>I'm going to be doing some side contracting work and want the release from personal liability that an LLC can offer. Do I need to form an LLC, or are there other easier avenues?
>
>I was researching forming an LLC on legalzoom, but quickly found many instances where the lack of personal attention caused problems that needed a legal remedy regardless.
>
>Factors:
>1) Not a primary source of income
>2) Ongoing, with a partner
>3) Would prefer cheap, because it is not a primary source of income

I know people suggest lawyers for this kind of thing, but honestly I've had much better luck with my accountant. The legal side for both is somewhat similar, but the tax differences can be really important. I've always had S-corps for every business I've been involved in because of those tax differences. I think it cost me $250 to incorporate (he handled filing the paperwork w/the state, getting the minute book, etc). You will also want to get a corporate checking account and checks after you've filed.

Some people may suggest E&O insurance (Errors and Omissions). I've had it for a few different businesses where I spent a lot of time at customer's sites dealing with hardware, but I haven't used it for all of my companies. You can limit your exposure by doing things like leasing equipment back to the company (the company effectively doesn't have any assets then), and as long as you keep up the corp. paperwork you're not personally liable (unless, of course, you sign contracts saying you are).