Hi, I hope this message finds you all in good health. I have been hosting on Airbnb for a couple years now having multiple properties in the city of Chicago. I'm thinking about going even bigger this summer and getting even more properties. My question is, would it be worth setting up an LLC for my Airbnb account? If I do set up an LLC, would I have to create a new account or can I replace my name and account with that of the LLC? Thanks in advance and would appreciate any and all input in regards to this topic.
I believe you can set up an LLC and keep your Airbnb account with your name, as host. If you want to change your SSN for an EIN I think there is a way to do that in the Accounts section.
Hey I just noticed the new post. Yes I did end up setting up a business and just switched my SSN for the business EIN number.
I just managed to complete the process for setting up all my AirBnB activities through an LLC.
First step is to register your LLC and get an EIN number. I highly recommend sole proprietor, which greatly simplifies numerous steps in the process (i.e. with setting up insurances and business bank accounts)
Second step is to set up a business checking account under the name of the LLC and your issued EIN.
Then go into your AirBnB account on a computer (not a mobile device) and click on your mug shot in the upper right corner to get to your account settings. Choose Payout Preferences, scroll to the bottom, and click add US taxpayer. As an American citizen you choose W-9. There you enter the IRS info for your LLC EIN number.
Finally, for payment method, you set up bank transfer / direct deposit from AirBnB into your new business checking account.
This covers the tax accounting part of your AirBnB "business," which can potentially provide tax benefits. Plus it simplifies accounting of your income and expenses from your rentals when filing your taxes.
Liability protection is another benefit of an LLC, however, that requires more complicated legal paperwork. A title company / lawyer can assist transferring your rental property title into the LLC for asset protection.
I have an LLC set up, but I'm a little confused as to how my Airbnb hosting account needs to be set up in relation to this. We're doing this for tax benefits and Airbnb only does payouts to the business account. Does this mean my account needs to be switched to a "company" account or can it stay as an individual account with all my payouts/tax infor going towards the LLC?
Any help would be appreciated!!