An LLC is for liability protection to protect the assets OUTSIDE the LLC.

However, once you move out and rent both units, forming an LLC might be worth looking into for liability protection.2️⃣ Zoning concerns?

The $10k was put onto a credit card so in essence they spent $10K in asset protection fees to create a liability.

For fippers;  due to high liability falling onto you personally if plumbing pipe pops a fitting after you close/sold to a buyer and you used a handyman to do the plumbing without the plumbing permit AND inspection;  bad things are going to happen.   

My overall question is whether this structure is sound or if we should take a different approach to limit liability. 

I have a mix use building in CT. the ground floor tenant is a bar/restaurant that recently moved in. they got a $2M General liability insurance and is asking if that's enough. or if they should get an umbrella. the property is valued at around $700k, fyi. where can i read up on best practices for such a case?

Paying for it on  card for liability protection, getting warranty/insurance work, pulling permits, lien waivers, etc.2)Get deeper, not wider.

This gives you an additional level of liability protection. 

They want each guest to personally come and provide the information and payment (possibly for their own liability insurance).

I know some people might be hesitant with students but Id take a chance with parental liability.