Real estate investing: Becoming an LLC versus being and individual?

I am contemplating becoming an LLC to better "protect" my real estate investment. The question I have is what is the advantage of being a LLC as it relates to personal injury and civil law suits versus remaining an individual owner. I mean doesn't your insurance company handle these matters as an individual owner? What would be the advantage of becoming an LLC if any? Thanks!

The point of the LLC isn't to protect your investment - it's to protect your personal assets.

A PERSONAL liability policy will NOT cover business liabiltiy exposures. Even a BUSINESS liabiltiy policy has a LIMIT to it - so if you have three rental properties, and a $1,000,000 limit, one huge claim can wipe out your coverage for the rest of the year.

The main point is, to not lose your personal assets if your business should go under.

The best place to get advice on this is probably an accountant. But make sure it is one that knows about business tax and liabilities. An LLC is designed to give a layer of protection, and is mostly used in partnerships.

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