Florida LLC for Tourism and Hospitality

Florida's tourism industry generates over $100 billion annually, making it one of the state's dominant economic sectors. Whether you operate vacation rentals, a tour company, a restaurant, a charter boat service, or an entertainment venue, an LLC provides essential liability protection in a high-exposure industry. Tourism businesses face unique Florida-specific tax obligations — particularly the tourist development tax and transient rental sales tax — that do not apply to other industries.

If you are ready to form, see our formation guide. For all industry guides, see our industries overview.

Tourism-Specific Taxes in Florida

Transient Rental Tax (Vacation Rentals, Hotels, Airbnb)

If your LLC provides lodging for periods of 6 months or less, you must collect:

State sales tax: 6%
County discretionary surtax: 0.5%-2.5% (varies by county)
County tourist development tax (TDT): 2%-6% (varies significantly by county)

Combined rates by popular tourism county:

County	State Tax	Surtax	TDT	Total on Lodging
Orange (Orlando/Disney)	6%	0.5%	6%	12.5%
Osceola (Kissimmee)	6%	0.5%	6%	12.5%
Broward (Fort Lauderdale)	6%	1%	6%	13%
Miami-Dade	6%	1%	6%	13%
Monroe (Keys)	6%	0.5%	5%	11.5%
Pinellas (St. Pete/Clearwater)	6%	1%	6%	13%
Hillsborough (Tampa)	6%	1.5%	6%	13.5%

These are among the highest lodging tax rates in the country. A vacation rental grossing $50,000/year in Orange County owes approximately $6,250 in combined taxes — all of which you collect from guests and remit.

Registration requirements:

Register with Florida Department of Revenue (DR-1) for state sales tax
Register with your county's Tourist Development Tax office
Collect both taxes from guests and remit on the required schedule

Airbnb/VRBO note: These platforms collect and remit state sales tax and county TDT on your behalf in Florida. However, you should verify with your specific county — some platforms do not collect all local taxes, leaving you responsible for the difference.

Restaurant and Food Service

Prepared food sales in Florida are taxable at the standard 6% + county surtax. Unlike grocery sales (exempt), food prepared for immediate consumption — restaurants, food trucks, catering, bars — is fully taxable.

Licensing for food service:

Florida Division of Hotels and Restaurants license (DBPR)
County health department food service permit
Annual inspections required
Alcohol: separate licensing through Division of Alcoholic Beverages and Tobacco (beverage licenses are expensive — some quota licenses sell for $50,000-$200,000+ on the secondary market)

Vacation Rental Permits — The Local Minefield

Florida vacation rental regulation varies DRAMATICALLY by municipality:

No statewide uniform rule. Each city and county sets its own short-term rental ordinances. Examples:

Miami Beach: Strict — banned in many residential zones, heavy fines for illegal rentals
Kissimmee/Osceola County: Very permissive — major vacation rental market
City of Orlando: Restricted in residential areas; permitted in designated zones
Fort Lauderdale: Requires registration, limits in residential areas
Key West: Limited permits (cap on total number of vacation rental permits)
Unincorporated county areas: Often more permissive than cities

Before forming an LLC for vacation rentals, check your specific municipality's rules. Many Florida LLC owners have formed entities and purchased property only to discover their municipality prohibits or severely restricts short-term rentals.

Florida preemption law (§509.032) historically limited local governments' ability to ban vacation rentals that existed before a certain date. More recent legislation has given localities more enforcement tools. This area of Florida law is actively evolving.

Formation for Tourism Businesses

Ready to get started?

Get Started

Form LLC through Sunbiz.org — $125
Get EIN
Register for state sales tax (DR-1) — required for nearly all tourism businesses
Register for county tourist development tax (if providing lodging)
Obtain industry-specific licenses:
- Vacation rentals: Local rental permit + Division of Hotels and Restaurants license (for rentals with 4+ units or operating as a "public lodging establishment")
- Restaurants: DBPR Division of Hotels and Restaurants license + county health permit
- Tours/charters: Check USCG licensing for boat charters; local business tax receipt
- Entertainment venues: Fire marshal approval, local entertainment license
Obtain business insurance (critical for tourism — high public interaction = high liability)
File for tangible personal property tax exemption (DR-405) if you have furnished units or restaurant equipment

FAQ

Do I need a special license for a single vacation rental in Florida?

If you rent a single residential dwelling for short-term stays, you may NOT need a Division of Hotels and Restaurants license (those apply primarily to properties with multiple units or those that operate as "public lodging establishments"). However, you DO need: local municipal permit (check your city/county), Department of Revenue sales tax registration, and county tourist development tax registration. Requirements vary by locality — check before listing.

Is vacation rental income taxed in Florida?

There is no state income tax on the income itself (pass-through). However, you must collect and remit sales tax (6% + surtax) plus tourist development tax (2-6%) from guests. These are taxes collected from guests, not taxes on your income — but you are responsible for collection and remittance. Failure to collect creates personal liability for the uncollected tax.

Can I use one LLC for multiple vacation rental properties?

Yes, but you sacrifice per-property liability isolation. A guest injury at one property could expose the equity in all properties held by that LLC. For high-value properties, separate LLCs per property provide better protection. See our real estate LLC guide.

What insurance do tourism businesses need in Florida?

Minimum: general liability insurance ($1M+ for businesses with public interaction). Vacation rentals: property insurance + liability rider or specialized short-term rental policy. Restaurants: liquor liability (if serving alcohol), workers' comp (if employees), property insurance. Tour operators: marine liability (boat charters), adventure activity insurance, workers' comp. Florida's hurricane exposure also means adequate property coverage is essential.