This means that you will probably need to pay registration and filing fees in at least 2 states if you don’t buy CA property as a CA resident.Any lawsuits should be limited to the assets of the LLC and not your personal assets (assuming you run the LLC appropriately and the corporate veil is not pierced, some debate as to SMLLC).

Lawsuits are stressful and time consuming.

So, when (not if) there is a claim, your insurance company will assign counsel and fights the lawsuit on your behalf. 

I was thinking along the lines from an lawsuit protection aspect in using a WY LLC .

There are a bunch of owners on board with me but we are not a rich building where we can afford to be bleed out by a crappy lawyer or spend tens of thousands of dollars in legal fees and have this guy weasle out which he's somehow managed to do in another lawsuit brought by an owner several years ago who caught him not paying his HOA dues.

How many times I'd have to call my employers client to HAVE ACCOUNT YANKED to AVOID LAWSUITS! 

It had an ADU that wasn't permitted, and the pricing was based off similar homes in the area with a mother-in-law suite/carriage house type setup.

I was just thinking in the incredibly unlikely situation I had a lawsuit that required me to sell this property they could be locked into a below market lease for 2 years.

With building an ADU, I feel like the juice is never worth the squeeze.In Denver there are a lot of basements that can be turned into mother in-law suites by adding a small kitchen.

Once the buyer fails to close, the auction house (in the case of the lawsuit, Hubzu) starts going down the list of other bidders.