LLC or Umbrella

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?

Thanks…

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.

Good point!!! Thanks and I get the picture :}

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

What is with all of the users and the CAP LOCK today??

Please take you caps lock off…in the Forum world, this is the eqivalent of yelling!

Keith
Moderator