A limited liability company can provide tax benefits and/or liability protection. We do not provide legal advice, contact an attorney for that. We can help you understand the tax implications of different business types. If you’re interested in forming an LLC we recommend the Nolo book “Form Your Own Limited Liability Company”. It has a lot of helpful information about registering an LLC in your state. It even includes an Operating Agreement (on tear-out pages and CD) that you can customize simply by filling in the blanks.