Remember, the benefit of having an LLC is that it offers a layer of protection when it comes to financial liability.
However, if you co-mingle your personal and business finances, you throw that protection out the window. It would be difficult to separate personal and business finances if you are living in on unit and renting out the other. You would need to take extra precautions such as:
- Opening a business account
- Keep a detailed ledger of business transactions
An umbrella policy is different in that it is an insurance that simply pays the claim in the event of a lost legal battle. It can be used to protect an individual or a business, but it doesn’t focus on liability like an LLC does.
Your best option, would be to discuss your situation in depth with a business attorney. LawTrades can put you in touch with a skilled business lawyer that can help you weigh the pros and cons of this scenario. Get in touch today for a consultation.