I just purchased a 2nd home in Port Angeles, Washington using a vacation home loan with 10% down. I intend to vacation there occasionally, and the remainder of the year rent it out on AirBnB/VRBO. I have done some superficial research about tax laws in the state of Washington and came across an additional tax paid for STR, and that a LLC is required to file these taxes with the state.
I am requesting some advice with best steps forward. My preference would be to not create an LLC at this time.
It's not necessary but definitely has protection benefits. I personally use an LLC. Our short-term rental company does the rental arbitrage model and we also buy properties to use as short-term rentals. We lease all of our properties to our LLC and we put proper insurance on the LLC and regular homeowners insurance on the property. This gives us double protection for direct bookings and triple protection with Airbnb reservations. LLC's are definitely goal-dependent. We like the protection and the tradeline benefits.
Depends if you want to risk being sued personally and having all of your personal assets on the line. Although, insurance is another protective measure.