I am looking at options for getting into the Airbnb business. I just bought a 2 bedroom and 1 bathroom condo and I don't really use the second bedroom. Lately, I have been traveling a lot so I'm rarely home nowadays but I was wondering if I were to put my condo's 1 bedroom as a private room on Airbnb and give the customer access to everything in the unit except my own room, do I need an LLC? and if so do I have to put my property itself in the LLC or just the Airbnb business and leave the property under my name? I have a conventional loan. I spoke with an insurance rep at State Farm and they stated that I would keep the regular insurance I have for my unit and if I am not providing the entire unit for rental then I don't need an LLC but I wanted to hear anyone's input on this and how I would go about it especially since I just bought the unit.
Rental Property Investor · Ocean Springs, MS · Member since 2022 · 349 posts · 301 votes
3y
I would advise you to consult a lawyer for legal advice. I am not a lawyer, but in my opinion, at your stage I would not worry about getting an LLC setup unless you have considerable assets. The purpose of the LLC is to shield your other assets should a lawsuit arise. If you don't have equitable assets then your risk is minimized and an LLC is not needed.
Rental Property Investor · Ocean Springs, MS · Member since 2022 · 349 posts · 301 votes
3y
I would advise you to consult a lawyer for legal advice. I am not a lawyer, but in my opinion, at your stage I would not worry about getting an LLC setup unless you have considerable assets. The purpose of the LLC is to shield your other assets should a lawsuit arise. If you don't have equitable assets then your risk is minimized and an LLC is not needed.
I am looking at options for getting into the Airbnb business. I just bought a 2 bedroom and 1 bathroom condo and I don't really use the second bedroom. Lately, I have been traveling a lot so I'm rarely home nowadays but I was wondering if I were to put my condo's 1 bedroom as a private room on Airbnb and give the customer access to everything in the unit except my own room, do I need an LLC? and if so do I have to put my property itself in the LLC or just the Airbnb business and leave the property under my name? I have a conventional loan. I spoke with an insurance rep at State Farm and they stated that I would keep the regular insurance I have for my unit and if I am not providing the entire unit for rental then I don't need an LLC but I wanted to hear anyone's input on this and how I would go about it especially since I just bought the unit.
Thank you so much for your help!
Short answer is no you don't need an LLC for one property that is mortgaged. Just get an umbrella policy if your concerned.