LLC FOR DUPLEX YES OR NO?

[Account Closed]

In process of closing on first multi fam residential property, a small duplex (house hacking.) just a question on forming a LLC.

-Is it smart to get property under LLC? If looking to depreciate, write things off etc?

-how would it positively affect me? Or hurt me for just having 1 property under me? (Will be pursuing more.)

-can you later change to LLC?

-what other options would y'all suggest? 

Thank You BiggerPockets :) 

-Adrian 

[Thomas S.]

Best option is to simply have adequate insurance coverage (must have anyway). A LLC will not provide any better protection at your point in investing and will only increase your operating costs and make it more difficult to get financing going forward.

Insurance is the real protection, LLC is more for psychological protection. A LLC is primarily your irrational fear factor policy.