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Updated about 3 years ago on . Most recent reply

User Stats

12
Posts
2
Votes
Levar Burton
  • Lender
  • Virginia
2
Votes |
12
Posts

Do I set up LLC holding company to establish credit?

Levar Burton
  • Lender
  • Virginia
Posted

I live in Virginia and I am getting ready to Airbnb a couple of rooms in my house. I was going to establish an LLC for it. Fund the LLC with a few thousand dollars, get a business credit card to buy furniture for the rooms and then pay off the card with money I made from Airbnb or the money I used to fund my LLC. I would then use all my business related expenses as tax write offs. I then realized two things.

1. I only plan on putting my rooms on Airbnb for a year and then closing the LLC which would mean I have to close my credit card accounts.

2. I plan on moving out of Virginia in the next year or so and I don't want to have an LLC here just holding my credit cards.

So my question is would it make sense to have a foreign entity LLC holding company incorporated in Delaware or Wyoming for my credit cards and then have the Virginia Airbnb LLC under it as a subsidiary? Then when I move close the subsidiary and set up another subsidiary LLC for renting out or Airbnb the next property I buy.

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