If you do, do you use a LLC creation website, or do you do the paperwork yourself and list yourself as the registered agent. If not, what do you do instead to shield yourself from liability?
Note that it requires more then just creating an LLC if you're really trying to do it for protection. The LLC really needs to have its own finances, equipment, etc, or a lawyer can "pierce" it in court.
If it's generating cash-flow of any sort - yes. But I don't do that beforehand. Too many unfinished projects. I have once and I feel like I just wasted money. Won't do it again unless I'll have reasons to believe I might get in legal trouble. For most side-projects that seems pretty unlikely.
I have used Harvard Business Services (www.delawareinc.com) in connection with forming and maintaining several Delaware LLCs. They seem to provide good service and convenience. Remember, in addition to formation, you will need to maintain an in-state registered agent, pay franchise taxes, occasionally perhaps pull down a certificate of good standing, etc. I don't know that the do-it-yourself route is the best. On the other hand, when I practiced corporate law in a previous life, we used a higher-end corporation service company that was substantially more expensive. So I felt I took a reasonable cost solution that was easy to manage for a side project. Note: Nothing here is legal advice; I am not a representative of or compensated by Harvard Business Services. Just my opinion ... YMMV
Wouldn’t it be worth forming the LLC in a state that doesn’t have ongoing fees and forms?
I have a single LLC that owns all my side projects. I used an agent to register the company a while back but I don't know there is much more value than doing it over a website