how to avoid a lawsuit

[Marysue Connelly]

HI, I am looking to move my rentals into a LLC. I would like to hear for anyone who has been sued. What worked and what would you do differently if you could?

[Nicole A.]

I'm not sure what you're asking. Even if you do nothing wrong, someone could file suit against you. Having said that, this doesn't happen all as often as someone has lead you to believe.

If you move it into a LLC, you have to be sure that you are truly treating it seperate and not using your personal funds. So you'll need your LLC to have bank accounts, check books, address, everything.

Or you can just keep it in your name and get an umbrella insurance policy.

Also, if you do not have a ton of equity in your property, then you have very little for someone to sue you for... 

You may be over-worrying.