How do I set up an LLC for AirBNB?

Answered!
Stephanie365
Level 10
Fredericksburg, VA

How do I set up an LLC for AirBNB?

Hello All,

I have been hosting for a few months now and want to add a layer of liability protection. I want to have guests go through an LLC instead of me as a person. I have already discussed with my insurance company and they have no problem adding my LLC as an additional insured.  I am currently registered with my county under my name for the AirBNB, and I would be changing that over as well. I will be setting up a separate bank account as well.

I will still be owning the home, but the Homesharing (AirBNB) would be going through the LLC.

Has anyone done this and does it cause any problems with my AirBNB listing?

1 Best Answer
Quincy
Community Manager
Community Manager
London, United Kingdom

Hi everyone,

 

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71 Replies 71

I'm in the same boat. My plan was to set up the LLC and then open another account at another bank with the account named __________ LLC. Then have Airbnb send payments to that account. I'd then pay myself and all bills related to my properties from that account. 

Seems it still might be wise to talk to a lawyer first to confirm as well as my insurance agent and possibly an accountant.

I own my properties outright and was told if I get sued, I could lose everything . I was under the assumption that if sued, they could only go after the LLC, not me.

Also my taxes were done the other day is my tax person did say the LLC is the way to go to lower taxes.

Curious to know what you ended up doing ? 
Did you transfer the property to the LLC ? Did you lease your own property to the LLC, this say the LLC does not really own the property and instead just have a lease agreement with yourself as you own the property outright ? 

Traci42
Level 2
Duluth, MN

This is what I was afraid of an did  not want to hear.  My ABB rental bed has a thick foam matress with no pad between it and the 'clean' but not sanitized sheet, Ewww!  I don't want to know how often they don't wash the blankets and spread between tenents.  My host lives in the adjoining home and when I took out dishes to eat from and found them greasy and with stuck on food he admitted he owns a dish washer but doesn't use it  because it "wastes too much water".  The tiny bar sink and plastic dishpan which make up the kitchen are not going to induce milleniels who have all grown up with dishwashers to do a thorough job of cleaning the dishes that the next tenent is expected to eat off of.  Think of 60 - 100 different people eating off those dishes in a year.  Ewww again.  I think these rental schemes are unsafe and only actually make money for the corporation.  Owners properties are used and abused way above the level that long term tenents or owners would typically do.  Sad!

 

James1519
Level 1
Los Angeles, CA

Hi,

 

Currently not sure of what type of business company to form. I have 8 Airbnb rentals but I don't own the apartments. So, I pay the rent back to the building owner. I was told that I should start an S-Corp to be able to write off the expenses which are the rents that I pay and the other expenses. Any help would be greatful. 

Kerry218
Level 1
Midvale, UT

I have considered doing the LLC thing as well, but really want to weigh the pros and cons and from what I read online, if you form a LLC for your AirBnB you will then be considered "self-employed" for your rental business and will also need to pay self-employment taxes for medicare and social security based on the income you make. In addition to the other fees and taxes and the very mild benefits the LLC MIGHT have that can quickly be thrown out the window if someone really wanted to come after you, this seems like another con to me.

Andrea2805
Level 1
Houston, TX

When setting up your LLC for your business what did you use for your business name?

 

  ie., Jane Doe Airbnb?

or just

Jane Doe?

Lynda197
Level 2
Lehighton, PA

Excellent questions.  Where can I get help to do the same?  

Lynda

MaryLou24
Level 2
Tucson, AZ

Can anyone tell me if LLC is required in AZ to host an airbnb?

I used ZenBusiness to create my LLC last year (https://www.zenbusiness.com/llc ) and they make it super easy (almost as easy as creating a gmail account). Everything is online. I like the idea of having an LLC to separate my Airbnb business from my personal assets in case anything happens. Also, it helps me keep a separate checking account and better track revenue and costs.

I found ZenBusiness cheaper and better than LegalZoom 

@Christian2481  thanks for the link! Will check them out. I have 2 Airbnb and my lender suggested creating an LLC that will lease my two Airbnb and therefore I have a lease agreement with them, to show proof of rent. Some lenders wouldn’t take my Airbnb income. However, im worries about the tax implications since we’ll most likely set up as a partnership, so the savings on taxes might be minimal since it’s a pass-through entity and I will need to pay self employment taxes. Any insights?

Quincy
Community Manager
Community Manager
London, United Kingdom

Hi everyone,

 

Please note that this content has been archived.

 

You can still access if if you have the link but it won't appear when you search on the Community Center.

 

To ask a new question just click below:

 

Stephanie_0-1677152405466.png

 

Thanks

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Please follow the Community Guidelines // Volg de communityrichtlijnen