Starting an LLC to get a Short Term Rental license in your city

Regulations/Tax Issues
1

Hello everyone! First of all, thanks for this awesome resource!

I have a question about getting a license to make my property a short term rental on AirBNB. My city in Colorado requires a CO Sales Tax License in order to issue a permit for short term rentals. In order to get that license number, we have to have an official business to register with the Secretary of State. There are a few options, but I’m curious about anyone’s experience with this. Creating an LLC is the obvious option, but I’d really like to explore options before I decide.

Any advice, experience, etc would be greatly appreciated!

Thanks everyone!
Michelle

2

Sole Proprietor is a lot cheaper, easier, and less hassle than an LLC Business

1 Like
5

If I were you; I would visit your local city government office and ask what you need to do. I assume that what you call a Sales Tax number, we in California call a resale permit. You don’t need to be a corporation to have a resale permit. According the the attached you don’t need to be incorporated to obtain a sales tax number. It is costly to become and stay incorporated, so you might want to get the sales tax number as an individual.