I've looked into this some and haven't been able to convince myself that it's worth the trouble. I'm no lawyer but this is what I've come to understand:
- An LLC is a good first step at protecting yourself but it is not fool proof. Legal arguments can be made to come after you personally.
- If a part you use (like a 5 volt supply) goes bad the lawsuits have to come after you first before they go after the supply manufacturer.
- Folks always seem to find ways to misuse things in ways you hadn't thought of (this one is based on first hand knowledge).
- Things I have in mind don't have enough financial upside to offset lawsuits or even unhappy customers.
So for now I build mostly for myself.
/Mark