There is really no protection from law suits. It's like the choking guidelines. Even if a 10 year old sticks a button in their mouth and chokes, you can be sure that their parents and their bottom feeder lawyers will sue you for something. One would think a 10 year old would know better, but not so.
When a diner sticks a 2x2x2" hunk of meat in their mouth, chews it twice and then tries to swallow, and passes out on the floor, guess who will be responsible? The waiter, the chef, the rest. manager, and rest. owner, probably the meat supplier, and the farm that raised the beef. the only thing they can't sue is the steer.
Become an LLC, it helps, but not all the way. And know the laws and regulations covering your product, follow the laws, and stay away from products that are recalled. That's why I'd never make sleepwear for kids. Nor loungewear. Contrary to public opinion the CPSC has determined it is in fact a sleepwear catagory.