More protection than an LLC ???

[John M.]

I'm curious what everyone does to protect themselves from lawsuit when investing in rental properties.
I see that just about everyone does an LLC, but looking around on the internet, I also see people talking about things like: Irrevocable trusts, living trusts, and doing your LLC in states like Nevada, Delaware or Wyoming where the laws favor LLC owners.

Does anyone here do anything beyond just an LLC + Umbrella Insurance?
Any advise/recommendations?

[Ann Bellamy]

Originally posted by Joe Bertolino:

Originally posted by Curt Davis:

You dont even need to have them in an LLC, you just need a good umbrella insurance policy. Some people go to the extreme to have a separate LLC for each property. Have fun paying the LLC yearly renewal fees and see what a drain on cash flow that is!!

I usually only see separate LLC's when different investors are involved with each property. The best bang for the buck is a single LLC and the highest umbrella limit you can afford. The $800 per year it costs to maintain one separate LLC will buy a $3-5m umbrella.

John M., the comments above will also be dependent on the cost of an LLC in Virginia.

In Ca, where Joe Bertolino is, LLC's are $800 to register plus $800 per year. But they may not be that much in VA. For example, in NH they are only $100, so are a bargain.

You also mentioned having a Nevada LLC or something similar. I have never heard yet where that is helpful, because you still will have to register your LLC as a foreign company in the state where you are buying property, thus incurring double fees every year: 1 set in Nevada, and then the fee in VA.