Should we acquire an LLC while House Hacking?

[Asare Nkansah]

My wife and I are moving into our house that's south of Denver (Castle Rock) with the intention of househacking it. There's a mother-in-law's suite in the basement that can be accessed through a separate external entrance. 

We are planning on implementing the STR strategy for this one, in the next month or so by putting the basement on AirBnB. I've received mixed advice about whether we need an LLC or not. After talking to a few legal professionals, it seems like we can take two different routes:

1. Create an LLC and put the property under it

2. Get really good house insurance that covers a lot of STR related scenarios and create an LLC after we move out

Ultimately, we just want to be financially protected in case someone sues or something unexpected occurs with the STR. Any advice?