LLC for your Airbnb?

[Yovannie0]

Does anyone have experience with LLCs? I have 2 investment properties and considering getting my third soon. I heard it is a good idea to have an LLC for this type of investment. Does anyone have recommendations, knowledge, or advice about what should I do or where can I get information? I read and watched videos about it but still have many questions. 

[Alex]

Hi @Yovannie0! 👋

Hope your week is starting well. I found a thread from a few months ago where you will find the best answer with some links related to the topic you are asking about. 👉This is the link to the thread.👈

Also, I know @Karen114  is from your area, so she might have some ideas about these licenses.

Best wishes, 

Alex

[Karen114]

Hi @Yovannie0   I live in Bolton MA.  My short term rentals are in Florida and Mexico.  

You don't need to have an LLC to operate a STR.  What you do need to operate is making sure it's legal where you operate and having the proper licenses and permits. 

An LLC is a nice to have however costly to maintain each year with filings, fees, accounting and bank accounts.  I have many properties and they are not in an LLC.  What I do have however is very good Liability insurance that covers me for the business I am operating, transient rentals.  Very different from a standard liablilty policy and or home owners policy.  

LLCs do not provide the protections that most people think. Any competent lawyer can find you.  A smart lawyer will go for the low hanging fruit and that is your liability policy. 

Hope this helps and best of luck!