Incorporating an LLC for your Airbnb to protect your personal assets?

Lydia76
Level 2
Austin, TX

Incorporating an LLC for your Airbnb to protect your personal assets?

Has anyone incorporated their airbnb business to protect their personal assets? Did your home owner's insurance change when you told them you were doing Airbnb?????

7 Replies 7
Kevin1165
Level 2
Chesapeake Beach, MD

It makes sense to setup my Airbnb property as an LLC to protect my personal assets. I'm wondering if there are some collective statistics and examples of any lawsuits involving properties, and what the outcome to the owner was. Did they lose their home, their savings, their retirement?

 

There must be a resource out there that answers more questions and makes recommendations

Barb29
Level 2
Colorado Springs, CO

Good question. I am looking into this option as well. I already dealt with my insurance-they didn't really have an option for nightly rental but cover it as a short term rental which upped my policy by about $300/year.  I also upped my liability coverage which is included in that extra amount.

It seems logical to do this to protect your other assets. Fortunately I purchased this property through a local bank that I know will work with me however, changing "ownership" to that of an LLC might be an issue with your mortgage holder.  Not sure how to approach that;maybe the anonymous call to pose a "what if" scenerio.

Please update us regarding any information you find out regarding this option and I will do the same.

Thanks

 

Donna163
Level 2
San Diego, CA

My airbnb property is in a LLC. I purchased addtional insurance for liabilty etc , this had to be commercial insurance policy for short term rental for 5 houses (A bungalow court - considered commercial property). It wasn't easy to get, but was doable. My goal was to insulate and protect myself and my assets and an addtional cushion of protection for guests. Best of luck! 

Ken2458
Level 2
Littleton, CO

When you set up your account, is the LLC different than a personal account?  We set up the personal and then formed the LLC and Airbnb has no clue what a LLC is.   I did not know if it was set up differently.

 

Thank you for this great information on the LLC.  My question is does the LLC pay as an employee, which would allow the amount you want to claim then the LLC is a holdings company. I

Jackie117
Level 2
Arlington, VA

HI Donna, what state do you live in? what company do you use? We are planning to open an LLC for our airbnb property in 2018 and would want to insure it as such as well. We only rent our property six omonth out of the year due to weather concerns.  Thanks for any information. Jackie

 

Donna163
Level 2
San Diego, CA

My property is in San Diego California.