Always set up an LLC or Corporation before doing any kind of business that could involve such liabilities. The $500-$1000 it costs to do that is obviously well

Always set up an LLC or Corporation before doing any kind of business that could involve such liabilities. The $500-$1000 it costs to do that is obviously well spent money, but most people don't realize that till they're facing bankruptcy. Think of it like health insurance for your business: if you don't have it and something goes wrong, you're fucked. Then again, lots of people who could afford to pay skimp on health insurance and put themselves at risk of bankruptcy every single day, so it does take a little bit of awareness of reality.