Setting up an LLC for your Airbnb Account

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Setting up an LLC for your Airbnb Account

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.

1 Best Answer

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.  

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10 Replies 10

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.  

Ashish100
Level 1
Tulsa, OK

@Stephan180, thanks for the insight. Did you actually move all your properties to your LLC? is that even required?

Mayra147
Level 1
Orlando, FL

Thanks for the information 

Hi there!

 

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!!

Casey221
Level 2
Tuscaloosa, AL

@Tysha5  what did you end up doing? Setting up my first listing now. The property is in an LLC so I have this same question 

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.

Albert125
Level 2
Jacksonville, NC

Did you actually have employees or was the EIN number the advice of your attorney? 

Zhang1
Level 2
Las Vegas, NV

Hello, I have the same questions, who can answer it? Please share 🙏

David1683
Level 1
New York, NY

Hi Moiz,

 

I basically have the same question.  Was wondering if you set up the LLC and if so how did it work out?

Inanna0
Level 5
United States

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.