LLC for Primary Residence rented on Airbnb?

[Jerome Maisch]

Hi All! My wife and I are buying a primary residence in NY state (single-family in Dutchess County) and want to rent it as a short-term rental (Aribnb/ vrbo/ etc.) while traveling (more than 90 days/year). Would you advise for an LLC even though we'll be living there for more than half the year?

Typically, an LLC would protect us from a liability perspective but risks to hinder our tax deductions. We've also thought about approaching the liability issue with an umbrella insurance or short-term rental insurance. Also, would an LLC be actually considered as misuse of corporate assets?

Eventually, we are thinking about buying rental properties under an LLC set-up with a parent structure that is TBD.

This is at the crossroad of legal, tax accounting and insurance and it has been hard to find an answer. So any help's welcome!