Conway Business License: Home-Based Business Agreement and Taxes

If you plan to run a business from your home in Conway, South Carolina, the city business license is the step first-time owners most often underestimate. South Carolina has no statewide general business license, so the license you need comes from local government. In Conway, that means the City of Conway Business License Office, which issues the license, administers the Home-Based Business Agreement, and sets the renewal cycle. This guide covers what to gather, how to apply, what the 2026-27 license year costs, and the state tax items home-based owners often miss.

This article is informational content, not legal or tax advice. Rules and rates change, so confirm every figure with the agency named below before you pay or sign anything. If your business structure, sales, or property situation is complicated, talk with a qualified attorney or CPA.

Materials You Need Before You Apply

Gather these items first so the application goes through in one pass:

• Business name and structure. If you formed an LLC, have your filing confirmation from the South Carolina Secretary of State's Business Entities Online portal at businessfilings.sc.gov. The LLC filing fee is $110. The name must include words such as "limited liability company" or "LLC."
• Federal EIN. You will need it for the state tax registration and the local application.
• Home address and property permission. If you rent, get written permission from your landlord to run a business from the unit.
• Written description of your activity. Note whether you sell products, whether customers will come to the home, and whether you plan any signage. These answers decide whether the Home-Based Business Agreement fits.
• Estimated annual gross receipts. Ask the office which measure it uses for your license class, since the tax is calculated from it.
• Payment method. Confirm which payment methods the office accepts before you go in or submit online.

Step-by-Step: Getting Your Conway Business License

Step 1: Confirm the Home-Based Business Agreement Fits Your Plan

Start here, because the agreement sets the boundaries for everything else. A home-based business in Conway operates under these limits:

• No retail sales from the property
• No signage
• No customer visits to the home
• The business use is capped at 10% of the home or one room

If your plan includes walk-in customers, a showroom, pickups at the house, or any sign on the property, the agreement will not work and you will need a commercial location. Ask the Business License Office for the current agreement and read it before you sign, because those terms are what you will be held to.

Step 2: Form Your Entity and Appoint a Registered Agent, If Needed

Sole proprietors and general partnerships do not file organizing documents with the Secretary of State. If you form an LLC, you must designate and maintain a registered agent in South Carolina with a street address for legal papers. The agent must be an individual who is a South Carolina resident, or an authorized business entity. You can reserve a name for 120 days, nonrenewable, for $25. Standard LLCs do not file an annual report. If you elect to be taxed as a corporation, the rules in the tax section below apply.

Step 3: Get Your EIN and State Tax Registration

Apply for your federal EIN from the IRS, then register through the South Carolina Department of Revenue's Business Tax Application on MyDORWAY at dor.sc.gov. Register any trade name on both the EIN application and the SCDOR application. South Carolina does not register DBAs at the state level, so list a trade name on your city license application.

Step 4: Confirm Your License Class and Estimated Cost

For the 2026-27 license year, a Class 1 license costs $32 on the first $2,000 of the measure, plus $1.14 for each additional $1,000. Non-residents pay double. Confirm with the office that Class 1 is the right class, since other classes apply to other activities.

As a worked example, if the office measures your business at $50,000, the formula gives $32 plus ($1.14 times 48), or $86.72. A non-resident would see $173.44. Treat this as a formula, not a quote, and confirm the final figure with the office.

Step 5: Apply Through the Business License Office

Submit your application at the Business License Office, located at 196 Laurel St in the Planning and Development and Construction Services Building. The office also uses BS&A Online for its records. Ask whether a business starting mid-year is prorated, because the license year runs May 1 to April 30 and that answer changes what you pay on day one.

Step 6: Calendar the April 30 Renewal

The license is due April 30. A late penalty of 5% per month applies starting May 1. Renewals are handled at localblrenewal.com. Put the date on your calendar with a reminder two weeks ahead, because a missed renewal costs more than the license itself.

Taxes Beyond the Local License

The city license is only one piece. Check each of these with the agency named.

