Legal Question in Business Law in California

Re: protect business assets from personal assets & debits

The debts are probably community obligations, so putting the business in your wife's name is not likely to be helpful. There are other reasons not to do this as well (the laws against fraudulent transfers, the fact that earnings of the business will be community property, etc.)

Incorporating or forming an LLC might be a useful technique to build a firewall between business assets and personal debts, but this is not expense-free nor 100% foolproof.

Your best bet is to make enough money, either by this Internet business or a real job, so you can pay 100 cents on the dollar on the credit cards. I do not know the nature or extent of your disability, so of course, jobs of some types may be out of the question. Have you applied to the Social Security Admin. for a lump sum or monthly disability allowance?

Re: protect business assets from personal assets & debits

Proper business form is a corporation, because it does protect personal assets. However, your stock in the corp would be a personal asset. You can achieve your protection goal through proper planning and corporate formation. Call me if interested in doing it right.