Solo 401K for distressed assets / Private lending - Set up LLC?

[Mary Kang]

I plan to use my Solo 401K for investing in distressed mortgage notes, real estate and possibly private lending. From a business perspective and identity protection, does it make sense to set up an LLC under my Solo K and funnel transactions through the LLC versus my Solo K? In other words, the assets would be purchased/sold as "ABC Solo 401K Trust" versus "Credit Relief, LLC". I know there is more work and costs associated with setting up the LLC. If the asset ends up in some type of litigation, bankruptcy, foreclosure, etc, does it affect me any differently between being "ABC Solo 401K Trust" and "Credit Relief, LLC"...both for asset and identity protection? I would appreciate any feedback, especially from the other Solo 401K folks.

Thank you!