To form an LLC or to not form an LLC?

[Mandy P.]

Hello everyone! I'm about to refinance and just got the go-ahead from the lawyer about putting the property into an LLC. However, I had a few questions and concerns. Any help would be greatly appreciated! Also, the property and LLC will be in Florida.

1. If I chose to be taxed as an individual instead of a corporation (have my profit/loss flow through my personal tax return) will I still have the same protection as I would if I were taxed as a corporation?

2. Even if the mortgage is in my name, am I still protected because the ownership of the property in in the LLC? I guess my concern is that if I have multiple mortgages under my name for multiple properties but they're all in LLC's, all of my properties can be gone after because all of the mortgages are in my name. (I know this is probably a silly fear)

3. Will my homeowners insurance SIGNIFICANTLY increase?

4. Will my property insurance SIGNIFICANTLY increase?

5. Are there any other fees/significant increases of expenses I'm not aware of besides the yearly upkeep/filing fee for the LLC? I know the yearly fee is something like $150 which isn't bad at all.

I just want to make sure an LLC is the right step right now. After my mortgage payment and with property insurance and taxes the way they are now, I'll be making about a $300 profit a month on the house. If I have a lot more expense increases, I worry the protection of the LLC isn't worth it RIGHT NOW as I just graduated college and have no other assets to protect. If it won't have too much of a negative effect on the monthly cash flow, I'd like to go ahead and do it, especially because it would be good for the future. But if it will, I'd rather wait.

Thanks in advance for any advice/shared experience!

-Mandy