You are not protected by the change to an LLC, since the debt incurred was incurred while a sole proprietorship. (The LLC structure will protect you from many debts going forward, but has no bearing on debts that pre-date its formation.) That means that your husband is personally liable for the unpaid assessments. You may be be sued by another state or its collection agency, so the fact that the debt is to another state does not protect you. You can defend against the claim, if you feel you have a good defense; you could try to settle the claim for either less than the face value or by offering to pay it out over time, though it's up to the other party (the state and its collection agency) to decide what they will accept); and, of course, you could elect to wait to see if you are sued before doing anything, since you don't necessarily have to do or pay anything if legal action is not taken.