Help!!! LLC, licenses, permits etc.

[Jeff Oberts]

Hi all! I am very new to the VR business (still in research mode!), and could use your help. My business partner and I are looking to begin this journey by purchasing one VR lakefront cabin in Wisconsin. I could (and probably will!) ask 1,000 questions from now until then, but tonight's puzzler is should we form an LLC? I've read a few people state that an LLC isn't an option if you have a mortgage on the property.

Also, what licenses and permits will we need?  Is it worth paying $99 to a business who researches and notifies us about what permits/licenses we'll need? 

We are grateful for your help, and your precious time,

Jeff

[Luke Carl]

@Jeff Oberts  These questions are market specific and you're not likely to find someone who's active on here that's doing a cabin on the same lake as you. I do cabins in the mountains in Tennessee so I'm happy to answer these questions as if they were asked about my area. 

LLC.... You'll need to talk to a business attorney to find out if this is for you. It is not for me. If you already own the property you'd have to refinance into the LLCs name, if they even let you, so there's another 5k~ right there. My take on it is... if it's financed and you have insurance... don't bother with an LLC. This is an OPINION.

My cabins are not in the city limits they're in the county. So.. I called the county and asked what to do! I had to get a $15 business license and a tax ID from the state to pay taxes. (You have to pay sales tax and occupancy tax on short term rentals. Something that far too many people "over look". They don't last long). 

In my market, in fact in my state, Airbnb just announced that they'll collect and pay our taxes for us starting March 1st. So we're only collecting and remitting from VRBO from then on. I've spoken with VRBO it looks like they are also working on changing this policy. Again, market specific. Just do some googling. 

You will be using Airbnb and VRBO/Homeaway. Two different apps. Most folks find this gets the job done. 

Question is... why do you have a partner and what is their role? If they are providing the money why do they need you? They can easily and inexpensively hire someone to manage their property that already knows the answers to these questions; whether its a simple Airbnb CoHost or Evolve. And if they're not providing money... why do you need them? 

Good luck! Happy to help any way I can!