To start an Airbnb business in Florida legally, you need a vacation rental license from the state’s DBPR, sales and tourist development tax registration, and whatever permit your city or county requires. Most hosts also form an LLC to keep guest claims away from their personal assets. The local rules are the part that sinks people, so check them before you buy or lease anything.
Do you need an LLC to start an Airbnb business in Florida?
Not legally, but it’s strongly recommended. If a guest is injured, the claim goes against the business instead of your personal assets. You also get separate business banking, one entity for multiple listings, and tax flexibility, including a possible S corp election.
File Articles of Organization at Sunbiz.org, pay the $125 fee, designate a registered agent and sign an operating agreement. With several properties, you can hold them all in one LLC or put each in its own LLC for maximum liability separation. One LLC is simpler; separate LLCs stop a problem at one house from reaching the others.
What state license does a Florida short-term rental need?
A Vacation Rental Dwelling License from the Florida Department of Business and Professional Regulation (DBPR). You need it if you rent a dwelling more than 3 times per year for periods of less than 30 days, which covers nearly every Airbnb.
Apply at MyFloridaLicense.com, schedule the DBPR inspection, and pay the license fee ($170 for 1-49 units). The license renews annually.
The inspection checks for smoke detectors in each bedroom, a fire extinguisher, working hot water, proper door and window locks, and pool safety if there’s a pool. Condos and apartments in buildings with 100+ units may be regulated differently, so check your specific property.
Will your city or county let you rent it?
This is the step to do first. State law limits what local governments can do, but many still have strict rules, and some areas have effectively shut out short-term rentals in residential zones.
| Location | How strict |
|---|---|
| Miami Beach | Highly restricted, many areas banned |
| Orlando | Registration required, with restrictions |
| Tampa | Permits required, some zones prohibited |
| Key West | Restricted in residential zones |
| Fort Lauderdale | Permits with restrictions |
| Rural areas | Often fewer restrictions |
Expect some mix of a rental permit, zoning verification, neighbor notification, parking and noise rules, occupancy caps and a local business tax receipt. Orange, Osceola and Miami-Dade counties, among others, also require their own vacation rental registration.
Before you buy or lease, read the local ordinance, confirm zoning, check the maximum rental periods, and read the HOA rules and deed restrictions. HOAs can ban short-term rentals outright, and their fines are substantial.
The most expensive mistake in this business is buying a property and then learning you can’t rent it.
Which taxes do Florida Airbnb hosts collect?
Sales tax. Florida charges 6% state sales tax on vacation rentals, plus a county surtax of 0.5%-2.5%. Register with the Florida Department of Revenue at FloridaRevenue.com, collect tax on each rental, and file monthly, quarterly or annually.
Tourist development tax (TDT). Counties add their own lodging tax:
| County | TDT rate |
|---|---|
| Miami-Dade | 6% |
| Orange (Orlando) | 6% |
| Hillsborough (Tampa) | 6% |
| Broward | 6% |
| Monroe (Keys) | 4% |
Does Airbnb collect Florida taxes for you? It collects and remits state sales tax and TDT in many counties, but not all, and Vrbo is similar. Confirm what’s automatic in your county and handle the rest. Between sales tax, TDT and income tax, the total can reach 20%+ of revenue, so price with that in mind.
What insurance do you need?
Don’t rely on Airbnb’s Host Protection Insurance. It excludes certain liabilities, caps property damage, and doesn’t replace a business policy. Standard homeowner’s insurance doesn’t cover short-term rentals either. You want a rental dwelling policy for property damage, liability for guest injuries, and loss-of-income coverage. Short-term rental specialists include Proper Insurance, CBIZ and Safely, and some traditional insurers offer STR endorsements. Budget $1,500-$5,000 a year, depending on the property and coverage.
How should you set up the property?
Go past the inspection minimum: smoke detectors in common areas too, a carbon monoxide detector if you have gas appliances, a first aid kit and posted emergency contacts. A pool adds barrier rules, safety signage, possibly an alarm, and maintenance records. For hurricane season, have shutters or plywood, a guest communication plan, storm coverage and a weather cancellation policy written before you need it.
Where should you list, and should you hire a manager?
| Platform | Fee | Best for |
|---|---|---|
| Airbnb | 3% host fee | Broad market |
| Vrbo | 3% or 5%+ | Family travelers |
| Booking.com | 15% commission | International guests |
| Direct booking | 0% (plus marketing costs) | Repeat guests |
Managing it yourself keeps the margin and the control but eats your time. A property manager takes 20-40% of rental income and handles guest communication, cleaning coordination and having someone local. If you don’t live near the property, a manager is usually the practical choice.
What does it cost?
| Item | Startup | Ongoing (yearly unless noted) |
|---|---|---|
| Florida LLC | $125 | $138.75 annual report |
| DBPR license | $170 | $170 renewal |
| Local permits | $50-$500 | $50-$500 |
| Insurance | $1,500-$5,000 | $1,500-$5,000 |
| Property setup | Varies | – |
| Cleaning | – | $75-$300 per turnover |
| Platform fees | – | 3-15% of revenue |
| Property management | – | 0-40% of revenue |
| Minimum | $2,000-$5,000 | – |
How much can you make?
It varies too much by location, property type and occupancy for a useful average. Study comparable listings in your target area, then subtract the costs above. Your expenses (mortgage interest on the rental portion, property taxes, insurance, cleaning, repairs, platform and management fees, depreciation) are generally deductible, so track them along with nights rented versus personal use.
Start your Airbnb business
Once you’ve confirmed the property can legally be rented, set up the LLC before you take your first booking. IncCraft handles your Florida LLC formation for $0 + the $125 state filing fee.
Form your Florida LLC with IncCraft today.