I am starting a bakery from home business. As a part time student as well, less than $3000 a year income as of right now, and not many personal assets, I was all set to register as a sole proprietorship. But, doing more research I was thinking about the consequences if someone attempted to sue (since it is a food business-people like to claim they have food poisoning sometimes to go after companies). Then again, I could be protected under liability insurance right? Any suggestions would be appreciated. Thank you!