Should I form an LLC? What is it?

[Kyle Jenkins]

I am about to move out of my Condo and will be renting it. Should i form an LLC or some other sort of bussiness? Why should I? How do I? Thank you!

[Basit Siddiqi]

@Kyle Jenkins

has your condo increased in value from the time that you purchased it?
If it has increased significantly - you may want to consider selling it to exclude up-to $250,000 of gain(if single).

If the property did not increase much in value and you still plan to convert it to a rental - You are not required to convert the ownership to an LLC to claim it as a rental business. Converting to an LLC may afford you liability protection. However, you must be have everything in the LLC's name(title, mortgage, bank account etc) in the LLC's name or you may have created an LLC that does not provide you the protection you think you have.

Umbrella Insurance provides a different type of liability insurance but it can be considered an alternative to an LLC.