AirBnb is asking whether I want to set up a company account - and I do in fact host as part of a business. Does anyone know the pros and cons of setting up a company account? - as I’m unable to anything in Airbnb help…
Thanks!
I’m interested too. Our property is our second home for retirement, but it is held in a business and managed like a business, not a hobby. So i’d love to hear why “tools and features” help.
@MikeBozeman - I believe you own or manage numerous properties - can you answer this question?
Our previous listing was part of our 401k portfolio so we listed it as such with AirBnB. The difference in listing it this way is that we didn’t get a 1099 from them at year end since we will be taxed on earnings in the 401k on disbursement. (Sorry, I know this is likely only relevant to hosts in the US.)
There weren’t any special “tools” offered in 2016 when we started that listing so I’m wondering, too, what this new designation is about.
I’m curious, too, if anyone has a shared-home listing setup and has their earnings going to their LLC and what the pros and cons are.
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I started it and then decided it could lead me somewhere I do not want to go so am waiting to hear from others.
I don’t list as a company, and manage a few of my own listings and some for clients. I pay taxes through schedule E and C. Also state lodging and facility use tax, through quarterlies. I personally wouldn’t trust and/or register ABB enough to register like that through them, especially in a place where there are regulations against STR’s.
It’s weird, because I have never gotten a 1099 through ABB. If I did, then I must have missed the notification (which is possible). For me it is as easy as just getting out my quarterlies and basing my income off of those. But I don’t know what this ‘listing through a company’ option is. I may have missed it, as I have 3 other people who have access to my account on ABB.
I think I’ve said this before, but I use my clients to set up accounts for their own property then I manage those. I do this because we got hit very hard with regulations, and I can’t babysit their properties in terms of making sure THEY comply as owners, so maybe that’s why I haven’t seen this pop up yet? It’s now a misdemeanor to operate without registering. Some owners don’t want to offer certain items, which I would consider essential, and so I don’t want to get hit with a negative review, and have my personal properties suffer. I have not met an owner who isn’t ok with that.
So I am now in the process of forcing my clients to register their property, or pay me to do it. If you registered as a company through ABB, I can see another problem, which is a municipality or county regulator, just logging right in to ABB, clicking your profile, and fining you for each STR you manage which is unregistered. It’s like $500/listing over here.
Just use an llc, on your own. ABB wants you to be completely dependent on them, and so they will offer some “services” like a cooler looking calendar or something. As we have seen with SH status, none of that really matters when it comes to making money on their site.
@TuMo -
What do you mean about your previous listing being part of your 401k? Did you use a “roll-over business startup” to fund it? We are looking into using some of our 401k to build a new place, but are concerned about the tax rates of a C-Corp and dividends vs an S-Corp.
@PitonView
Since my husband is self-employed with no employees, and I, the spouse, am his bookkeeper, we were able to create a self-directed 401k and roll our 401Ks into it.
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@TuMo -
That’s basically what we are looking into. We’re about ready to retire, and want to form a C-Corp and roll over some of our 401k into it, then use that (plus some of our own money) to build. We’ll be the managers of the business so we’d be self-employed, too.
Any advice? Would you do it again?
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No regrets. You’ll want to read up on the rules, though.
Here’s a good book I just ordered for myself:
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Same. Buying my first property with my Solo 401K funds.
@Jetty401 - I’m not very familiar with Solo 401k’s, but in my brief reading on them it appears that using the property as a rental for short-term rentals such as AirBnB may not qualify. Hopefully, you’ve either researched this extensively and are familiar with the retirement tax laws to be comfortable that this is allowed, or you’ve consulted a tax advisor/attorney/CPA - whatever is the most appropriate.
We’ve decided the rollover business startup (using our 401ks - not solo 401ks) won’t work for us - we’re interested in cash flow to supplement our retirement income. Since the business has to be a C-Corp, any cash left over is distributed as dividends or share buy-backs. When the 401k owns all of the business, dividends and share buybacks don’t put cash directly in our pocket - we have to pay taxes on them AGAIN to get them out of the 401k.
Yes, you can buy real estate and STR the property with a Solo 401k as long as you don’t use the property for your own enjoyment or hire relatives, etc. But, the earnings do go right back into the 401 and then they are taxed at distribution.
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Yes, this is investment only… my direct Family line will not be able to use this property.