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Bed and Breakfast

Description Of Business:

A bed and breakfast is defined by law as a private residence that offers sleeping accommodations to lodgers in 14 or fewer rooms for rent in the innkeeper's residence in which the innkeeper resides while renting the rooms to lodgers, and serves breakfast at no extra cost to its lodgers.

Required State License(s):

No state license is required. Bed and Breakfast accommodations are governed/enforced by the local enforcing agency (i.e., county, city, village or township). Michigan Compiled Law (MCL) 125.1504b allows a Bed and Breakfast with not more than 10 sleeping rooms to be constructed as a single family dwelling. If there are more than 10 sleeping rooms is must be constructed as a hotel.

If the bed and breakfast has 8 or fewer rooms (including owner and family rooms), a full breakfast can be served without a food service license as long as it is a packaged deal.  

A bed and breakfast that has 9 or more rooms should be licensed with the County health Department, when serving a full breakfast.

Use tax should be charged on room rentals.
To register for Michigan taxes, a Registration for Michigan Taxes Form 518 is required to be completed. You can register on-line @ Michigan Business One Stop with a Federal Employer Identification Number or by going to
You may apply for an FEIN either by faxing your SS4 (Application for Federal Employer Identification Number) to 859-669-5760 or by calling 800-829-4933 for more information. You may also apply on-line. For more information, visit the IRS on-line at

Further Information:

Good insurance is highly recommended.

Revised: 9/2013