LLC, Landlord Insurance, Umbrella Insurance

[Nicole Grant]

I've been doing some research on all these to see which route to take to best protect myself and my assets. I wanted to get advice from those doing this longer then I have.

I have one duplex that was bought in Nov 13' for $47K.. I am looking to buy 2 other investment properties within this next year. I am currently managing the property myself and plan to continue. I don't have an LLC set up at the moment. While I just have this one property would it be best to just have umbrella insurance? or just have landlord insurance?

[Jerry W.]

@Nicole Grant , even if you have an LLC you need insurance. If you self manage you are going to have personal liability even if you have 3 layers of LLC or corporations. I will try to find an old post of mine about this as my typing is horrible and it is long. Ask a good CPA advice on what form of ownership you should use. Corporations in my opinion get more deductions than personal owners, and you might save some taxes if you plan on drawing money out to spend with one form over another. Your personal plans explained to a good accountant could save you thousands. Corporate entities can buy vehicles to use in the business and deduct all of the cost, corporations can buy insurance for its employees, etc, but there are many many rules for each decision. While personal protection can be a reason for an LLC taxes are much more important. there are also issues when you own yourself and later transfer to an LLC. Ask now, save money every month after that.