LLC for Asset Protection: Good Idea or not?

[Sunjeeve Weerasinghe]

For purposes of Asset Protection, is putting investment rental property in an LLC a good idea? If not what do you do to protect your assets in the event of litigation? Thanks for your time.

[Costin I.]

It is a good idea, but not the only idea. Or, in other words, if you think that's all you need, and not do the other parts of the protection (insurance, management, maintenance, corporate formalities and accounting, etc.) then is like putting an iron front door but leaving the windows open.

Here, a diagram to help you with this question: