Is it useful to setup a Wyoming LLC

[Hegsdery Gret]

I have been reading what different people say about starting an LLC. SOme say do not use an LLC and only use liability and umbrella insurance. Other think setting up an LLC in the state where the real estate is . Others setup a Wyoming LLC and register it in the state where the property is. Between the 2nd and 3rd , it is that Wyoming has stronger debt friendly laws. Does anyone have any ideas as to what they generally do?

[Nathan Gesner]

@Hegsdery Gret there is value in it, but not as much as people think. There are better ways to protect yourself, like knowing/obeying Landlord-Tenant laws, treating people honestly, or documenting everything. 

You could protect yourself with an umbrella insurance policy with a lot less effort.

More importantly, do you even have enough to protect? I have ten properties, 28 units, and they are all personally owned. I know others that have 50 - 100 rentals and they are personally owned. The odds of being sued are small. The odds of losing are even smaller. The odds of losing so much that your insurance won't cover it is even smaller. The odds of losing so much that you lose a single property is even smaller. The odds of losing so much that you lose all your investments and end up on the streets probably can't even be calculated.

Know the law. Obey the law. Document everything. Treat your tenants honestly. Worry about an LLC or Trust when you've got something to worry about.