Do I need to start a business

[Hugo Tornero]

Hey I’m just buying my first property, I’m thinking about putting it on air bnb. Do I need a business for tax purposes or can I just file taxes as normal but just with the added income of course. Thank you for your knowledge

[David M.]

@Hugo Tornero

No... Look up "sole proprietor." That is the business entity you are doing. If you sell lemondae on the street that's the same thing --- you don't need to "register" a business. You don't even need a separate bank account. I would certainly say setup your bookkeeping so that you manage your expenses. Depending on how you do your str, you (or your accountant) will file SchC or SchE. Take a look at the existing categories there and use them for your bookkeeping. Remember, creating another legal entity, such as LLC or something, doesn't provide any tax benefits unless you are investing with non-spousal partners. in fact, its easier and cheaper to work without an entity. Just make sure you have your homeowners/landlord insurance and perhaps an umbrella liability policy. Good luck.