Single crystals of LaFeAsO were successfully grown out of KI flux. Temperature dependent electrical resistivity was measured with current flow along the basal plane, rho_perpend(T), as well as with current flow along the crystallographic c-axis, rho_parallel(T), the latter one utilizing electron beam lithography and argon ion beam milling. The anisotropy ratio was found to lie between rho_parallel/rho_perpend = 20 - 200. The measurement of rho_perpend(T) was performed with current flow along the tetragonal [1 0 0] direction and along the [1 1 0] direction and revealed a clear in-plane anisotropy already at T leq 175 K. This is significantly above the orthorhombic distortion at T_0 = 147 K and indicates the formation of an electron nematic phase. Magnetic susceptibility and electrical resistivity give evidence for a change of the magnetic structure of the iron atoms from antiferromagnetic to ferromagnetic arrangement along the c-axis at T^ast = 11 K.
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