Mainly:pro: asset protection, anonymity (depending on the state), estate planning (fair value gift tax exclusion every year)con: creation and maintenance cost, limit the ability to get mortgage, bookkeeping and tax reporting cost, proper use to avoid piercing the veil.LLC is not a replacement for liability and umbrella insurance.

Umbrella policies are even better.

Wit that being said, utilize debt as protection and maintain a good umbrella insurance policy to combat potential liability.

I've heard a number of different suggestions on whether an LLC is even needed and/or just have umbrella insurance. 

Just get yourself a good personal umbrella policy and that should be just fine.

Thanks Will.The building is in an LLC and I do have a 1 million Umbrella (plan to increase this as I pay it off to 2-3mill?)).

This way all properties are also included under our $2mil umbrella policy, for extra protection. 

Umbrella policy?

As part of the Governor’s Reorganization Plan (GRP2), which was adopted last summer, the DRE will become the Bureau of Real Estate (BRE) and will be under the umbrella of the Department of Consumer Affairs effective July 1st.

We put the rent checks in a joint bank account and have an umbrella policy to cover the properties.