LLC to manage personally owned property

[Marc Izquierdo]

Hi everyone, I recently consulted my attorney about forming an LLC to manage 2 rental units (duplex) that I own in my personal name. He said that it was a good idea as any business transaction should be done under an LLC as a homeowners policy likely doesn’t cover contractual liability. What else do I need to go along with the LLC? Business insurance, management agreement between myself and the LLC, etc? Also, I plan to set up business bank accounts for the property (being the only asset the LLC owns). Rent would be paid to the LLC and put into one of the accounts, expenses would be paid out of the LLC account, cash would be kept in the account for future expenses, then the remains would be transferred to my personal bank account. I would also transfer money from my personal accounts into the LLC accounts, if needed. Does this sound like I’d be “mixing expenses” which could essentially void the LLC? All of these questions will likely be passed along to the attorney and a CPA. I was just hoping for some free advice! Thanks in advance