LLC recommended for House Hacking?

[Catie Mong]

Hello I recently bought a house hack and have two housemates moving in at the end of the month. I was considering getting an LLC for signing the contracts/property management. Is this recommended, or should I just get an umbrella policy? Would I be able to write off as much taxes if it's under the LLC? My main concern is a liability, but I don't have much in way of personal net worth. If I don't get an LLC, am I fine with an umbrella policy and a separate bank account? Any help appreciated!

[Eamonn McElroy]

Check your local and state law. You might lose your homestead status for property taxes if the property is owned by an LLC.