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All the information you are wanting (the nitty gritty specific stuff) is beyond the scope of the services provided by JustAnswer.
However, I can say that LLCs are generally better for small business and generally offer better liability protection than corporations.
Once you have your LLC, you can even have it taxed as a corporation if your CPA/accountant advises that would give you a positive tax benefit.
As far as employees, you would pay their wage/salary and 1/2 their social security, FICA and other such taxes -- about 7.5%. You also have to withhold their income tax and submit it with a report to the IRS and state.
Generally, the type of rental equipment that you're speaking of comes with the licensing right to lease/rent the equipment to third parties -- so you wouldn't generally need to do anything else. However, that's an important question for the company from which you ultimately buy your equipment.
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So to be clear, I was aiming toward an LLC anyway, but it is required? I cannot just run the business without making it an LLC?
In reference to the rental equipment, I am not purchasing from a company that rents the equipment. I am planning to purchase my own new products and rent the equipment on my own. I have already done some research and found that their are contracts I need to build and liscences required. Do I need to involve a lawyer for that?
You could run the business without an LLC, but then you're exposing all of your personal assets and yourself to liability. If you operate the business through an LLC, and follow proper protocol (keeping personal assets away from the LLC and LLC assets away from yourself), then you get a nice shield of liability protection.
I understood you were buying these yourself. What I noted is that when you buy, the product generally comes with the right to lease it and use it to make profit. But ask the company you buy from whether that's the case.
The licensing and rental agreements to your customers should be drafted by an attorney, yes.
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