I now have five rental SFH in Alabama. I contacted my tax attorney to ask about asset protection (LLC, S-Corp, C-Corp, etc.). He told me just to get a million dollar umbrella policy and cover each property at this point which would be fine. He said if I get a lot more properties or begin buying duplexes and fourplexes, then I should look into the possibility of an LLC.
Because of everything I have read on this site, I am a little concerned I may have gotten some bad advice. Would I be safe to say I should definitely consider the LLC option or do I take his advice with the umbrella liability policy?
an umbrella would do fine for the existing properties that you have. but remember if something happens to a tenant and sues all of your properties are in jeopardy including your home…i know investors that set up LLC’s for each property that they own. can get a little costly but remember this is a business and you dont want to take the chance. myself i have all of mine under one LLC…
you didnt receive bad advice just not enough of it
good luck
how’s that million $ umbrella going to look when little johnny slips on that loose board you didn’t repair and breaks his neck. heck, grannie got $10 million for a cup of hot coffee and a burned leg.
LLC PROTECTS YOU FROM PERSONAL LAWSUITS !!! IF YOU ARE PURCHASING PROPERTIES THEN I SUGGEST UNDER A CORP KEEP YOUR PERSONAL BUISNESS AWAY FROM YOUR INVESTING