Certain jobs are riskier than others -- for example, taking care of someone's child or pet, or working at a salon that does ear-piercing. There are always risks, and when you own a business, you have to take those risks, both high and low, into account to protect yourself from liability. The Huffington Post goes into detail regarding how you should protect yourself, and your business, from a nasty lawsuit.
Even if you don't have any assets to worry about at the moment, your personal assets could be vulnerable for the next 22 years, depending on a court judgment. Creating a formal business structure like an LLC (Limited Liability Company) or a corporation aids in separating personal from business assets, making your business its own entity and, therefore, responsible for itself.
Now, this doesn't automatically make you un-liable for things such as crimes or guaranteeing loans you cannot pay. You still won't be protected if you accidentally injure someone, or if you don't keep up with your filings and fees to the state. Nothing is a get-out-of-jail-free card, not even an LLC or corporation. The risk that you or your company with ever be charged with a lawsuit is small, however it can't hurt to take small steps like establishing an LLC to decrease that risk -- fortunately, Ross Business Management can help you with this process, so contact us!