Starting an LLC after two properties

[Jake Belden]

In the past year, I have purchased two properties in the state of Connecticut, but am yet to form an LLC, which I would like to do ASAP obviously for a number of reasons. I have put 25% down on both properties with a credit score on 820 and solid income so no issues there. I will list a series of questions that I would love a long time professional or expert in the field to answer and help someone out that is looking to continue to grow the business in the coming years:

Is it difficult to transfer the two purchased properties over to an LLC? Will I need to refinance and find a new lender most likely, or is it just a simple transfer hopefully?

Should I use an attorney for the LLC or just do it online? I always see cheap pricing online to form one but can I trust that?

Is there anything specific I need to do prior to forming the LLC to make sure I can tax the company completely separate from my actual, personal tax form each year? (I know it is possible, just not sure on specifics)

Is insurance more expensive when under an LLC instead of under my personal name generally?

Will the interest rates go up due to it being changed to an LLC?

Will financing be more difficult in the future under the LLC?

Any other tips are much appreciated but those are the questions that have been running through my head a lot.

[Michael Doherty]

@Jake Belden  this link may be helpful regarding your question. Link to IRS . You should keep all your expenses on your rental separate if you have an LLC. If you get audited you don't want to be caught commingling funds between personal expenses and 'business' expenses associated with your property. When you do your taxes at the end of the year you will file a 1040 form and you should add all your income and subtract all your expenses for your LLC.

The only reason to have an LLC is for liability protection. If a tenant slips and falls they can only go after what's 'in' the LLC. They cannot go after personal assets. It also may be worthwhile to look into an umbrella policy if you choose to not go the LLC route. Many investors choose to have both.