Disclaimer: IANYL, nor may I provide tax advice.

If you want to avoid all the craziness of accountants and lawyers (now), form an LLC. They are laughably easy to form. From a legal standpoint, you get the benefit of limited liability. That way, if anything does come up in the future (completely regardless if you have been doing everything correct or not), your personal assets are not at stake or at issue. From a tax standpoint, the IRS has made it as easy as checking a box on your individual 1040. The LLC is a "disregarded entity" in the eyes of the IRS, and its income is reported as your individual income. I do not know what you forego in terms of being able to claim deductions of the business; talk to an accountant.