LLC: Should I set one up for the four months we rent our home cabin?

[Cassie190]

Hi! Looking for some advice:

We own a small cabin in Montana that we airBNB out from June through September (we actually live in the cabin the rest of the year and it's our primary and only residence). For the last five years we've simply used the Airbnb platform, have the payments deposited into a specific personal account, and then I just report the income and pay the taxes when I file in the spring. 

It gets messy, though, and I'm certain there's a better way. I'm certain we could be taking better advantage of write-offs, liability coverage, etc but have always hesitated thinking the effort might not be worth it. Would an LLC still be worth pursuing since we're only renting our home a third of the year? Anybody else who rents their only home out partially have any advice? Are there any other set-ups that might make sense? Or do I just need to drag my butt to a tax professional one of these springs?

Thank you! 

[Fred13]

@Cassie190 Concerning the reporting the income, you do so report it, may be best to keep it simple. As to liability, a separate matter. Consider your state laws concerning that area.

[Lorna170]

@Cassie190   IMO You don’t need an LLC, but you do need to meet with a tax professional so that you can take advantage of certain write-offs on your pass-through income.  

[Kia272]

@Cassie190  An LLC simply separates your personal assets from business assets, so if something happened to a guest, they'd sue the LLC instead of you personally, although I'm sure there are loopholes. So, unless you're worth a ton of money and want to keep your assets separated, no need for an LLC. 

The financial implications of an AirBnB rental are exactly the same as any other rental: income minus expenses equals net taxable income. Since you're using your personal home, depreciation and other issues come into play. ANY competent tax professional should be well-equipped to handle that. You'll need to keep good records, as the income/expense calculation is based on a partial year.