He should incorporate when he has something worth losing. For example if he just has his shop that he rents, and lives in an apartment, and his only assets are the tools he uses to make the knives all they can get by suing is his assets, and garnishment. If, for example, he acquires a house, some nice cars etc then he will want to have the shop, and the tools transfered to the LLC and keep the house and cars under personal assets.
Just because he doesn't do anything wrong does not make him immune from lawsuits. Anyone can get sued any time, by anyone, and it costs the defendant to hire a lawyer to defend.
Why would he want to sue his assets, though? That sounds awfully Californian.
All any plaintiff can get by suing are his current assets and garnishment.
It sounded ultra clear at the time I wrote it, and re-reading it it's clear as mud.
If he has an LLC they can take his company assets but not his personal assets.
Well, that still sucks, but I guess it's a matter of hedging one's bets.
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