LLC really? All the protection or just add umbrella
Have 3 properties including personal house in California, adding a cash purchase of a 8-plex in Youngstown, Ohio in a month. Since I already have a small side business for 6 years, I was thinking it would be a good time to put that Ohio property titled to my business LLC. Get more credit building & some amaninity (public records won't list our names). Consulted with lawyers and here is what they said: Bankruptcy Lawyer said "I represent huge clients with over 1000 doors and 95% of them have the properties in their personal names. If those guys have exposure, it's probably not an issue because they can easily put it title in businesses or LLC.Lawyer 2: "It's not very hard to pierce the veil of protection with LLCs."
Most of the online info on LLCs seem to be sponsored (legal advice/documentation/law firms) or just written with getting eyeballs on the site. It's hard to deny the direct legal quotes I got (see above).
Speaking with my insurance broker, buying 1 umbrella of $400-500 would cover all my personal properties up (up to 5 I think). If I had a LLC holding a property it would need it's own umbrella policy of $350 and separate one for each entity/LLC/social #.
Anyone else deep dive if LLC actually offers the benefits or protections we have all heard about (limits the risk to the business)? Love to hear anyone who has had the LLC fail or just removed. Welcome all LLC & how to use umbrella policy better.