We are setting up an LLC next week and then transferring our property into it, opening a new bank account for the LLC and then doing all business thru it.
Will it completely shield us from every possible lawyer and law suit? No.
Will it, along with short term rental property insurance shield our personal assets from every possible lawyer and lawsuit? No.
Will it make getting to our personal assets more difficult for a lawyer and lawsuit to "pierce"? 100% yes it will.
An LLC is a tool like any other, similar to a firewall. And like all firewalls, it's just another hoop that someone will have to hop thru at their expense, time and burden of proof to get at our personal financial situation.
For a few hundred a year, it's worth it to us.
EDIT to say: we came to this conclusion by talking to several lawyers we know and two accountants. Their answers to all our questions were basically always "Well...yes and no..." - very noncommittal. There is no absolute sheild from liability.
But all agreed - having an LLC for liability shielding was better than not.