Old question: LLC vs liability insurance

[Robert Warner]

Hi,

I've been looking into this. A number of duplexes in Florida. I could do LLC for each one (annual fees are minimal in Florida) or I could group properties. It would be multiple person LLCs -- so they cannot be pierced unless I am negligent, which I am definitely not. But I'm more concerned just about the hassle of having to keep finances separate for every LLC. As I understand it, this is a very key legal point. Each LLC must be a contained financial entity -- any looseness and other entities and individuals can be gone after.

 As things are now, I can get any repairs or remodels needed, for any property, and just pay whoever out of a single checkbook/credit card. I would rather not have multiple checking accounts, multiple business entities.  But...do I need to?  My only concern really is Mrs. Jones falls down the stairs. I do have some liability insurance currently, but I'm hoping that I could just have a high level of liability insurance, $5 million or so, and that would give me the protection I need without changing my current, simple, operating basis.  Appreciate any comments.