Legal entities for airbnb rentals

[Jamie Moore]

I'm purchasing several homes in the Lake Tahoe area which will be rehabbed and then put on airbnb. Trying to determine the best way to legally structure the homes. Do I have one company that then owns each home which are placed into LLC'S? I want to reduce liability and also be able to track each with their own accounting statements each quarter. Thanks for any advice!

[Jon Crosby]

Hey @Jamie Moore, I have owned 2 VR's in Tahoe (down to 1 now however due to all the permitting regulations going on in South Lake).   

As you probably already know, entity protection is not really a cut and dry standard, it's a cross reference between the value of the asset, the risk or liability the asset possesses.  It's expensive (especially in CA) and may be overkill then just a simple umbrella insurance policy per home.  

Since you are going to have multiple properties however, you really should seek the counsel of an entity protection attorney that specializes in this.  Ideally you want to find a firm that has Accounting  staff on hand as well;  as the strategy is just as dependent on tax law as it is asset protection. 

I believe a popular option right now is the Wyoming master LLC which allows other LLCs to live within in it even from other states.   But once again, you don't want to 'kill a fly with a hammer' on your solution so definitely give it the due diligence it deserves with a professional.  

Best of luck!