Which Entity to use for Short Term Rentals?

12 Replies

If you have short term rentals which entity are you using? I've heard LLC and S Corp? What advantages and disadvantages have you come across for these two entities. Thank you!

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Originally posted by @Bruce Woodruff :

We have 2, don't see any need for one. IF we were, I would do an LLC based on past advice from attorneys...seems to favor RE businesses.

Just curious what kind of occupancy rate should be expected. 50% ? 60%? More? Less? Are your STR in the Prescott area?

Originally posted by @Mike Hern :
Originally posted by @Bruce Woodruff:

We have 2, don't see any need for one. IF we were, I would do an LLC based on past advice from attorneys...seems to favor RE businesses.

Just curious what kind of occupancy rate should be expected. 50% ? 60%? More? Less? Are your STR in the Prescott area?

 General Prescott area. More than 60%

Originally posted by @Bruce Woodruff :
Originally posted by @Mike Hern:
Originally posted by @Bruce Woodruff:

We have 2, don't see any need for one. IF we were, I would do an LLC based on past advice from attorneys...seems to favor RE businesses.

Just curious what kind of occupancy rate should be expected. 50% ? 60%? More? Less? Are your STR in the Prescott area?

 General Prescott area. More than 60%

We're thinking 1 STR near Old Town Scottsdale AZ, 1 STR near Bouldin Creek Area Austin TX and 1 in Oak Lawn/Upton Dallas TX each being the resort level experience. Any suggestions on resources for starting up STR's?

@Becky Haag

Usually for STR you would use a Corp as it is an active business.

However to gain the passive income tax advantages, your properties will be owned by disregarded LLCs that will in turn sign a master yearly lease with your Corp that will operate them.

https://m.youtube.com/watch?v=r5-_-_9CFIk

@Mike Hern If  you are thinking about str strategy in Austin with that location then before you make the purchase, you might want to confer with the city. strlicensingataustintexasdotgov. It's highly regulated. 

Originally posted by @Aaron Gordy :

@Mike Hern If  you are thinking about str strategy in Austin with that location then before you make the purchase, you might want to confer with the city. strlicensingataustintexasdotgov. It's highly regulated. 

 Thanks for the head's up.

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