It does not matter if you are a small business, or just starting out, or just have 1 client.... It is a Business and it has to be treated as such.
So many times I have seen people get their logo designed, have their website or other SM site set up and they are ready to do business; but, DO NOT HAVE A LICENSE!
It can be confusing when you are trying to figure out what one is the best option for you. Sometimes you may want to start small then move up, and that's ok. For others, you may want to go ahead and do the LLC, and that's ok too. But, you can get into trouble if you do not have something that says you can do business.
Please, I beg of you, if you don't know what to do just ask me and I will gladly give you some direction and advice. Because, I DO NOT want to see you get into trouble, lose your business, or get discouraged from the lack of knowledge.