Has an LLC ever protected you first hand?

[Nicholas W.]

So I know this a long running debate about whether a LLC is worth the trouble particularly due to the well known issues of getting conventional financing for one. Many people passionately encourage having every property in a LLC for asset protection purposes but can anyone share a first hand experience where doing so protected them or someone close to them. I'm not talking about the story a lawyer or guru once told you but actual first hand experience. I own a service business in addition to a rental property and the service business is held in a LLC but I can honestly say that that hasn't once benefited me. Sure I may sleep better at night, but owning rental properties in a LLC is much more difficult and I'm curious to hear if it has ever actually provided anyone real tangible protection to justify the trouble.

[Matthew Kreitzer]

Originally posted by @Aaron Howell:

You'll probably never know that you didn't get sued and if your LLC protected you. No lawyer is going to call you up and ask you if your property is in a LLC and base their lawsuit on your response.

 We routinely do just that at our firm. It is generally considered good form for collections lawyers who also handle litigation to determine whether a lawsuit is a good idea; given that we take most of our cases on a contingency basis.

I have personally represented quite a few people who would have been boned in their Personal Injury suit had they not been operating under an LLC.