Rental property, what are the pros/cons of forming an LLC to place your rental property into? From my understanding, it shields you from liability but wouldn't an insurance policy/umbrella take care of that to a pretty solid degree? Does it allow any excess benefits from a tax perspective?

From a structural organization perspective, it makes sense that an LLC would limit your exposure to only the assets of the LLC which is great in the case that a claim would exceed your insurance/umbrella. Obviously creating an LLC has expenses that go along with it: business formation, accounting services, and depending on your set up the transfer of the property into the LLC. I'm trying to make sure I'm not missing anything but it doesn't necessarily seem like an LLC is more beneficial than just increasing your insurance policies.

Submitted June 06, 2017 at 12:28PM by DesignSmallEmpires http://ift.tt/2rIjZXz