Hospitality and Accommodations Taxes

If you serve food or drink, or charge admissions, the city levies a 1% hospitality tax, which also applies to admissions. If you rent lodging, the 0.5% accommodations tax may apply. Ask the Business License Office which of these covers your sales, since a home-based setup rarely fits these categories and the answer determines your filing obligations.

Sales Tax and the Retail License

South Carolina's state sales tax rate is 6%. If you sell tangible goods, you need a Retail License from the SCDOR. It is a one-time, nonrefundable $50 fee per location. Here is the conflict to note: the Home-Based Business Agreement bars retail sales from the home. If your product business sells from the house, either move the sales off-site or confirm with the Business License Office how the agreement treats your situation before you register.

Income Tax Treatment

Most single-owner LLCs and sole proprietors pass their profit to the owner's personal return. South Carolina's personal income tax is graduated. For tax year 2026, the SCDOR lists 1.99% on income under $30,000 and 5.21% on income of $30,000 and above, less a $966 adjustment. Brackets are adjusted annually, so confirm the current year with the SCDOR.

If Your LLC Elects Corporate Tax Treatment

An LLC taxed as a corporation files Form CL-1 with a one-time $25 initial License Fee within 60 days of commencing business. It then files the annual report with its SC1120 or SC1120S and pays an annual License Fee of 0.1% of capital and paid-in surplus plus $15, with a $25 minimum. This is a tax election with real consequences, so review it with a CPA before you make it.

Trade and Food Businesses

Contractors have separate thresholds. A commercial contractor license is required above $10,000, and residential specialty registration is required above $500. Confirm the current requirements with the state agency that licenses contractors before you bid. If you make food at home for sale, the local license is not the last stop. Retail food permits come from the South Carolina Department of Agriculture, not DHEC.

Common Mistakes to Avoid

• Signing the agreement without reading it. A single customer visit or sign can put you out of compliance.
• Treating the Secretary of State filing as the business license. State registration is not a local business license. Apply separately with the city.
• Missing the county question. Horry County levies its own business license tax, but only in unincorporated areas, so confirm your address is inside Conway city limits; if it is outside, the county license applies instead.
• Assuming the rate is the final bill. The office sets the measure and the amount. Confirm both before paying.
• Forgetting the April 30 deadline. Penalties of 5% per month start May 1.
• Skipping the registered agent. An LLC without a South Carolina agent is out of compliance from day one.

Quick Reference

Item	Amount or Date	Where to Confirm
Conway Class 1 license, 2026-27	$32 plus $1.14 per $1,000 above the first $2,000; double for non-residents	Business License Office, 196 Laurel St
License due date and late penalty	Due April 30; 5% per month from May 1	Business License Office
Hospitality and accommodations taxes	1% hospitality (also on admissions); 0.5% accommodations	Business License Office
LLC filing fee	$110	SC Secretary of State
Name reservation	$25 for 120 days, nonrenewable	SC Secretary of State
Retail License	$50 one-time per location	SC Department of Revenue

What Results to Expect

Applicants who gather their documents before visiting the office typically find the process moves faster, though processing time depends on the office's workload and the completeness of the file. Once issued, the license generally covers the May 1 to April 30 license year, and you can expect to renew it each spring. Results also depend on how closely your activity matches the agreement. A home business that stays within the limits and keeps its records in order is generally easier to renew than one that has grown beyond the agreement without anyone updating it.

When to Talk to a Professional

Consult a qualified attorney before choosing an entity, signing a lease with a home-business clause, or planning a product business that sells from home. Ask a CPA about the corporate tax election, pass-through treatment, and any hospitality or sales tax filing. These are the decisions where a short professional review usually costs less than fixing a mistake later.

Disclaimer: This article is informational content only and is not legal, tax, or financial advice. Fees, thresholds, and deadlines are summarized from the agencies named above and may change. Confirm current requirements directly with the City of Conway Business License Office, the South Carolina Secretary of State, and the South Carolina Department of Revenue before you act.