Definitely set up either an LLC or corporation to provide protection from business-related debts or liablility. There is, in terms of protection, little to choose between an LLC or corporation, and for tax purposes, since you'd most likely want a "pass through" entity (though confirm this with a tax advisor), you could do either an LLC taxed as a partnership or an S-corporation. The above said, most small businesses (self  included) find an LLC simpler and more straightforward, with less paperwork formalities and requirements, than a corporation, so that's probably the better way to go.