LLC for vacation rental

[Amit Shukla]

If you

- own a short term rental in your name

- have a mortgage on that property 

- self manage 

Do you still create a LLC to manage your rental business or do you manage it under your name and then file income and expenses as part of your tax filing?

I understand that one needs to have separate bank account and possibly credit card to separate rental income and expenses but just asking about from the tax filing purposes. 

[Michael Baum]

Quote from @Account Closed:

Yes the last thing Amit needs is a lawsuit! I would suggest creating an LLC if you plan to own multiple of these so you can grow your portfolio from the LLC. The LLC can offer legal protection, as well as create its own bank account to clearly show expenses used on the rentals.

I agree but and LLC offers good protection for contract problems, but little protection from negligence suits. That is why it is important to keep up on the maintenance.

Some of the things that have happened during the last 7 years of running STRS, loose deck boards, rotten outdoor steps, broken interior hand rail mounts, loose electrical outlet...

Any of those could cause a major accident so they were repaired asap. It is important to have a handy person go through the home once a year.