Legal structure for AirBNB income
Hi all,
any thoughts on whether LLC or S-Corp for Airbnb income? I'm thinking of an LLC taxed as an S-Corp.
Also, I'm looking to buy my first rental property with my father. We'd both put up half of the equity-- would I just need to create an LLC on LegalZoom and put both our names on it?
Most Popular Reply
Hi @Alex M., if you are talking about one property I don't think you need to worry about LLC at this stage in the game. Just do a joint tenant deed with your dad and get a $1M liability rider on your insurance and you should be fine...in my humble opinion. Once you get to 2 or 3 or over $1M in assets then it might be worth exploring more structured asset protection.
I'm no expert by any means, but I just hate seeing people over complicate asset protection because they listened to too many podcasts or guru articles on the topic. Ever investor situation is different however and you should make your final decision only after a discussion with your accountant and a real estate attorney to be safe.
Best of luck to you on your STR journey!
Cheers and Happy Holidays!