topic airbnb business on my schedule C, if I pay my Child w2, do I have to register a company and a EIN#? in Business & farm

airbnb business on my schedule C, if I pay my Child w2, do I have to register a company and a EIN#?

Yongzhangus — Tue, 10 Feb 2026 10:03:50 GMT

I rent out a room in my primary resident as an Airbnb and will report the airbnb income under my schedule C. I have paid my 15 yr old girl for cleaning 3500/yr. do i have to register a company and get a EIN # and pay my kid a w-2? ( I want to contribute my kid's income to Roth IRA).

Re: airbnb business on my schedule C, if I pay my Child w2, do I have to register a company and a EIN#?

Mike9241 — Sun, 14 Jan 2024 07:12:50 GMT

yes because you need an EIN for any W-2s issued. an SSN will not do for either W-2 or 1099NEC

also if you issue w-2s you must file quarterly or annual payroll tax returns for IRS and perhaps your state.

I hope you have a basis for paying her that $3500. (mostly concerned with the rate of pay/hour and documentation of hours performing services).

see this about medicare and fica taxes

https://www.irs.gov/businesses/small-businesses-self-employed/family-help#Children%20Employed%20by%20Their%20Parents

Re: airbnb business on my schedule C, if I pay my Child w2, do I have to register a company and a EIN#?

taxmodern — Fri, 11 Oct 2024 17:08:37 GMT

The other comment has correct info about the need for an EIN.

But your Airbnb income should not go on a Schedule C in most cases. Short-term rentals still go on Schedule E. Airbnb properties generally should not go on Schedule C.

There are only two situations when rental income can go on Schedule C. One is "substantial services" (such as providing meals or daily cleanings during guest stays, which is very rare). The other rare exception is for a real estate dealer (such as someone flipping houses) with incidental rent income during a flip.