[dragonwriter]

> You can put your house in an LLC for example so if you are personally sued they can't take it.

If it's a single member LLC, that actually doesn't work in a lot of states (the whole purpose of the way LLC reverse liability protection is to protect the integrity of corporate joint ventures, which are the motivating use case for LLCs), and has either been found by courts are expressly specified by legislatures not to apply to single member LLCs in many states. There are a handful of states where it does apply, though, and others where the rules are unclear.

And even when it does apply, they can't take your house directly, sure, but they can get a charging order against any distribution of funds from the LLC to you that hangs around until you do pay the judgement, so you can't ever extract funds from the LLC. And, sure, you can mitigate the effect of that by just running more of your life through the LLC, but the more you do that, the more you risk the LLC itself being liable, either alone or with you personally, in any legal trouble you get in, in which case the whole purpose is defeated.

Also, LLCs aren't free to set up and maintain, there are fees and additional compliance/tax prep/record-keeping costs. It makes sense if you are wealthy (especially in a particularly SMLLC-friendly jursidiction), but not for most people, even most well-paid workers.

[blackflame7000]

The house owned by the LLC does not have to be in the same state as where the LLC is filed. You can file the LLC in a state that has laws friendly to what you are trying to accomplish. Furthermore, services like LegalZoom make the costs negligible to the asset they are protecting especially since it doesn't make any money.

There are much more conventional albeit expensive alternatives like umbrella insurance but that doesn't change the fact that the fear of a lawsuit doesn't have to be so scary. I mean that's what many companies are banking on because the only people that really win in litigation is the lawyers.

[dragonwriter]

> The house owned by the LLC does not have to be in the same state as where the LLC is filed.

It doesn't, but in many states to own real property, just as to transactions business, you'll have to register your foreign LLC as a foreign LLC, which often involves paying a foreign LLC fee equivalent to the franchise fee you'd have to pay for a local LLC in the same state.

Also, bankruptcy (which a judgement you can't satisfy without the “protected” asset could force you into) will bypass he protection, so basically this doesn't do much protect your assets if you actually need it to (that is, if you can't satisfy the judgement without the “protected” assets.)