Congratulations on creating baits that are increasingly popular. It sounds like you will be a busy guy.
I am in a similar position but have been a business owner and investor most of my life and need to make quarterly tax payments anyway. I never expect to make a profit because all proceeds are donated but the tax records still need to be kept.
Don't let the taxes scare you. Tax payments are deductible like other business expenses and it is not difficult. It is not like every quarter you have to do all the paperwork that you do for April 15th.
I would never advise you to evade taxes, even though it seems to be a popular temptation. Of course that is a moral and legal decision you need to make for yourself and I won't get on my soap-box.
However you proceed, there is no reason to make your small business more complicated than it needs to be. You already have a Tax ID number; it's your Social Security number. There is rarely a reason to create a business entity that requires a new federal ID assuming you will not have any employees or outside partners/investors
Some equipment investments will need to be capitalized, meaning they will be subject to depreciation rules. That is not as complicated as it may seem. You just may not be able to deduct every expense in the first year you buy it but you will get the deduction over time.
My guess is that you will not show a cash profit after deductions. Of course, keep good records of all incoming and outgoing money. A simple spreadsheet works, but if you use a program like Quicken it is easy at tax time.
I reccomend speaking to your usual tax preparer and let them know you will have a small home based business.
Mike