Umbrella Insurance vs Wyoming Holding company holding California LLC

[Alex U.]

For your buy and hold properties, to my knowledge there are 2 predominant strategies.

1. Keep properties in your name or in a trust, get $1M worth of liability insurance for a few hundred dollars and rent out the units

2. Create a (Wyoming/NV/RI holding company), create a California LLC put properties into LLc. Keep primary in your trust. Put the holding company in the trust.

Option #1 avoids, the franchise fee in California $800/year, plus $20/month RA fee for Wyoming.

If someone has a couple of properties, what's the best way to operate?  Pros and Cons of each strategy.