Real estate · LLC guide · updated
How to start an LLC for a short-term rental (Airbnb)
Short-term rentals get a new group of guests every few days, which means more injuries, more damage and more complaints from neighbors than a long-term lease. Cities license and tax them like small hotels. An LLC holds the property or lease, the platform accounts, the permits and the tax accounts, and keeps a guest injury claim with the company.
Our registered agent is optional: $74.25 a year, the same at renewal. Questions first? Ray or Vinny picks up at (954) 470-8356.
- EIN
- STR permit
- Occupancy tax ID
- STR insurance
- Deed or lease
Short-Term Rental businesses in the U.S.
Source: U.S. Census Bureau, County Business Patterns 2022 (NAICS 721) and U.S. Census Bureau, Nonemployer Statistics 2022 (NAICS 721), the latest U.S. totals.
Why short-term rental (Airbnb) owners form an LLC
Guest injuries
Pools, hot tubs, decks and stairs bring the most serious guest claims.
Parties and damage
Unauthorized parties lead to damage, neighbor complaints and city fines.
Permit violations
Operating without a city permit can mean daily fines.
An LLC keeps the company's debts and claims away from your personal assets when you run it as its own business: its own bank account, contracts signed in its name, and no mixing of money. It does not cover your own negligence, and lenders often ask for a personal guarantee. Insurance comes first.
Licenses and registrations for a short-term rental (Airbnb)
Federal items link to the agency's own page. State and local rules vary, so pick your state at the top for your state's business portal. Tick items off as you go; the list remembers your progress on this device.
- We do thisForm the LLC and get its EINAlmost every registration above asks for the company's legal name and EIN, so this comes first. We file the LLC with your state for $123.75 plus the state fee, and can get the EIN for $41.25; the IRS also issues it free online.
Insurance and taxes to plan for
Insurance
- Short-term rental policy
Standard homeowners and landlord policies often exclude short-term rentals.
- Liability above platform coverage
Platform host guarantees are not insurance; carry your own liability coverage.
- Umbrella
Adds coverage above the STR policy.
Taxes
- Schedule C or Schedule E
If you provide hotel-like services such as daily cleaning or meals, the income may be self-employment income on Schedule C. Most STRs that only clean between guests stay on Schedule E. IRS / agency page
- Occupancy tax filing
Register with each taxing agency the platform does not collect for, and file on their schedule.
If you rent a property from a landlord and host it, sign the master lease as the LLC with written permission to sublet. Then the LLC holds the risk and the city permit.
Forming the LLC itself: 7 steps in every state
- 1. Check the name
- 2. Name a registered agent
- 3. File with the state
- 4. Sign an operating agreement
- 5. Get an EIN
- 6. Open a bank account
- 7. Keep it in good standing
The filing office, fee and yearly report change by state. Open your state's step-by-step guide.
What it costs to form a short-term rental (Airbnb) LLC
| Cost | File it yourself | With Vermilion Vitez |
|---|---|---|
| State filing fee (paid to the state) | $35 to $520 | $35 to $520 |
| Filing service, operating agreement included | $0 | $123.75 |
| EIN from the IRS | $0 | $0 yourself, or $41.25 if we get it |
| Registered agent, per year (optional) | $0 if you serve yourself | $74.25 |
State fees as charged at our checkout. Industry licenses, permits, bonds and insurance above are separate and set by each agency. Checkout shows the card processing fee before you pay.
Frequently asked questions
Do I need an LLC for an Airbnb?
Not legally, but it keeps guest injury and damage claims with the company. Make sure your insurance, permits and platform account match the LLC's name.
Do platforms collect lodging tax for me?
In many places they collect some state or city taxes, but not always all of them. Check every taxing agency for your address.
Can I move my home into an LLC to host it?
You can, but a mortgaged home can trigger the due-on-sale clause, and your homeowners policy may not cover it. Ask your lender and insurer first.
What is the short-term rental tax loophole?
When average stays are seven days or less and you materially participate, losses from the rental may not be passive. The rules are specific; use a CPA.
How much does it cost to form an LLC for a short-term rental (Airbnb)?
Your state's filing fee ($35 to $520 depending on the state) plus $123.75 if we file it, with the operating agreement included. Industry licenses, bonds and insurance are extra and set by each agency.
Is this page legal or tax advice for my short-term rental (Airbnb)?
No. It summarizes public rules in general terms, with links to the agencies that set them. For your situation, talk to a licensed attorney or CPA, or book a free call with us.
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Ready when you are
Have us file your Short-Term Rental LLC
$123.75 plus your state's filing fee, with the operating agreement included. Checkout shows the full total, card processing fee and all, before you pay.
Rather talk first? Call Ray or Vinny at (954) 470-8356.