For short-term and vacation rental hosts

A listing is a business. Set it up like one

A short-term rental is a small lodging business. It needs the right entity so a guest injury does not reach your personal assets, a local permit in most cities now, and lodging tax handled, even when your platform quietly collects only part of it. We set up the structure and keep every listing compliant.

LLC holds the property STR permit filed Lodging tax handled
The setup behind short-term and vacation rental hosts LLC holds the property STR permits filed 4.9 from 8,200+ reviews Lodging tax reconciled
LLC
Holds the property so a guest claim stays contained
STR permit
Registered with your city, where one is required
Lodging tax
Handled where the platform does not collect it
Per listing
Each property carries its own permit and tax setup
The gaps that catch hosts

The platform hides how much is still on you

It is easy to assume the platform handles everything. It does not. It collects some lodging tax in some places, often only the state portion, leaving city taxes and registration to you. It does not get your short-term rental permit, and it does not put a business between you and a guest who is injured on your property.

We form the entity that holds the property, register the local permit, and set up lodging tax so the part the platform does not collect still gets filed. Your listing stays live with nothing quietly building up behind it.

Just listed and hoped
  • Property held in your own name
  • No short-term rental permit
  • City lodging tax never registered
  • Assuming the platform collects it all
  • No idea about the 14-day rule
Set up on File.Business
  • An LLC holding the property
  • Short-term rental permit filed
  • Lodging tax registered where needed
  • Platform collection mapped, gaps covered
  • Income reported on the right schedule
Hobby or business? And who owes the tax?

Drag your nights, see where you land

Set how many nights a year you rent and whether your platform collects the tax. The 14-day line is where a hobby becomes a rental business.

Nights you rent per year 90 nights
14-day line
060120+
A rental business
Report the income, and lodging tax applies
Does your platform collect lodging tax in your city?

Even when the platform remits, it is often only the state or county portion. We confirm exactly what is collected for your address and register you for anything left, like a city tax. You still need the local STR permit, which the platform never handles.

A guide, not tax advice. The 14-day rule and Schedule E versus C depend on your facts; we set the structure up and flag what to confirm with your accountant.

How your listing gets set up

From a spare room to permitted and protected

Five steps, in the right order. Select one to see the detail.

Step 1

Form the LLC that holds the property

Guests staying in a property you own is exactly the risk an LLC is for. Holding the property in an entity separates a guest claim from your personal assets. We form it in the property's state, with fees passed through at cost.

A guest claim stays with the property, not you.
Entity: LLC FORMED
Personal assets separated
Ready to hold title
Step 2

Get your EIN and business banking

The EIN is the entity's tax ID, and a dedicated account keeps payouts, cleaning, and expenses per property separate from your personal money, which is what keeps the LLC's protection intact.

Separate books per property, not commingled.
EIN: ISSUED
Business banking opened
Ready for payouts
Step 3

File the local short-term rental permit

Most cities now require an STR permit or registration, and some restrict rentals to a primary residence, cap the nights, or limit them by zone. We identify your local rules and file the registration so your listing is legal to run.

The permit the platform never gets for you. Business licenses.
STR permit: FILED
Local rules checked
Legal to operate
Step 4

Set up lodging tax, including what the platform misses

We map exactly which lodging and occupancy taxes your platform collects for your address, often only part, and register you to remit the rest, so the city tax and any gaps are filed on time.

The part the platform does not collect, covered. Tax registration.
Lodging tax: REGISTERED
Platform collection mapped
Gaps covered
Step 5

Renew everything, and add the next listing

STR permits and lodging tax accounts renew and file on their own schedules, and a lapse can get a listing suspended. We track every renewal, and when you add a property, we repeat the whole structure, often as its own LLC.

Renewals and the next listing in the calendar.
Renewals: TRACKED
Second listing ready
Never a lapse
How this compares for a host

Built for a lodging business, not a generic filing

Most setups skip the permit, the city tax, and the per-property entity. Here is the difference.

CapabilityFile.BusinessDIY formsThe platform aloneGeneric filer
LLC holding the propertyForms onlyNot availableFormation only
Local STR permit filedNot availableNot availableVaries
City lodging tax the platform missesNot availablePartialPer filing
Per-property or series structureNot availableNot availableExtra fees
Permits and renewals trackedNot availableNot availableNot available
Transparent, published pricingFees varyPer filing

The honest version. A good accountant is worth it for the Schedule E versus C question and depreciation, and an attorney for a tricky local ordinance, and nothing here is legal advice. What File.Business does is form the entity, file the permit, set up lodging tax, and track renewals, so your specialists handle the hard calls. Compare on the comparison hub.

