We have an LLC. Our first fiscal year ends at the beginning of 2014 so I'll be in a better position to tell you about tax stuff then. Even if an LLC is penetrable, me and my wife felt better about it; even if it was a false sense of security. I also feel more professional with an LLC. Having registered my name companies with the state and filed the articles of organization leaves a good taste in the mouths of the people I do business with.