LLC for Vacation Rental?

[Renee House]

Hi All,

My husband and I just purchased a home and are planning to rent out half of the house on Airbnb. Based on the market we're hoping to collect at minimum $2000/mo but could be higher. Our mortgage is higher than our income on the rentals will be (since we're also living in a large part of the house). We've been advised to start an LLC to protect our assets. My questions are...

-Is it advisable to create an LLC or should we go with a good umbrella policy?

-How much does it cost in California to start and maintain an LLC? Obviously we would reach that $800/year tax, does this mean it would be free to maintain?

-If we do our research, can we set it all up on our own, or do we really need to hire a lawyer and/or an accountant to go through it with us (I know we're not the first to do something like this, so it seems like we could just follow the lead of everyone else doing the same thing as us)?

Any other tips as we start this process are greatly appreciated! Thanks!