Questions on the mechanics of an LLC for a few SFHs

[Gordon Scott]

Hi All, hope this is the appropriate forum for these newbie questions

Quick background, my wife and I now have 3 SFH rental properties in California. There seems to be an active debate at my workplace as to whether small investors really need LLC's as opposed to having adequate insurance and umbrella policy to cover those. Currently we do have an umbrella policy, but I'm trying to do the research to see if an LLC is something to pursue or not.

There are a lot of discussions in the forums about the legal and tax implications but not so much about the details of operating an LLC and what to expect if we go that way. Legal and tax considerations aside, I have a couple of questions regarding the general mechanics and maintenance of an LLC.

1. 1. What happens to insurance when moving SFH into LLC? Can I add LLC as beneficiary to existing plan or do I need to cancel and create a new insurance plan for the LLC? Typically how different are rates for an LLC?
2. 2. My understanding is that California has yearly $800 fees for LLCs, so likely I would put my 3 properties into a single LLC as opposed to playing $2400 per year to maintain, Should I then look at an umbrella policy for the LLC to additionally cover all 3?
3. 3. I'm using a property management company and assume they would then start charging and paying the LLC rather than me personally. Are there any other things to be aware of when using a property management company in this regard?
4. 4. For any large maintenance projects, what is the 1099 process like? Realistically does it make it harder to find contractors to work with?

Thanks for any insights!