If you don't organize your business as an LLC or corporation, you can be sued for all of your personal assets - house, cars, personal bank accounts, etc. - even if the lawsuit has nothing to do with your personal affairs and only pertains to your business.
The main reason for forming your business as an LLC is to protect your family and personal assets from the risks associated with doing business (in other words to "limit liability").
You are not personally responsible for the debts and liabilities of your LLC.
When used properly, an LLC gives small business owners all of the protective advantages of a large corporation while maintaining the simplicity, flexibility, and tax benefits of a small business.
LLCs allow you to avoid "double taxation" experienced by corporations and provide flexibility for management, ownership, and reporting requirements giving you confidence and invaluable protection.
Forming as an LLC is the easiest, most cost effective way to protect yourself and your business...