I have a small specialty sports equipment business that I have been running as a sole proprietorship for a few years now. I have been selling primarily at fairs and conventions for a decent return on time invested. The largest limitation has been materials, I have been re-purposing materials bought at retail stores that are available seasonally. I have found a manufacturer that will fabricate the parts I need, but it is in quantities larger that I am comfortable purchasing as a hobbyist. And it would require me starting a wholesale arm of my operation to sell the parts to other hobbyists, because the fairs and conventions I sell at would not be able to support the quantities I would be reviving from the manufacturer. Also, because of the nature of the product I have been reticent to expand my operations due to the risk of being sued personally for injuries cause by misuse or negligence on the part of the customer.
I am wondering what would be the best option for me going forward.
Should I just continue as a sole proprietorship and just expand my scope?
Should I form an LLC or a Corporation and pull funds out of the LLC in the form of wages?
And if I am forming an LLC or a Corp, I live in Oregon, should I file locally or in another state?
