The Hub

Hey everyone. I build as a hobby but in the last couple years have been selling more and taking on commissions. As my clientele starts to branch out from friends and friends of friends to people I don't actually know, I realized I may need to consider protecting myself from a legal standpoint.

The worst-case I want to avoid is someone suing me as an individual, and potentially going after my house or assets. I'm not doing repairs, so I'd think that the worst case within the realm of reason would be that someone hates what I build them, so I refund them. But I don't want to make any assumptions about people being rationale.

Should I look into creating an LLC? Or some other business entity? By the IRS definition, my operation would likely still be considered a hobby. So is there a better way to protect myself, like possibly a sales contract with clear provisions?

Thanks for any advice!