Legal protection for AirBnB?

[Oliver Sparks]

I'm curious to know whether it would be most appropriate to have a business (LLC?) for running an AirBnB business, separate from an LLC that is already used primarily for construction and rehab work. I'm wanting to build a system of short term rentals in the midwest, mainly in the Kansas City area. But I wonder whether it would make most sense for liability reasons to track these sorts of business transactions under separate businesses.

I'd also be curious to know what resources other people used to help learn the best way to systematize their short term rentals.

Any advice is appreciated!

[Luke Carl]

@Oliver Sparks first... I would not “Airbnb” in any city. You’ll get shut down sooner than later. Your neighbors will call the cops because someone is puking in the lawn at 2 am. The city will fine you. You’ll be gone in a year.

The exception would be if you have a commercially zoned building and you want to buy the whole thing and “Airbnb” it as hotel competition. But I’m the end the hotels will win. And Airbnb has and will start popping these buildings up on their own and if the hotels don’t wipe you out Airbnb will.

As far as your LLC I suppose that depends on many variables. Do you own the properties are are you starting an STR property management (PM) company? If you're looking to start a company then yes start it with an LLC and get your insurance and get your ducks in a row.

If you own the properties are they financed? Because the bank isn't going to let you finance them as an LLC unless that LLC has tax returns and DTI of its own. Are you paying cash? Then yes buy it as an LLC and self manage it with no LLC.

Lots of variables these are just a few. Typed on an iPhone. Vote button please.