Airbnb question, do I need an LLC for only one private room?

[Aahil B.]

Hi everyone,

I am looking at options for getting into the Airbnb business. I just bought a 2 bedroom and 1 bathroom condo and I don't really use the second bedroom. Lately, I have been traveling a lot so I'm rarely home nowadays but I was wondering if I were to put my condo's 1 bedroom as a private room on Airbnb and give the customer access to everything in the unit except my own room, do I need an LLC? and if so do I have to put my property itself in the LLC or just the Airbnb business and leave the property under my name? I have a conventional loan. I spoke with an insurance rep at State Farm and they stated that I would keep the regular insurance I have for my unit and if I am not providing the entire unit for rental then I don't need an LLC but I wanted to hear anyone's input on this and how I would go about it especially since I just bought the unit.

Thank you so much for your help!

[Joel Case]

I would advise you to consult a lawyer for legal advice. I am not a lawyer, but in my opinion, at your stage I would not worry about getting an LLC setup unless you have considerable assets. The purpose of the LLC is to shield your other assets should a lawsuit arise. If you don't have equitable assets then your risk is minimized and an LLC is not needed.