Texxan,
Most of your ins. companies can provide you with the gen. liab. On the LLC, I'd advise you to talk with your accountant first. They will be able to tell you what your options are as far as setting up a corp, s.corp, LLC or just go as a sole proprietor. I spoke with mine and he said it would cost about $750 to set up a corp and wouldn't 'shield' me any liability exposures (in a courtroom setting it would be easy to hurdle). It would save me a little on taxes but then I'd have to pay an atty $750 to set up the corp. and then I'd have to submit 1/4ly statements to the IRS (again, I'd be paying an acct. for each one). Bottom line was the LLC or corp. route doesn't protect any small bus. owner from a lawsuit and the $750 up front and the extra 1/4ly acct costs just didn't seem like it was worth the small savings. Each case is different but talk to an acct before setting up anything other than a sole proprietor.