LLC Setup & Tax Help for Airbnb & Short-Term Rentals

If you earn income from Airbnb, Vrbo, or short-term rentals, setting up the right business structure is one of the most effective ways to protect your assets and optimize your tax situation.

 At Accuracy CPA, we help hosts across Arizona and beyond establish LLCs, manage bookkeeping, and reduce tax liabilities.

 Operating your Airbnb under a Limited Liability Company (LLC) offers several key advantages:

• Legal Protection: Shield your personal assets from business-related liabilities or lawsuits.
• Tax Flexibility: Choose how your LLC is taxed—sole proprietor, partnership, or even S-Corp for advanced planning.
• Professional Image: Build credibility with guests, platforms, and vendors.
• Easier Financial Management: Keep rental income, expenses, and bookkeeping separate from personal accounts. 

We’ll walk you through choosing the right entity structure based on your rental goals and long-term financial plans.

Short-term rental income is taxed differently than traditional real estate—and the rules can be confusing. Our CPA break it down clearly and create a customized tax strategy to save you money. We'll help you:

• Understand whether your rental income is passive or active (this impacts self-employment tax!)
• Properly report income and expenses, including depreciation, utilities, supplies, and mortgage interest
• Navigate local sales and occupancy tax compliance in Arizona and other jurisdictions
• Leverage tax elections like the “14-day rule” or Material Participation Test if you self-manage
• Plan ahead with quarterly estimated payments so you’re never caught off guard at tax time 

Whether you own one rental or a growing portfolio, we’ll make sure your Airbnb business is structured and taxed the right way.

Once your LLC is set up, it’s critical to keep your books in order. We provide monthly or quarterly bookkeeping, financial reporting, and tax filing so your Airbnb business runs smoothly and stays compliant.

          Our bundled packages that include:

• LLC setup with EIN
• Business license and tax registrations
• QuickBooks setup and support
• Monthly or quarterly financial reporting
• Year-end tax return prep (federal + state)

Whether you manage one listing or 10 properties, we'll make sure your financials are clean, optimized, and tax-ready. 

We don’t just understand tax law—we understand the Airbnb business model. We’ve helped short-term rental owners across Arizona and the U.S.:

• Clean up disorganized books
• Structure their LLCs for long-term success
• Avoid IRS red flags and state-level compliance issues
• Maximize tax savings based on how they manage their properties

Get more than a tax preparer—get a partner who understands your rental business.

 While we’re based in Gilbert, Arizona, we work with Airbnb and short-term rental owners across:

• Chandler
• Mesa
• Queen Creek
• Tempe
• Scottsdale
• The greater Phoenix East Valley
• Remote clients throughout Arizona and the U.S.

Q: Should I form an LLC before or after listing on Airbnb?
It’s best to form your LLC before generating income, but we can help you transition mid-year with minimal tax impact.

Q: Will an LLC help me pay less in taxes?
It can—especially if you elect S-Corp taxation or qualify for real estate professional status. We’ll help you choose the best option.

Q: What if I rent out my property only occasionally?
You may qualify for special tax treatment under the 14-day rule, which lets you earn short-term rental income tax-free in some cases.

Q: Do I need to collect sales or occupancy taxes?
In Arizona, yes—and possibly in other jurisdictions. We’ll help you stay compliant with state and local requirements.

Let us simplify your short-term rental journey—from LLC formation to tax savings. Whether you’re managing one property or building a portfolio, we provide the expertise you need to stay compliant and profitable. 

Call: 480.908.8180

Email: info@accuracycpa.com 

Contact us today for a consultation.

Based in Gilbert, AZ | Serving clients statewide and nationwide