Starting a successful bed and breakfast takes more than having an inviting home. One important aspect of successfully starting a business is researching and applying for the licenses and permits that are needed to operate legally.

The question, “what business license do I need to start my business” is a common one, but in reality, a business will often need multiple licenses, permits, and registrations from federal, state, and local agencies.

Related: Guide to starting a bed and breakfast

What Licenses Do You Need to Start a Bed and breakfast?

State Licensing

Many states require bed and breakfasts to register with their taxation department (commonly called the Department of Revenue or Department of Taxation depending on the state). Some states have specific requirements for bed and breakfasts, while others lump B&B’s under general lodging regulations. A few examples include:

In Florida, owners of lodging establishments must obtain a Bed and Breakfast License from the Florida Department of Business & Professional Regulation.

In Georgia, The Department of Human Resources requires an Application for Tourist Accommodation to run a bed and breakfast inn.

The North Dakota Department of Health is in charge of licensing, inspecting, and regulating bed and breakfast facilities in the state.

Local Licensing

In addition to state licensing, licensing at the city or county level is quite common. Not only are there regulations on covenants, zoning, and/or local ordinances, but there may be licensing to operate as a bed and breakfast as well. A few examples include:

In Rock Island, Illinois, a Bed & Breakfast Food & Beverage License is required for a B&B to serve food.

In Denver, Colorado, properties that are rented for up to 29 days at a time will require a short-term rental license. Properties rented for 30 days at a time, a license isn’t required.

The City of Philadelphia requires a Limited Lodging License through the Department of Licenses and Inspections.

 

Additionally, bed & breakfast will need to be in compliance with state and local fire codes and be subjected to regular inspections.

Food Permits

If your bed and breakfast also serves food, your local health department will require a food handling permit.  In order to get a food permit, at least one person will need to be on the property that has obtained a food sanitation permit.

Liquor License

Selling alcohol brings quite a few regulatory requirements and registrations for a business. Generally, every state requires obtaining a liquor license and typically the city and or county will also require licensing depending on where the business is located, amounts of alcohol served, and more.

In addition to any vacation rental-specific licensing, there will also likely be general licensing requirements for starting a business as well.  Here are a few of the common licenses and permits that a bed and breakfast may need:

General Business License or Permit

Depending on where the business is located, a general business license or permit may be required. A few states require a business license; however, they are more commonly found at the city level.

Learn more: Business license requirements by state

Business Name Registration

While not necessarily a business license, it’s worth noting that in order to use a name for a business, many states require the registration of that name. Making matters more complicated, the process of name registration is different by state and the type of business entity.

For instance, sole proprietorships and partnerships generally need to register a business name (also referred to as a Doing Business As, DBA, fictitious name, or assumed name).

Learn: How to register a DBA

Corporations and LLCs register are a little easier in that their name is registered when forming the entity.

Related: What is the difference between a sole proprietorship, partnership, Corporation, or LLC?

Federal Employer Identification Number

The Federal Employer Identification Number (also referred to as a FEIN, Employer Identification Number, EIN, or Federal Tax ID Number) is a unique nine-digit number that identifies a business with the Internal Revenue Service (IRS).

Any business with employees or those that form as a partnership, Corporation, and in many cases an LLC, the business will need to get an EIN.

Sole proprietors and single-owner LLCs without employees can instead use the owner’s social security number.

Learn: How to get an EIN 

Sales Tax Permit or Business Tax Number

A sales tax is collected from overnight stays (sometimes referred to as a tourism tax or lodging tax) and remitted to the state’s Department of Revenue (or similarly named taxation agency). In order to legally operate and collect this tax, a state sales tax permit (business tax number or tax ID number) may be needed.  This permit creates an account number with the state’s Department of Revenue or a similarly named state taxing agency.

Learn: How to get a sales tax permit

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