Bankruptcy/judgments and colections

The LLC's assets are safe from your personal creditors. However, they can seize your interest in the LLC to satisfy the debt. Same if you form a corporation. They can take your stock. Only bankruptcy or payment will help you.

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Well, the LLC will not protect YOU from any pre-existing personal debt. The LLC will protect you from debt that the LLC itself incurs.

Also remember - most small businesses do not get investment or credit extended to them when they first start out - a personal guarantee is almost always required. If that is the case here, both the LLC and you personally will owe the debt.

Talk to a bankruptcy attorney, and to a business attorney in your area about this. Make sure you are well informed prior to starting this.

Good luck.