1 LLC per property or 1 LLC + umbrella

[Jonathan Roveto]

Hi all,

I have been getting ready to establish and LLC for my properties. I am curious about 2 options. Do I get 1 LLC and put all 4 properties under it and pull out a 3M umbrella policy or do I do 1 LLC per property and put out maybe a 1M policy each? My concerns are that 1 LLC per property plus an extra policy on each seems like an expensive ordeal. On the other hand, 1 LLC per property shields each property from the others and provides high security.

Obviously, I take everything as risk vs. reward, so I am looking for opinions on this. The latter option provides high amounts of protection, whereas the former might be less expensive and at the least simpler. The former does give me higher exposure, but how likely am I to realize this exposure (getting sued for >$3M or multiple times in a policy period)?