Forming an LLC creates a legal entity separate from the members of the LLC. This creates a shield of liability and protects the personal assets of the members. In general, the amount a member invests is at risk of loss but personal assets such as house, personal accounts, cars etc…. are separate and are shielded from creditors.
An exceptions would be debts that are personally guaranteed by the member of an LLC. In addition, if the member does not operate the business as a separate entity such as commingles personal checking and business checking, there is risk the shield may be pierced and the member is subject to personal liability.
If a member is held liable for personal actions not associated with the LLC, the LLC membership is a personal asset of the member. The assets of the LLC are not but the membership interest is. That is a creditor or judgment creditor could place a lien on the membership interest of the LLC if the member is personally sued and held liable. The membership interest is a personal asset of the member.
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