I need help in setting up an LLC for my real estate business.

[Alfred Amponsah]

I need help in setting up an LLC for my real estate business. I do not want to own another home under my personal name but wants to use an LLC to own it. I am basing Dallas Fort Worth Texas. Any recommendation will be greatly appreciate it. Thank you

[Account Closed]

I set up 5 LLC's last year and cancelled all 5 of them after giving them a little thought. The subject of LLC's comes up about once a week on BP and my story is always the same old thing. There are too many myths that LLC's protect your personal assets. They don't protect you one bit. If a balcony breaks at one of your properties, someone crashes to the ground and dies then their heirs will sue your LLC for that property. Then, when your insurance for that property doesn't cover the $5 million you lost in court the heirs are going after your personal assets (ownership) in every one of your other LLC's and that is very simple to do.

So, the answer is; avoid all the costs for setting up multiple LLC's that require annual fees and purchase an Umbrella Insurance Policy for a few million dollars that covers every property you own. The additional insurance will most-likely cost less and take less annual work than multiple LLC's. Especially, when your accountant or CPA charges you extra for each LLC and then you have to pay the annual costs for each LLC. In California, the fee for each LLC is $800 per year and that can go toward an Umbrella Policy that gives you much better protection.