LP is just the notice of a lawsuit.

In example, $1 million dollar property with $500k mortgage to bank or other lender has $500k up for grabs in a lawsuit.

If a tenant tried to sue me for wanting to change their own locks, I would consider it a frivolous lawsuit and would voice my opinion to the judge appropriately and then petition the judge if he/she thought otherwise and try to get it aired on Judge Judy.

This can also effect your title insurance, so the LLC will need to purchase it's own title insurance for the property.The true benefits that I see for the LLC is that it protects your personal assets in the event of a law suit.

If either of the notices expired, and he is still there, you can start the Unlawful Detainer law suite to evict him at which time you need to summon him to the court and go through the entire process.

When the lawsuits happen, the protection is really going to come from the Insurance not a disregarded entity.

To be able use the money from my rental to pay my personal bills and not have comingle issues, but I don't want exposure to lawsuits either is there any solution?

The second is an experience attorney in this field will know how favorable the judge may be to your lawsuit and desires.

However, keep in mind, a judge may have a different interpretation of the laws than the attorney, which is why all lawsuits are a 50/50 roll of the dice.

The guy lost a law suit and he's trying to dump it before the liens fly in beyond exemptions.