Do an LLC. Contact your Secretary of State-they ususally have a Corporations, Elections, and Commissions-type department, and file the paperwork. You have to file "Articles of Organization" which basically lay out who owns and runs what, how/if the officers are paid, etc. Then you file with the state, pay a fee, and you're in. It's something that's totally doable yourself. Each year, you'll probably have to file an annual report with them. We can do ours online here.
The catch, though, is that you can't co-mingle your family finances with the business'. Therefore, you need a separate checking and savings and credit card (if you want one) that are used exclusively for the business. You can't dip into the business when things are tight at home, above and beyond what your articles of organization list as your salary, if anything. If you start doing that, you're running what they call a "shell corporation" which is basically a way to write off personal expenses under the guise of a corporation. Plus, if you are sued, and the plaintiff can prove you co-mingled personal and business funds, the whole point of the LLC is blown, and you're risking losing your shirt.
Like someone else mentioned, you're protecting your cars, your house, etc. Unless you carry adequate insurance, everything else (farm-wise) is game if you're sued. If you plan on allowing visitors to see the farm or the animals, have them sign waivers.
You would be a fool not to do something, because these days, you can't count on anyone to take the high road and not sue if they break a nail on your property. Good luck, you can do it; and if you can't, there are a million lawyers that you can pay to.
