[markqq]

Make an LLC. They are really easy. In most states you just file articles of organization to the secretary of state. The articles of organization really just say what you have for a name, what the address is, etc. There are many low-cost online services that will also do it for you, like LegalZoom.

Of course it depends a lot on your state.

If your business won't make any money, I'd certainly take that 1 employee down to 0 employees. Once you get the first employee, the tax hassles increase by a couple orders of magnitude. (Payroll taxes include income tax withholding, social security, state income tax withholding, state unemployment tax, just to name a few. It's a huge mess.)