As an Air B&B host, should I get an LLC?

[Kim-And-Don0]

I am fairly new to hosting. What legal/ business implications are involved? Do I need a business license ? Should I obtain a LLC? Should I open a separate business account for deposits? Is the liability protection Air B&B offers enough? Am I legally responsible to report to my home owners insurance company the fact that I rent rooms out? Will my insurance go up because I do?

[Helen3]

No idea what an LLC is @Kim-And-Don0 

Why not speak to a local accountant and get an initial consultation to ask on the best way of setting up your business.

Your city or town council will be able to tell you whether you need a business license.

Home insurance won't cover airbnb you need specialist home insurance for short term lets. You are not legally responsible for telling your home insurance but having STRs will invalidate your insurance so you need an insurance policy that covers you.

[Ann72]

@Helen3 is right on all points, @Kim-And-Don0   Your town might require a business license:  http://www.townofmcclellanville-sc.net/Guide/guidenew.pdf

My accountant set up an LLC for my Airbnbs and I run every expense and receipt associated with running the houses through QuickBooks.  If your LLC shows a loss, that's applied to your personal tax return and reduces your taxes for the year.  My homeowners insurance is in the name of the LLC and it covers short-term rentals.  Not every insurance company offers policies that cover STRs, however, so your insurance broker will need to find that coverage for you.

[Lisa723]

@Kim-And-Don0 

Do I need a business license ?

Depends on your location. Consult an attorney and/or CPA.

Should I obtain a LLC?

Possibly, depending on your assets and your need to protect them.  Consult an attorney.

Should I open a separate business account for deposits?

Yes.

Is the liability protection Air B&B offers enough?

No.

Am I legally responsible to report to my home owners insurance company the fact that I rent rooms out?

Probably required by the terms of your policy. Not a legal matter, but you could invalidate your insurance.

Will my insurance go up because I do?

As others have mentioned your current insurance may not cover STR activity at all, so you may need to find a new provider.