Should I open an LLC for my short term rental property

Question

I’m In the process of closing on a house in Gatlinburg, TN for short term rentals. Should I open an LLC? What are the benefits of doing so?

Luke Carl · Answer

I would argue no. If you’re financing you won’t be able to use an LLC anyway. If you’re paying cash then yes.

Chuck Kramer · Answer

I you are just doing 1, I would say probably not. Just get extra liability insurance. Plus, if you use an LLC, you need to start with it. Too many ways for decent attorney to ‘pierce the veil’ when you convert later.

Alex M. · Answer

If you quitclaim into an LLC, it can void your title insurance. Seek legal help, but I agree with @Chuck Kramer and @Lucas Carl here. For your first, just get some solid insurance. Where will it be located? I see you're a fellow New Yorker

Matt Castle · Answer

I'm not a lawyer or CPA, but they would likely argue yes. Possible liability protection and LLC taxed as an S-corp for tax savings.

Should I open an LLC for my short term rental property

Should I open an LLC for my short term rental property

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