Learn more about Airbnb business licensing requirements
So maybe you’ve rented your home out on Airbnb for a while, or are just thinking about getting started. No matter where you are in your hosting journey, we’re sure that you see the fantastic advantages of being a host. Going from a casual host to one that’s in the business of hosting professionally is a big jump that takes thoughtful planning, organization and of course, some paperwork. It’s important that you license your Airbnb business with the state in which you operate. Airbnb business licensing requirements vary from state to state, but a lot of the general steps are the same.
You can always just take a few guests each year to make a little extra cash on the side. But, if you want to really make some big $$$ using Airbnb or other vacation rental websites, you’ll need to be properly registered.
There are a few ways to license your Airbnb business including registering it as a sole proprietorship, an LLC, or a corporation. Each has their advantages and disadvantages. The best way to learn more about each business type is to talk to your local small business association. They can also help you register your business, choose a name, and set up your accounting practices. The cost will vary, but business set up usually costs less than $500.
Advantages of licensing your Airbnb business:
Doing the extra work of registering your Airbnb business comes with some benefits. Registering your business means that you’ll have to pay taxes on your earnings, but it also means that you can write off your business expenses to offset the money you earn. Setting up your Airbnb business licensing correctly will let you write off many of your expenses including:
- Office space
- Repairs at your rentals
- New furniture for your rentals
- Mileage and tools for your vehicle
Just remember to keep your receipts for your transactions, so you have evidence of the charge. At the end of the year, you’ll give these receipts to your accountant, and they’ll take care of the rest.
After you’ve finished learning about the Airbnb business licensing requirements there are two more things you should do that can guarantee success:
Sign up for Hosty! We’re the professional vacation management software that helps you run your business with ease. Organize and view all of your rental listings, your calendars, messages, and more all in one convenient place. Ready to get started? Try Hosty today!
No matter the Airbnb business licensing requirements in your state or territory, making sure you do your homework and sign up for the proper business licenses is imperative. Taking the time to form your business correctly is an essential part of being a business owner and will keep you safe in the long run.