I just heard about the many merits of setting up an LLC to hold properties. I am about to buy some nice wooded land with no intention of selling it, maybe putting a cabin on it. My umbrella liability policy will cover it. There will be no rental income, nothing. Can someone advise if it’s worth the time and expense to set up an LLC in this case?
You could hold property in any type of corporate entity or trust however in this case you have very little liability as you have no intent to rent or recieve income and probable will only use it with family and friends.
Check your umbrella policy for exclusions and terminology as a commercial business liability umbrella policy may exclude a property strictly used for personal use! However as a personal use possession you can get good insurance with large policy coverage, if in doubt talk with your insurance broker about your intended use and options.
Thanks GR. I appreciate your advice.