To LLC or not to LLC, that is the question

[Amy-and-Brian0]

Our property is pretty much strictly used to rent out to people for making some extra dough - a side business really.

After reading here as well as other places about the horrors that can happen, we are concerned enough to start investigating an LLC to put our property in. 

It's extra overhead, a pain to deal with and frankly, I'm not sure what all else. 

But it does seem to shield us from that one person coming in and taking everything we own because of a slip and fall and an agressive lawyer.

What do you guys do and why?

And what are the implications re: AirBnB if we do go the LLC route?

[Carl5970]

Hi @Beth325 and @Liz553 I have a Homeowners Policy with Travelers Insurance and I updated my policy to account for AirBnB and added a $1mil Umbrella onto my account.  Very easy.  

[Liz553]

I just figured out how to find my notifications. So travelers insurance will cover short term rentals?

[Tracy1259]

I'm spending almost $2,000 for $1M coverage in Florida.  Can you pls share your insurance company?

[Emilie]

Hi @Tracy1259, 

As this is a discussion from a few years ago, it might be worth asking your question in a new discussion so other hosts can more easily see it and advise:  👉 start a new conversation

Have you checked as well if there is a local Host Club near you? It would be a great way to ask hosts in the area for more recommendations! 👉 Local Host Clubs

I hope this helps 🙂

Emilie

[SAm8891]

Deciding whether to move your Airbnb hosting into an LLC is a big step, but it usually comes down to how much you want to separate your personal assets from your rental risks. I found that having a formal business structure gave me much more peace of mind, especially when dealing with guest liability or property damage issues that standard homeowners insurance might not fully cover. It also makes things a lot cleaner during tax season since you can easily track your hosting income and expenses through a dedicated business bank account.