[BjoernKW]

Don't worry about the bureaucratic stuff before you have your first customer. Specifically, don't set up an LLC before a customer wants to give you money. Worst case, you'll just end up with a useless entity that does nothing but eat up time and money. I've been through that twice (both with a German UG / Ltd.-style corporation and an American Inc.)

[jetti]

Setting up an LLC is a fairly straight forward thing to do, especially with services like LegalZoom. There are direct benefits of setting this up before you do any work as you can run your business costs through the business rather then paying them on your own. When it comes to tax time you'll have business deductions rather than just spending money out of your own pocket