@Suzy-And-Cameron0 Hi guys! Small world, isn't it? Yes, you need a business license and will have to pay 10% of your gross earnings (before Airbnb takes their 3% cut) to the SLO County Tax Collector..same place where property taxes are paid. You will be mailed a form each month to calculate / pay your TOT taxes.
The phone number to call about a business license is 805.781.5832. Also, the Planning Department will need to approve your having a short term vacation rental. I'm out in the countryside so it was a non-issue for me.
Since you are just starting out and are neighbors, feel free to click on my profile picture where you can send me a private message if you need help with anything. I'm normally glued to my laptop working on other projects so I will see any emails you send to me.
Happy to help you out!
Clare