@Account Closed -- your statements here are a little misleading in my opinion. I will tell you that in Texas there is significant litigation advantage if an LLC is in place. Piercing the corporate veil is a very difficult process here. Taking some basic steps to separate your personal assets from your investing life can make a world of difference when the walls fall in.
You do make a valid point about insurance. Many issues can be solved by insurance. But a blanket statement "that the best way for an investor to go is with a good insurance policy" and that investors should stay away from LLC's is a little reckless.
Everyone's business, personal assets, and goals are different. There is a place for trusts, LLC's, insurance, Limited Partnerships, d/b/a's, etc. Everyone should consult with a good local attorney or good CPA or both when setting up their investment strategy. Most initial consults only costs a few dollars or are completely free.
It might save you some headache down the road.
