Do I have to set up an LLC?

[Tony T.]

If the purpose of an LLC is to protect my personal assets, can I forgo setting up an LLC and instead purchase personal liability insurance? Does anyone know the pros and cons of doing each? I honestly a little intimidated by the notion of an LLC and what it involves.

[Bill Gulley]

You need liability coverage either way, do not rely on a closely held LLC to shield you from liability especially if you manage the property. Starting a company should be for business reasons, the limited liability aspect is usually misunderstood and should not be the primary reason to form any entity. A popular school of thought but you can do just as well and make life easier holding properties personally with a good insurance policy. :)