Internet startup Sole Proprietorship or Corporation

I am thinking of starting a retail business on the internet. Either selling mechandise through ebay or through my own web site. How risky is it to sell merchandise as a sole proprietorship? If I am just starting out, is it worth incorporating right away. I would like to be able to switch gears on products if necessary. I don't want to be locked into a specific business description in a corporation.

Read the sections on FreeAdvice.com about business -- it has the answers.

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Should I switch from a Sole Proprietorship to a LLC?

I have a similar situation but could not find where ALawyer suggested
"Read the sections on FreeAdvice.com about business -- it has the answers."

I am trying to determine if I should switch from a Sole Proprietorship to a LLC

I resell small electrical appliances through an online store
I purchase them from a distributor in the US and they are manufactured in Asia
I stock and ship some and I some I have drop shipped
I am the only owner and worker in my business.
I have product liability insurance for $500,000 and a $1,000,000 personal liability policy
Is my liability from an injured customer the same whether I am a LLC or a Sole Proprietorship?


Last year my Sole Proprietorship made a taxable profit $75,000 and I paid @ 15% for the SP Tax or @ $10,000
Could I have paid less tax if I were a LLC or other kind of Corporation?

How much higher are fees and taxes and cost to prepare the reports for the fees and taxes for LLC vs. a Sole Proprietorship?

Thanks
Ric