Here is the definition, note the last line:
"An LLC has some characteristics of a corporation, but it is not one. It does offer some of the benefits of a corporation, particularly the limitation of an owner's liability. An LLC provides lawsuit protection, credibility, tax savings, deductible employee benefits, asset protection, anonymity, the ease of raising capital, creating a separate legal entity for personal protection, an LLC has a broad range of powers beyond that of a sole proprietorship, small claims court benefits, separate liability for corporate debts, and perpetual duration. When you form an LLC you create a separate legal person and you are a shareholder. LLCs are preferred because they combine the limited liability protection of a corporation and the pass through taxation of a or partnership. The downside to an LLC is that it does not offer the free transferability of ownership, perpetual existence, and the ability to be owned by a single individual."
I have been involved in two LLC ventures. The one I am dissolving right now simply costs me franchise tax every year and doesn't provide any real benefit. Nothing can prevent you from being sued but usually the limit will be on the assets of the company. That scenario potentially means you put all your tools into the business and lose them in a court fight. BTW, homeowner's insurance will seldom protect you in this situation - if you are worried, obtain a small insurance policy and call it good. If you get sued, the opposing attorney will likely be aiming at a settlement from that.
I'm not an attorney or accountant but I sometimes play one on TV - plus I stayed at a Holiday Inn last night...:-)
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