Who has been saved by an LLC? Success stories needed

[Chris Simmons]

I am a landlord and am curious how other landlords have fared in regard to protections offered by their LLC. I know what snake oil salesmen - I mean "gurus" say, I know what I've read in books and forums like this and now, due to recent conversations with 3 local attorneys, I know what they say on the matter. I am curious, how many people have really been saved by their llc? I'm talking scenarios where you are absolutely certain that your llc status either stopped a lawsuit from making much progress from an attorney...not just some angry tenant that promised to sue you for their deposit only to fade away. Or even better, successful judgement against you that stopped at your llc and saved your personal assets, or other business assets. Sorry but settlements, either from your insurance or your own pocket don't count. I want legit stories of "if not for my llc, I would have lost everything". Are there any?

[Marcia Maynard]

We have LLCs for business reasons. It defines the way we run our business. It also legitimizes our business entity in a way that makes it easier for us to work with other companies and government agencies.

We own some rental property with other family members. Before we had the LLC my brother-in-law died unexpectedly and our jointly owned properties had to go through probate. If we had had our LLC in place, it would have been much easier on my sister-in-law and ourselves. We wouldn't have needed to pay for property appraisals and wait out the probate process. The ownership of the property would have transferred according to the terms defined in the LLC.

An umbrella policy is insurance to cover losses due to liability. It is not intended to limit liability. It extends your coverage in situations where your auto insurance is not enough, or your homeowners insurance is not enough, or your landlord insurance is not enough. If you have significant assets, it is important to have this type of insurance. I wouldn't own rental property without also having an umbrella policy.