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If you want to protect Yourself from unforeseen lawsuit against that separated entity as trust or LLC - you are on the right track.
But if you OWN that the entity - and that is a lawsuit against you personally - your ownership is not protected.
In this case you might better to have an irrevocable trust which is not owned by you - but in which you are a beneficiary - then trust assets are protected from judgments against you personally.
If you own the LLC - that will not provide such protection - but will protect you personally from judgments against the LLC.
Regarding tax treatment - if that is an irrevocable trust - it is a separate taxing entity - and files its own tax return.
However - normally tax liability of the trust is higher - so when income is distributed to the beneficiary - it is deducted for the trust and taxed for the beneficiary.
With the single member LLC - that entity is ignored for income tax purposes - and all income and deductions are reported on YOUR individual tax return - so that makes no difference for income tax purposes.
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