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Moderator
    06/28/08 at 12:27 PM
Reply with quote#1

I am looking into buying my first property. It is a duplex and I plan on living in one side. Is an LLC necessary at this point? Would I have enough protection through good insurance and a good lease?

attorney
    06/28/08 at 12:28 PM
Reply with quote#2

Insurance is your first line of defense. But if the worst happens it may not be enough to cover a high judgment and then you are personally on the hook. A single member LLC will not affect any tax benefits that you will have as a homeowner and it will protect you individually should anything happen that your insurance doesn't cover. A good lease is also necessary, but offers little to no liability protection.

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