New to Real Estate · TX · Member since 2021 · 10 posts · 1 vote
Hello, my husband and I wanted to get into real estate, so we bought another home and decided to Airbnb our current home in Texas. I have questions about how to best proceed financially for tax purposes. We set up a separate bank account for all expenses and income coming in, but we didn’t set it up as a business account and we haven’t applied or set up EIN. Is this something that is recommended with only one property? Any advice would be great or recommendations to a pro locally in Dallas. Thank you!
Rental Property Investor · Arlington, TX · Member since 2016 · 706 posts · 611 votes
5y
@Viviana Villegas you may want to reach out to a CPA or tax specialist but if you're doing Airbnb out of a home that you own I would suggest creating an LLC, EIN, and bank account. Then lease your property to that LLC and have your LLC pay you normal rent. You then let the LLC run the Airbnb operation. I talk about business structure quite a bit on my podcast and IG. This is all info I got from my CPA so I suggest you run it by your own but this set up had been very beneficial to our business.