My question involves real estate located in the State of: PA
We were unable to sell our PA home during the housing crisis and instead are renting it out, it is adequately insured (we believe) and being managed by a property management company.
We are not seeking to start a business and quite honestly hope to sell as soon as the market allows. We definitely do not have the stomach to be landlords and are very, very concerned about liability issues and risk to our personal assets (we have had some not so great experiences with lawsuits). But to focus on our specific question:
Does it make sense for someone with only a single house to use an LLC to protect our personal assets? What are the pros and cons? Our understanding is that if the home is under the name of the LLC that any personal liability issues (slip and fall, injury, etc) can only be directed at the LLC and that our personal assets would be protected in the case of a lawsuit against us. But I have also heard that this is a rather ideal description and that in reality the problems with transferring the deed and the name of the mortgage and insurance to the LLC name make it prohibitive for just one house. I have also heard varying things in terms of the actual protection an LLC affords. Thanks.
So to summarize:
-Is it a worthwhile pursuit? Why or why not?
-If so, if our current address is in a different state than the house, should the LLC be in the state that the rental property is in or our residential state?