Verifying my LLC setup

I just formed an LLC for my rental property. Prior to forming the LLC, my liability protection was covered for the property in an umbrella policy on a personal insurance policy.

  1. Do I need to take out a new policy for the LLC? Do I only need basic Liability and fire damage coverage?

  2. Do I contact the court house or a title agency to file a quit claim to have the mortgage put in the name of the LLC?

  3. In forming my LLC…I have obtained an EID, filed with the Sec of State and provided Articles of Organization. Is there anything else that I missed? Will I get a confirmation from the Sec of State?



  1. Yes, you will receive a certificate of formation from the State (well, in TX anyway). It’s not official until the state says it is in writing. Don’t proceed until you have it.

Make your tax election, if you don’t like the default. Management agreement between you and the LLC.

  1. To transfer to an LLC, you need a regular deed

To avoid the due on sale clause, you transfer the property into a land trust with a separate designation of beneficiary form that does not get filed at the courthouse. Banks will allow people to transfer properties into a family trust, no problem.

  1. best to have the LLC have its own policy. however, any insurance is better than none.