City of Columbia Business License: Rates, Hospitality Tax and Tourism Development Fee

If you plan to operate a business inside the City of Columbia, South Carolina, you will need a city business license. Columbia's license is a local tax, not a state filing. South Carolina does not issue a statewide general business license, so a Secretary of State filing such as Articles of Organization for an LLC ($110) does not give you permission to operate in Columbia. This guide covers the 2026-27 license year rates, how to apply, lodging taxes, and where zoning and permits fit into the process.

Searching for a Columbia business license often pulls up Columbia, Missouri. This guide covers only Columbia, South Carolina, so confirm the state before you rely on any figure or file any form.

This article is informational content, not legal or tax advice. Confirm current figures with the City of Columbia, and consult a qualified attorney or CPA if your situation is complex.

What You Need Before You Apply

Gather these items first so your application does not stall:

• Legal business name and entity type. If you formed an LLC or corporation, have your Secretary of State filing details and formation documents ready.
• Federal EIN. Your IRS employer identification number. If you operate under a trade name, list that name on the EIN application as well.
• Business address in Columbia. Know whether the business operates from a storefront, an office or a home.
• Gross receipts estimate. The city uses your expected figure to calculate the Class 1 license. Ask Business Licensing which measure applies to your business type.
• Payment method. Paying by card through the city self-service portal adds a 2.9% card fee.
• State retail paperwork if you sell goods. This is the SCDOR Retail License covered in step 4 below.
• Industry documents. Food, lodging, rental and contractor businesses have additional requirements, covered in the steps below.

2026-27 Columbia License Rates

South Carolina local license years run May 1 to April 30. The current license year is 2026-27, and the license fee is due by April 30. Use this table as your starting point:

Item	2026-27 amount
Class 1 base	$60 on the first $2,000
Class 1 rate per $1,000	$0.90 per $1,000 at the start, stepping down as the base grows
Lowest rate	$0.45 per $1,000 above $5 million
Non-resident businesses	Doubled
Lodging hospitality tax	2%
Tourism Development Fee on lodging	3%
Card payment through the city portal	2.9% card fee

The per-$1,000 rate declines as your base rises, reaching $0.45 above $5 million. The intermediate steps are set by the city schedule, so ask Business Licensing for the full bracket table before you estimate your bill. Ask at the same time whether the non-resident doubling applies to the whole amount or only to the base.

How to Apply for a Columbia Business License

1. Confirm the license applies to you. If your business operates inside city limits, you need the local license. Business Licensing was at 1339 Main St, but the office was scheduled to move to 1401 Main St, 1st floor, in summer 2026. Confirm the current address before you visit, and do not rely on older printed guides.
2. Handle your business name. South Carolina has no state DBA filing, and the Secretary of State does not register DBA or trade names. Record a DBA with the city, typically on your local business license, then list it as a trade name on your IRS EIN application and your SCDOR Business Tax Application. Limited partnerships and foreign corporations are the exception and may file an assumed name with the Secretary of State.
3. Check zoning before you sign a lease. Zoning is separate from the business license, but a location that does not fit your use can derail your plans. Ask Business Licensing whether your address needs a zoning check before the license issues, and keep the answer in writing. Permits for construction, signs or alterations are also separate, so ask which City of Columbia permits apply to your project.
4. Get an SCDOR Retail License if you sell tangible goods. The Retail License is a one-time, nonrefundable $50 fee per location, applied for through the Business Tax Application on MyDORWAY. Start at the SCDOR retail license page. The statewide sales tax rate is 6%.
5. Submit the Columbia application. Apply through the city self-service portal or with Business Licensing. Enter your business details, your gross receipts estimate and your classification, then pay. Save the confirmation.
6. Calculate the license tax. Start with the $60 base for the first $2,000, add the per-$1,000 rate for the remainder using the bracket schedule, then apply the non-resident doubling if it applies to you. Confirm the exact method with the city before you pay.
7. Add lodging taxes if you rent rooms. Lodging carries a 2% hospitality tax and a 3% Tourism Development Fee, or 5% combined. Some third-party guides list 0% for both rates. Those figures are wrong, so do not price your rooms or your guest invoices with them. Ask the city which return you file and how often you remit.
8. Complete the rental property questionnaire if you rent property. Ask when you apply whether the city's rental property questionnaire must be completed with your license, and what it asks for.
9. Check industry permits. Retail food permits come from the South Carolina Department of Agriculture, not DHEC, which was split in 2024. Commercial contractor licenses start above $10,000, and residential specialty registration starts above $500. Confirm both thresholds with the state contractor licensing agency before you bid work.
10. Calendar your renewal. The license year ends April 30. Renewals for local licenses are handled at localblrenewal.com, the statewide renewal site run by the SC Revenue and Fiscal Affairs Office. Confirm with Business Licensing whether your Columbia license renews there or through the city portal, then set a reminder for early April.

Lodging: Hospitality Tax and Tourism Development Fee

If your business rents overnight rooms in Columbia, two charges apply to lodging: a 2% hospitality tax and a 3% Tourism Development Fee. Together they total 5% on lodging. Build both into your rates from the first booking, and keep booking records organized by stay so each return reconciles. Ask the city how the fees apply to short-term rentals and to bundled packages that include lodging.

Expected Results

A complete application and a paid license may make it easier to open on schedule and to renew without gaps in your registration. Results vary with your business type, your location and how complete your paperwork is. The license confirms your local registration, but it does not guarantee approval of zoning, permits or industry licenses. Treat each of those as a separate step with its own confirmation.

Tips and Common Mistakes

Tips

• Save the rate schedule and lodging rates with the date you pulled them, and file them with your records.
• Calendar April 30 as soon as you receive the license.
• Keep your legal name, DBA and retail license details consistent across the EIN, the SCDOR application and the city application.

Common mistakes

• Confusing Columbia, South Carolina with Columbia, Missouri. Check the state before you apply or pay.
• Treating a Secretary of State filing as a business license. A formation filing creates your entity. It does not give you the local license.
• Looking for an LLC annual report. An LLC not taxed as a corporation files no annual report. An LLC that elects corporate tax treatment must file Form CL-1 with a one-time $25 initial License Fee within 60 days of doing business or using capital in South Carolina.
• Using an old address or old rates. Confirm the 1401 Main St move and the 2026-27 schedule before you act on any printed guide.
• Forgetting the non-resident doubling or the 2.9% card fee. Both change the amount you pay.
• Missing the April 30 due date. The license year is not the calendar year.
• Selling goods without a Retail License. Sellers of tangible goods need the SCDOR Retail License in addition to the city license.

Next Steps

Confirm the current office address, the full bracket table and your renewal path with the City of Columbia Business Licensing office. Then talk to a CPA about how your gross receipts and entity type affect your tax position. If your formation, lease or zoning questions are complex, a qualified attorney can review them before you sign anything.