BosAI for hosts

An operator who knows the host playbook

Ask in plain English. BosAI knows permits, lodging tax, and the 14-day rule.

BosAIOwner workspace, Cedar Cove Rentals

Airbnb says they collect the taxes. Am I done?

Not quite. Platforms collect lodging tax in many places, but often only the state or county portion, not the city tax, and not everywhere. For your address they collect the state part but not the local occupancy tax, so I have you registered to remit that piece. And the tax is separate from the permit, which they never file.

I only rent a couple weekends a year. Do I even owe tax?

You may be under the 14-day rule. If you rent your home fewer than 15 days in a year, the IRS generally lets that income be tax-free, though you also cannot deduct expenses. Cross 14 nights and it becomes a rental business you report. I am tracking your nights so you know which side of the line you are on. Confirm the details with your accountant.

I want to buy a second place. Same LLC?

Usually its own. Many hosts give each property its own LLC so a claim at one listing cannot reach the other, the same logic real estate investors use. In states that recognize it, a series LLC can do this under one umbrella. I can set up the second property either way and add it to your portfolio view. See series LLC.
From a host

The city tax I did not know I owed

I thought Airbnb handled all my taxes until my city sent a notice about unregistered lodging tax and a missing permit. File.Business moved the property into an LLC, filed the short-term rental permit, and registered me for the city occupancy tax the platform was not collecting. When I bought a second cabin, they set it up in its own LLC. Now both listings are clean and I stopped guessing.
Host
Two vacation rentals
Permit
filed, listing kept live
City tax
registered and current
2 listings
each in its own LLC

Representative composite based on host outcomes. Nothing here is legal or tax advice; consult your professionals for your situation.

For the questions hosts actually ask

Straight answers on entity, permits, and tax

Should I put my short-term rental in an LLC?
Most serious hosts do. Guests stay in a property you own, and if someone is injured, an LLC that holds the property separates a claim from your personal assets. Many hosts use one LLC per property so a problem at one listing cannot reach the others. We form the entity and set up banking to keep it clean. See form an LLC.
Does Airbnb collect the lodging tax for me?
Sometimes, and only partly. Platforms collect and remit lodging or occupancy tax in many jurisdictions, but not all, and often only the state or county portion, not city taxes. Where the platform does not collect, you must register and remit yourself. We map exactly what is collected for your address and handle the rest. See tax registration.
Do I need a permit to run a short-term rental?
In most cities now, yes. A growing number of jurisdictions require a short-term rental permit or registration, and some limit rentals to a primary residence, cap the number of nights, or restrict them by zone. We identify your local rules and file the registration so your listing is legal to operate. See business licenses.
What is the 14-day rule?
If you rent your home for fewer than 15 days in a year, the IRS generally lets you keep that income tax-free, and you do not deduct rental expenses. Rent it 15 days or more and it is a rental business: you report the income and, depending on the services you provide, it may go on Schedule E or Schedule C. We help you understand which side of the line you are on.
Is short-term rental income subject to self-employment tax?
It can be. Passive rental income usually is not, but if you provide substantial hotel-like services such as daily cleaning, meals, or concierge service, the IRS may treat it as a business subject to self-employment tax and reported on Schedule C. The line is fact-specific, so we flag it and recommend confirming with your accountant.
What changes when I add a second listing?
Each property generally needs its own local permit and its own lodging tax setup, and many hosts give each its own LLC so liability stays contained. We repeat the structure for the new property and track both sets of permits and renewals together. See the portfolio view.
Should each property have its own LLC?
Often yes, for the same reason real estate investors do it: a claim tied to one property stays inside that property's LLC and does not reach the others or your personal assets. It does mean separate banking and books per entity. We can also use a series LLC in states that recognize it. We set up the structure that fits your portfolio. See series LLC.
Does this replace my accountant or attorney?
No, and this is not legal or tax advice. A good accountant is worth it for the Schedule E versus C question and depreciation, and an attorney for a tricky local ordinance. File.Business forms the entity, registers the permit, sets up lodging tax, and tracks renewals, so your specialists focus on the hard calls. Talk to us.
Permitted, taxed, and protected

Host with nothing hanging over the listing

Form the LLC, file the short-term rental permit, and let us handle the lodging tax the platform does not collect, across every property. Start now, or talk with our team about your listings.

SOC 2 Type II · Not a law firm · State fees passed through at cost