​Do you need an LLC to sell online?

Hey everyone,

So I’ve been thinking about starting a small online store selling handmade pens. I’ve been doing a ton of research, but I keep going back and forth on whether I need to form an LLC or if I can just start selling as a sole proprietor.

Here’s the thing, I’m not planning to quit my day job anytime soon, and I’m starting super small. Like, maybe $500 in sales a month if I’m lucky. But I’ve heard horror stories about people getting sued or having their personal assets at risk because they didn’t have an LLC. On the other hand, I don’t want to overcomplicate things or spend money on legal fees if it’s not necessary right now.

My cousin started selling vintage clothes on Etsy a few years ago and never bothered with an LLC. She was doing pretty well until someone claimed they got a rash from one of her sweaters (turned out they were just allergic to wool, but still). She ended up settling out of court, and it was a huge headache. Now she swears by her LLC, but I’m not sure if her situation applies to me.

So, do I need an LLC from the start, or can I wait until I’m making more money? For those of you who sell online, did you start with an LLC or wait until later? Any advice would be super appreciated.