My business is going to offer a service do I need contracts?
International Law Attorney
You need a legal structure and tax advice. You need also a CPA. Basically you need o be educated to these aspects so to start with the right foot and save money later. Look for an attorney in your area. Good luck
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As noted by my colleague, you really should speak with an business attorney and a CPA to get your business started the right way.
The SBA has good general discussions on some of the issues here http://www.sba.gov/category/navigation-structure/starting-managing-business.
Contracts are a critical aspect of providing goods or services and as a key means to reduce risk. Good luck on your venture.
This answer is for informational purposes only and is not legal advice regarding your question and does not establish an attorney-client relationship.
Contracts / Agreements Lawyer
Do you "need" contracts? No. Is it a good idea to have contracts? Almost always, yes. However, you don't state enough information to fully answer your question.
As for the legal steps to take. First, you should consider forming the company as an LLC (or, potentially S-Corp). There are many benefits to doing so - you can view the linked guides for some basic information. Note that you have other obligations also, likely some business licenses or permits will be required. You will also need to obtain a federal employer identification number for your business. Finally, you can possibly start accepting money prior to forming as an LLC - you would just be operating as a sole proprietorship. To be safe, however, it would be best to get everything in order prior to starting up.