Growing my company. I need your input!

As you may have read in the introduction I posted, I run a small web hosting company and have since May 2004. At the time, it was an easy and low risk way for me to get my feet wet with entrepreneurship. It also enabled me to take advantage of my web design and technical skills. I never bothered to register as a LLC so this is probably something that would need to be taken care of before any serious expansions are attempted. What are the consequences for conducting business without being registered as a either a corporation, LLC, sole proprietorship, etc? I understand that there is no division between personal and company assets but considering the size and type of business I run, I don`t feel particularly uncomfortable about this and plan on changing it before building a team. Currently I run everything on my own. At present, the company is stagnant and receiving very little attention due to its self-sufficiency. I just sort of milk it like a cash cow at the end of every month. Ideally, I`d like to put together a team of web designers, developers, identity specialists, etc, and really grow the company. Ever since it`s inception I`ve relied entirely on word of mouth for business and would like to initiate marketing campaigns once the aforementioned changes have been made. The brand is memorable, the company has a small customer base which can be targeted for when new services are rolled out and it also has the advantage of history doing business. A few concerns I have: 1. Working with people remotely. How effective is this when you`re relying on people to make up critical parts of the business? Can a business really operate as a business when all of it`s members are living and working independently of one another? I`d really like to tap into the local market and would prefer it if team members lived in my locale. 2. Ownership. I`d really like to work with someone who can assume a leadership position and make pivotal business decisions concerning client projects, employees and other business related matters. Thoughts on this? This would probably be a partner. I guess what I`m considering is taking a seed that has already been planted and maximizing its potential to grow by giving it the nutrients it requires which are exposure and the support of a dedicated and talented team. What do you guys think about this idea? What is the next logical step if I`m to proceed? Any reasons why I shouldn`t proceed? I`ve also considered selling the company and using the money to invest into a new venture. It isn`t that I dislike what I do, but like I said, there`s very little action going on now and the company is dying on the vine. I either want to revive it and come back strong or pull out and get into something else. Ideas? Thanks, Mason