Updated about 3 years ago on . Most recent reply
Advice on if forming LLC for STR is necessary
Hi, have an accepted offer on a STR in which we'd form an LLC upon closing. Is this advised? Also can someone explain the due on sale clause risk in this case and how to protect
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John Underwood
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John Underwood
#1 Short-Term & Vacation Rental Discussions Contributor
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You do not need an LLC for one property that has a mortgage on it.
The mortgage is a layer of protection, then insurance, you can add an umbrella policy for a 3rd layer.
Just maintain your property and you shouldn't have anyone one suing you in the first place.