Purpose of a LLC and types of LLCs?

[Liwen Gu]

So I was thinking about setting up a LLC for the next rental property I buy, to add some separation between my rental and my personal assets. However, I was speaking with an attorney and he said that a simple single member LLC offers almost no asset protection at all, that if someone decides to sue much LLC it would be quite easy for them to go after my personal assets as well. He mentioned that a LLC may have some tax benefits but it's not effective as a mean of asset protection. Is this true? It sounds like true asset protection cost about $20,000 as an initial a set up which seems like a lot to me. He also mentioned that I can choose a series LLC which offers a little bit more protection and costs about $3000 to set up with anonymity $300. I want to get some opinion from the BP community. What kind of set up do you have for your rentals?

[Costin I.]

Talk with another attorney - one that tells you "LLC it's not effective as a mean of asset protection" and asks for 20K for setup is not a good attorney.

Series-LLC do not offer you better protection than an LLC. But if you have the option for Series-LLC, that might be a better alternative for other reasons.

Talk with @Scott Smith .