. As part of setting up your LLC, you'll also set up a separate LLC bank account (and possibly get an LLC credit card), which will facilitate tracking, and hence deducting, business expenses.