Legal Question in Business Law in California

They can't take over the business itself if it was set up properly and if you are keeping your personal finances separate from the company's. However, your creditors can go after assets you own personally -- including your shares in the LLC.

Ordinarily the creditors would have to obtain a judgment against you before levying on your assets, though there are exceptions (most notably the IRS) to this rule.

They go after you and whatever assets you have, including stock and ownership interests.

I agree with both previous answers, and will add a couple thoughts:

1. There is a difference between "going after" assets and "getting a judgment" affecting those assets. It is easy to sue someone, and oftentimes hard to win the suit, but win or lose, the suit itself is a hardship for the defendant.

2. The likelihood of a creditor attack is usually proportional to (a) the quality of their case, (b) the relative amount owed, and (c) the perception of "deep pockets" able to pay a judgment.

If the amount owed is large, the creditors have good cases and/or are unhappy with you, and you look like a fat cat, watch out! However, this doesn't sound like you.

Also, membership interests in small LLCs don't have liquidity or ready marketability, so creditors are not likely to view them with relish when they think about suit, judgment and collection.

One more thought......all three of us are making a distinction between a suit against you where the LLC "shares" or interest owned by you would be the target, on the one hand, and a suit against the LLC for which you might have personal liability. We are talking about the former. The LLC itself will not be liable for your old debts, if it is set up and run properly, nor will you be liable for its debts.