kevin7890 you're right if there are restrictions to the liability, however I was assuming that nothing fraudulent would be happening. Personal guarantees are your responsibilities I did not mention that.
Where I am located it cost $50 to form an LLC and then you need to publish it (usually $40) and that is it.
Meal expenses are deductible up to 100% if it is a business meal.
Also, taxes are filed on the schedule c
http://www.irs.gov/pub/irs-pdf/f1040sc.pdf