It's true that forming an LLC does not protect you 100% from being sued personally. For taxes, a one-owner LLC is treated the exact same as not having one (you will fill out Schedule C on form 1040). You can deduct business expenses either way.
Random side benefit, if you are into this, is that you can start churning business credit cards and getting bonuses.
It was easy for me to set mine up in Florida, but I am CPA and may be taking my knowledge for granted.