LLC or Umbrella

[akame5150]

I now have five rental SFH in Alabama.  I contacted my tax attorney to ask about asset protection (LLC, S-Corp, C-Corp, etc.).   He told me just to get a million dollar umbrella policy and cover each property at this point which would be fine.   He said if I get a lot more properties or begin buying duplexes and fourplexes, then I should look into the possibility of an LLC.

Because of everything I have read on this site, I am a little concerned I may have gotten some bad advice.  Would I be safe to say I should definitely consider the LLC option or do I take his advice with the umbrella liability policy?

Thanks....

[shark]

an umbrella would do fine for the existing properties that you have. but remember if something happens to a tenant and sues all of your properties are in jeopardy including your home..i know investors that set up LLC's for each property that they own. can get a little costly but remember this is a business and you dont want to take the chance. myself i have all of mine under one LLC...
you didnt receive bad advice just not enough of it
good luck

[mcwagner]

how's that million $ umbrella going to look when little johnny slips on that loose board you didn't repair and breaks his neck.  heck, grannie got $10 million for a cup of hot coffee and a burned leg.

[akame5150]

Good point!!!!!   Thanks and I get the picture :}

[EC]

LLC PROTECTS YOU FROM PERSONAL LAWSUITS !!! IF YOU ARE PURCHASING PROPERTIES THEN I SUGGEST UNDER A CORP KEEP YOUR PERSONAL BUISNESS AWAY FROM YOUR INVESTING

[kdhastedt]

What is with all of the users and the CAP LOCK today??

Please take you caps lock off...in the Forum world, this is the eqivalent of yelling!

Keith
Moderator