Umbrella Insurance VS. LLC/EIN for my property

[Bobby Shell]

I have heard getting an LLC and EIN to manage my first rental as a business was good. But an experienced friend just told me that it is actually better to get Umbrella Insurance because if set up as an LLC I can still get sued.

Should I get Umbrella Insurance for myself for my rental, or should I set up an LLC and get an EIN?

Did I ask that Q correctly? Is this recommended from your all experience? I know doing an extra W2 is going to cost more as well.

Thanks!

[Ned J.]

In my research I came to the conclusion that for many of us small time landlords, having an LLC was a waste of time and $$. The perceived legal protection is very easily pierced by a half way decent lawyer....especially if you have ANY mixing of the LLC expenses and profits with your owner personal ones....and most small time landlords aren't that vigilant.

In some states the costs of an LLC for small landlords also just doesn't make sense... I think a lot of people just do them because they think its cooler....sounds more legit.....playing with the "big boys" kind of thing....

My suggestion is to have high value umbrella policy at the minimum.....and do an LLC as an added layer if you want, but don't fool yourself on how much it protects you