Starting an Airbnb Business
The concept of renting out space through Airbnb is relatively straightforward, but setting yourself up for success requires a little more work.
We don’t think that creating an Airbnb business needs to be daunting, and we’re here to help. We’ve supported over 800,000 people to form a business and provided answers, guidance and support to transform them into entrepreneurs. We’ll guide you through what you need to know to start your Airbnb venture and get it off the ground.
Airbnb Business formation guide
From validating your business and doing the research to filing your paperwork and running your business, this guide will help you out. Read on for some insight into creating your own Airbnb business and becoming an entrepreneur. In this guide we will cover:
Statistics on why you should start an Airbnb business
Choose the right business structure for your Airbnb company
How to find out if an Airbnb business is right for you
Setting up your Airbnb business including location, equipment, employees, taxes, finances, licenses and more
Ideas for the type of Airbnb business that you could form
Where to find Airbnb business groups, forums and support
Proving your Airbnb business can work
Useful online tools for Airbnb business owners
Business plans for Airbnb companies
Why You Should Start a New Airbnb Business
Airbnb has made it easier than ever for people to become hosts—people that rent out property for others to stay at. Airbnb is a ready-made marketplace for guests, with millions of listings around the world. Here are some statistics on the power of the Airbnb industry:
There are over 150 million users on Airbnb
The largest market for Airbnb is in the US, with an economic impact of $34 billion
There have been more than 500 million stays through Airbnb
This is why Airbnb businesses are so exciting — how can you be a part of that success? We're here to help you figure that out.
Want to start an Airbnb business? Incorporate with us, today.
Is Running an Airbnb Right for You?
Before deciding to start an Airbnb business, it’s important to understand the skills and approach you’re likely to need.
A Day in the Life of an Airbnb Host
Here are some of the typical tasks you’ll be performing for your Airbnb business on a daily basis.
Skills Needed by an Airbnb Business Entrepreneur
The following skills will be very useful in your role as an Airbnb small business owner.
What Your Airbnb Guests are Looking For
Airbnb customers, commonly known as guests, are looking for:
Creating a Unique Airbnb Business
When it comes to starting an Airbnb business, you want to make sure that your property and listings are unique, so you can attract customers. You can do this by highlighting certain aspects in your listings:
Validating Your Airbnb Business
Getting started in an Airbnb business is easy, but becoming a success is harder. Before committing too much time, energy and money into your new Airbnb business, it’s important to test the marketplace.
Your Airbnb Business Needs a Business Plan
You might not think you need a business plan for your Airbnb business—after all, if you’re getting guests through Airbnb, and they’re paying, you don’t need a business plan, right? Wrong.
You will also need to look at financial projections for your Airbnb business. What are your expected booking revenues? How much is it costing you to buy and maintain the property? What is your profitability? How much money will you keep in the business to grow it? How much will you pay yourself and others?
Business plans do vary slightly, but they should all cover the following areas:
Choose the Right Business Structure for Your Airbnb Business
Now that you have all the background information for your Airbnb business, it’s time to make it into a reality. That starts by choosing the right structure or “legal entity” for your business. In the US, there are five main business structures. They are:
For more information on the advantages and disadvantages of different types of businesses, please see our in-depth guide. If you’ve still got questions, we’ve answered them to help you choose the right business structure for your Airbnb business.
In most cases, our recommendation for your daycare business would be to create an LLC. We’ve got a complete guide to everything you need to do. LLC formation does vary from state to state, but we’ve got you covered, wherever you are.