Yeah do it or don't easy to talk, I'll probably just find some off-the-shelf ToS/Privacy Policies to go with initially and if it happens to be profitable worry about lawyers later when there is actually money to use.
edit: me focusing on the negatives
In the US, anybody can sue you for anything. And if they do, you will have to defend yourself in court.
No, you don't need a LLC, and it doesn't shield you from a lawsuit unless you manage the LLC like a real corporation.
I see this type of comment on HN quite frequently. If you're that worried about lawsuits, maybe starting a company isn't right for you.