Do you run your STR/AirBnB through an LLC?

[Richard Lovering]

Hey BP peeps! Getting ready to purchase my first vacation rental in a ski town in VT. We're familiar with the town and the STR market in town. Wondering for those that run this type of business if you run it through an LLC? I have 11 multi-family units all run through LLC's. I appreciate all your input!

Cheers,

Rick

[Luke Carl]

In my state if you're managing properties from a single-member LLC (no separate federal income tax return) federal taxes would stay the same and would provide a liability shield IF the property were also held in the LLC's name. The LLC however would have to file an F&E return which is based on both the value of the asset and a 6% tax on the "net" income.

To put it simply... don't take advice on this one from the internet. Call a real lawyer that gives you real facts that will hold up in a court of law.