I would not go through the trouble of setting up an s corp for something like this. With an S corp you must give yourself a salary and the taxes on that salary are the same as if you just had a regular LLC. Where the s corp shines is if you have large income. You only have to pay social security and medicare taxes on your salary and you take the rest of the money as distributions.

I just got back form the accountant and between doing my s corp federal return and state franchise tax the bill was $1200. With an income of $12,000 you will likely spend more on legal/accounting than you will save on taxes.

That being said I do think it would be a good idea to set up a LLC to provide protection from lawsuits, etc.