Forming a LLC to protect Collection?

[Number200k]

I love numismatics and I collect professionally graded coins (mostly gold and silver).
I buy and sell few coins every month through eBay, coins shows, auctions etc.,
My collection is worth approximately $75,000 and may grow when I add more coins to it.
I own my collection at my home safe (about 300 coins, many key + gold DE) and I have insurance for my collection through AXA art Insurance company, that covers for theft, damage, fire etc.,

Questions:
1. Is it beneficial to form a LLC to own this collection? Any benefits? (cost about $500 to setup)
2. As I trade coins can I form an LLC and charge the coin show expenses as a business expense?
3. Any tax advantages on doing this?
4. Will the LLC protect my collection from any law suits or judgements against me/my property?
5. How do professional collectors protect their assets (cars/art/coins) etc?
7. Can I get better insurance (rates/coverage) having a LLC own my coins?

8. Can I consider myself a dealler and get those privys? Iz it eoth it?

Thank you.

[coinman_23885]

Some advice:

1.  Never solicit legal advice from the internet, especially not from anonymous strangers.  You are asking for trouble.  ALWAYS consult with a competent, licensed attorney in your jurisdiction.  You need to sit down and discuss your goals and motivations.

2. Many of your questions involve substantial issues of state law.   As you probably know or should know, the laws of all fifty states are different.   We have no idea where you live.

3. Although there is some variation among the states (see #2), there are commonalities.  A limited liability company would shield you from the company's liabilities. As for shielding the LLC from your debts, it doesn't work the way you think it does.  Nothing would prevent a judgment creditor (with a personal judgment against you) or bankruptcy trustee/court from pursuing the LLC if needed.  After all, the LLC would still be your asset.  Some possible remedies: The LLC could be dissolved, your interest foreclosed upon to pay your creditors, and your LLC could be ordered to turn over any profits.   Some states limit the remedy to a charging order, but then the LLC could be attacked as an alter ego, etc.   Again, the rules for execution of judgment vary by state.   

4.  You may be able to set up an irrevocable trust to offer some asset protection, but this is highly dependent on state law and there is a large variation.  See #1 and #2.

5.  What is the real question? You say you want to protect your collection from lawsuits against you.  It is common for older people to transfer assets before entering nursing homes before attempting to qualify for Medicaid.  Since many collectors are older, this is a logical assumption.  If this is your question, there is a complex series of Medicaid asset transfer/clawback rules.  Not enough information is given.  Again seek counsel.  I'm not saying this applies to your case, but to be thorough, if you are asking about existing judgments, lawsuits, or liabilities, then transferring assets is a huge mistake.  The transfer could be set aside using a voluntary/fraudulent conveyance action or through a bankruptcy clawback.

6.  See a CPA.  In addition to federal taxes, most states (and even some municipalities have local taxes dependent on income) also impose taxes that could be implicated.

[GoldFinger1969]

By and large, a "C-Corp" is better at protecting assets.

CM is right, consult a tax attorney.