Forming an LLC in CT - Worth it?

[Michael Lebeau]

Hello all! 

I have been back and forth on the idea of setting up an LLC for 2 rental properties (each 3 units) I currently own. I live in one of the units with my family.

I've been doing some research on pros and cons of setting up an LLC and I'm seeing the cons > pros at least here in CT... I would love to hear some advice from locals if I have any info wrong

The cons I am hearing;

1) Cost - Creating this on my own through legalzoon I'm seeing a minimum startup cost of $525. CT (245$ Annually cost) 

2) Lending to a LLC - I read a source that mentioned banks would not lend out to a property that is in an LLC - for example; I took a 2nd mortgage on my 1st property in order to have a down payment on the next property. Would I really be unable to do this again if my properties are in a LLC?

3) Taxes costs - Costs extra to do taxes

Pros; 

1) Protection of Assets - I have an umbrella policy on my 2 properties.. would this defeat this benefit? I understand the umbrella is under my name and the LLC would be separated from my name if anything ever happened but what are the chances of a lawsuit exceeding my umbrella

3) Tax advantages - Would love to hear how this is helped others locally

So my real question here to others in CT... have the pros outweighed the cons and how much at the end of the year have you really put up roughly out of pocket to run an LLC? 

Thanks in advance for the feedback!

[Kevin Dureiko]

looks like it’s gone up! Lol not a shock! 

Super easy right!