Too small to create an LLC?

[Drew Whitson]

I own five single family homes in the Twin Cities area (Minnesota) and am trying to learn if creating an LLC and transfering these five houses to the LLC is a good decision and worth the time and money for such a small portfolio.

I currently have a $1M umbrella policy with my home owners insurance company but am wondering if one additional layer of protection would be prudent.

If I should create an LLC, should I create one for each property and another to hold the five LLC's? Are there any tax advantages to moving to this legal structure?

[Nathan Emmert]

LOL, nah, it's new :)

Rule of thumb I've read is 1 LLC for every $250k in equity. That might cover all your properties or it might require 1 each.

I would advise talking to a lawyer on the LLC. If you do it wrong (not funding it well enough for example) it can provide next to no liability protection. They are good tools, but must be employed properly to work.