Quote:
Originally Posted by Papa_lecki
Honestly, if you’re renting your home, the house should be in a corporation.
Some people do put other assets into an LLC. For most people, the cost (setting up the corporation, annual filing requirements) don’t make sense.
Also, you can get a liability policy for 7 figures that would protect most people (hint, most people are getting sued).
This is a specific case, of leasing a golf cart, where you can maybe $10k in liability coverage.
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To clarify, LLC stands for limited liability "company". It is not a corporation. You can set up an LLC with a single page form and a fee sent to the state, and they will register the name. You may need to pay an annual fee, but you don't need to do much else for annual reporting, and you only need to provide an owner's name and address. It is a good idea to register rental houses as an LLC, but it doesn't provide as much protection against lawsuits as a corporation would. Corporations require much more paperwork, including named officers, articles of incorporation, tax returns, and annual reports. But, even with a corporation, you do not have complete protection from being sued personally.
A liability policy for $10,000 would not give me any peace of mind. If someone is injured in a golf cart accident, $10,000 will not be of much value in a lawsuit, especially if you have substantial assets.