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Potential liability for negligence from customer injury in the bicycle business is very high.
Not incorporating or creating an LLC would seem to me perilous. Also, business liability insurance may be extremely important, because a personal injury attorney would likely attempt to hold you personally liable, in the event of a serious injury or death, if you are a one-owner corporate/LLC entity.
Hope this helps.
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The best way would be to hire a private attorney with corporation formation experience to custom draft an LLC operating agreement for you. But, most people cannot afford this solution, and generally opt for generic solutions, such as may be found at http://www.legalzoom.com/, or http://search.nolo.com/query.html?qt=llc&col=b2store.
If you want to go the lawyer route, see: http://www.abanet.org/legalservices/lris/directory/main.cfm?id=CA.
If you purchase under your own name, you will be liable to that creditor if your LLC doesn't make it. However, you can guarantee the LLC's financing -- just be aware that you will be undermining a portion of your protection.
If you go it as a sole proprietor, then you need enough liability insurance to cover all of your net worth. Otherwise, you could be wiped out, for the amount above your insurance coverage.
Example: you repair bike, customer, who is a physician with high earning capacity, leaves, front wheel falls off in traffic, and customer is killed. Heirs sue you for wrongful death and they win a $10,000,000 award. You're toast.