What protection does LLC provide a landlord?

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What protection does LLC provide a landlord? Is it effective to limit liability in cases of tenant or government lawsuit?

The cost of maintaining a LLC is minimal if there is no employee. Setup fee might be under $1000.

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Also check land trusts.

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There was a topic on this before. The consensus was protect yourself with an umbrella policy. You’d need a LLC for each property or a lawsuit at one property could lead to losing all properties. That’s bad. Also, if’s much harder to use a LLC to buy properties unless you pay cash or get a business loan.

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For normal tenant lawsuit, umbrella policy might be enough. But not sure about the government lawsuit such as what happened in Oakland SRO lawsuit.

https://www.google.com/amp/amp.ktvu.com/news/2-investigates/protestors-support-embattled-landlord-of-oaklands-empyrean-towers-2-investigates

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Umbrella insurance does not give the privacy though. If somebody wants to sue you, can they use public data to find out your networth, and go after you?

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I was listening to this:
https://soundcloud.com/user-98066669/061-land-trusts-made-simple-with-randy-hughes

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If you buy a house in your name and then transfer to LLC, they can still easily find your identity. Actually even if you buy with LLC, they can always go to state government and find the LLC owner’s identity

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Check the land trust for that - exactly my point :slight_smile:

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In a real lawsuit, sure. But my point was mostly freeriders, people that sue on stupid things.

(I am learning these things recently, so if something doesn’t make sense, let me know).

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UI is a must, think we all conclude that. Coverage is $1M or value of your property.

The issue of whether to get a LLC, for each or all, and where to incorporate is controversial.

@BAGB Did you LLC your property? Care to share why? If yes, your structure?

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If you get LLC for all, then I don’t get how that’s extra protection. An incident at one property would let someone sue for the value of all properties. Doing a LLC for each costs $800/yr in CA (min tax for a LLC). You can get a huge umbrella policy much cheaper.

For a LLC, you’ll pay for the lawyers. With an umbrella, the insurance company pays for the the lawyers.

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Yes, from a cost perspective.

Protect personal assets but didn’t protect assets inside a LLC. Worse, if gross negligence could pierce through the LLC veil. There are other issues which is why I want to know what @BAGB did.

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No I didn’t do anything. Still not sure whether it is worth it.

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That’s why I don’t come here for advise anymore. You don’t learn anything! :rofl:

LLCs are for small minds.:joy:

TRUST me.

Think big

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That’s why I don’t come here for advise anymore. You don’t learn anything! :rofl:

LLCs are for small minds.:joy:

TRUST me.

Think big

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