Most of my wealthy clients have their ranches/land in a separate legal entity whether it be a LLC or a corporation. I have one client who has his house in town in a separate LLC! My understanding that they do it for liability, tax and estate planning purposes. I am not an expert on formation of LLC's but I do know you have to have a managing member (like a general partner of a partnership)and members. Most of the structures I have seen have a Managing Member (usually another LLC) who owns 1% of the LLC and them the members who own 99%. (Another reason people hate lawyers is that they think up structures like this. so this is maybe why you were told there needs to be two parties. A LLC looks more like a limited partnership than a corporation. Usually the LLC ownership rolls up to a family trust. I have found that the wealthier my clients are the less they own in their own name.
I am just a salaryman breaking rocks and selling hours so I don't know a lot about these structures. I do know that they will not protect the owners if the structure is not respected as a separate entity--a concept called piercing the corporate veil and alter ego--but that is a new issue with about five or six issues and sub-issues. (and on it goes).
It is usually cheaper for us mortals to protect ourselves with insurance rather than fancy legal structures where you have to pay your lawyer to set it up. This is true unless your tax accountant can show you some tax advantages to offset the cost of creating and maintaining the structure.
