We're starting the process for getting our Airbnb going, so we need to jump through Denver's hoops. Out of the gate I have a question... Do we register for the Lodger's Tax ID License, STR Business License, etc. as a business or personal (sole proprietor)? If it's as a business we'd have to go through the added steps of forming a business entity first of course. But Denver only allows one STR so is it worth forming one? Pros, cons or what's the standard route?
First off, congrats on getting into it. I love Airbnb in Denver and think done right, it can be a great revenue stream.
It sounds like you're really asking a tax question. As in, does it make tax sense to register your Denver Airbnb property under your own name or under an LLC? I'll let any accountants or lawyers jump in and answer that.
Are there other factors besides taxes you think should be considered when deciding whether to register as an LLC vs. an individual?
Yeah @James Carlson , the taxation piece is definitely a consideration. I can ask our accountant. I was thinking too from a liability standpoint as well so I suppose I should be asking that of an attorney. And then there's insurance... so I'll ask my insurance agent. Looks like I won't be going through Denver's STR Licensing steps today ;)
You should talk to a CPA. Don't forget about write-offs.
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