Loan terms for new LLC

Lightstream for lending purposes.

I'm going to lease a spot. Not a campground, just 1 or 2 hookups.

I don't think the LLC is necessary

You're just using the LLC for an undeveloped piece of land? Single member LLCs aren't protected liability wise in most states. If you have a multi member LLC, you will need to hire a good attorney to draft a solid operating agreement and keep up with the yearly formalities to have solid LLC asset protection. Plus you now have to pay a higher loan %. I don't really understand why unless you're worried about liability or it's a very expensive piece of property.

As Houston said, just get a solid umbrella policy. You can get a good umbrella policy for not that much.

There is a huge thread on bigger pockets where many people weigh in on when the LLC is needed vs just getting an umbrella policy and the pros and cons of each. What I gathered from it is that LLC's are not always recommended or necessary for all situations. If you don't manage to keep the finances clearly separate for both then the LLC won't do you a bunch of good. I'll see if I can find the link and post it.

Thanks for the link, seems that they have several people on both sides of the fence and the subject is about as clear as mud.

This is my take from the thread,

PROS

Protect your personal assets. But it was mentioned that personal residence and retirement can't be taken. Most of my money is in 401k and hell, the bank owns most of the house anyway.

I guess that's the only pro to forming one, right?

CONS:
Can't represent yourself in a lawsuit in some states

Hard to get funding

Additional cost of forming and maintaining it.

Won't offer protection if it's not operated correctly.


Seems like a lot of hassle I don't necessarily need to worry myself with. Especially for less than 10k a year in rent, max.



Thanks for the input.