North Myrtle Beach Business License and Rental Rules

Opening a shop, restaurant, service business, or short-term rental in North Myrtle Beach means dealing with a city business license, a few state registrations, and several local and state taxes. This guide walks through the steps in the order most owners need them, using the city's 2026-27 license year figures and the state agencies that handle the rest.

Disclaimer: This article is informational content, not legal or tax advice. Rates, fees, and deadlines change. Confirm each figure with the agency named in the step, and talk with a qualified attorney or CPA before you choose an entity structure, set up lodging operations, or file tax returns.

What you need before you start

Gather these items before you open any application. Most forms ask for the same information, and having it ready keeps you from restarting an application halfway through.

• Your legal business name, entity type (sole proprietorship, LLC, corporation, or partnership), and any trade name you plan to use
• A federal Employer Identification Number (EIN)
• The street address of the business or rental property, plus the owner or manager's contact details
• An estimate of your gross receipts for the upcoming license year
• Your Secretary of State filing confirmation, if you formed an LLC or corporation
• A MyDORWAY account with the South Carolina Department of Revenue (SCDOR)
• A short description of what you sell or provide, since the city's fee schedule sorts businesses into classes

Step 1: Get your entity filed with the Secretary of State

South Carolina has no general statewide business license. A Secretary of State filing is not a business license, but it is what creates an LLC or corporation. File through Business Entities Online at businessfilings.sc.gov, and search your entity name first on the business search page. Online filings are typically returned within 24 to 48 business hours.

The fees you need to plan for are these:

• LLC: $110 filing fee for Articles of Organization under S.C. Code Section 33-44-203. A standard LLC that is not taxed as a corporation files no annual report.
• Corporation: $110 filing fee for Articles of Incorporation, filed together with a Form CL-1 Initial Annual Report and a $25 initial License Fee due within 60 days of doing business in South Carolina. Corporations also file an annual report with the SC1120 or SC1120S.

Sole proprietors and general partnerships do not file organizing documents with the Secretary of State. If you operate under a name other than your own, note that South Carolina has no state DBA filing. There is no county or city DBA filing either. Show the trade name on your local business license, and list it on your EIN application and your SCDOR Business Tax Application. The state's guidance on this is at scbos.sc.gov.

Step 2: Confirm whether the city or the county issues your license

Most South Carolina cities levy a local business license tax. Only nine counties do: Beaufort, Charleston, Dorchester, Horry, Jasper, Marion, Orangeburg, Richland, and Sumter. If your business is inside North Myrtle Beach city limits, the city license applies. If it sits outside city limits but in Horry County, ask Horry County whether it issues the license for that location, since the answer depends on the address.

Local business licenses run on a May 1 to April 30 license year and are due April 30. Renewals are handled at localblrenewal.com.

Step 3: Calculate your city business license fee

The city's 2026-27 schedule for Class 1 businesses charges $50 on the first $2,000 of gross receipts, then $1.75 for each additional $1,000. The rate declines on receipts above $1 million, so ask the city for the upper tiers if your projected revenue is that high. Confirm your classification with the city, because other classes follow their own schedule.

Here is a worked example. A Class 1 business with $150,000 in estimated gross receipts pays $50 on the first $2,000, then $1.75 per $1,000 on the remaining $148,000, which is $259.00. The total is $309.00 before any other city charges.

Non-resident businesses pay double. Ask the city whether the doubling applies to the whole calculated fee or only part of it, because the difference is large on higher receipts.

Item	Amount	Where it is handled
LLC filing (Articles of Organization)	$110	Secretary of State
Corporation filing (Articles of Incorporation)	$110	Secretary of State
Corporation initial License Fee (Form CL-1)	$25	Secretary of State, due within 60 days of doing business
SCDOR Retail License (per location, one-time, nonrefundable)	$50	SCDOR through MyDORWAY
City business license, Class 1	$50 on the first $2,000, plus $1.75 per $1,000	City of North Myrtle Beach
Late penalty on the city license	5% per month	Applies starting May 1

Step 4: Register for sales tax if you sell goods

If you sell tangible goods, you need a Retail License from SCDOR. It is a one-time, nonrefundable $50 fee per location, and you apply through the Business Tax Application on MyDORWAY. Start at the SCDOR retail license page.

Plan on an 8% sales tax rate on taxable sales in the city. Confirm the current rate with SCDOR before you configure your point-of-sale system, because a wrong rate in the register creates a cleanup job at filing time.

Step 5: Set up a short-term rental correctly

North Myrtle Beach is one of the simpler markets for short-term rentals. Under the city's rules, a rental needs the city business license and the accommodations tax registrations. There is no special zoning or permit process for short-term rentals. That is a different setup from Myrtle Beach, so do not assume the rules carry over from a neighboring town.

Lodging taxes stack on each stay:

• State accommodations tax: 2% on lodging.
• City Hospitality Fee: 1.5% on transient lodging.
• Horry County fee: 1.5%. Confirm with Horry County which lodging stays it covers and whether it applies to your property.

On a $300 room night, the state tax is $6.00. If both local fees apply, the city fee is $4.50 and the county fee is $4.50. Booking platforms may collect some of these taxes for you, but check which ones they handle and whether you still need your own registration.

Also confirm that your property's homeowners association or lease allows rentals. A city license does not override private restrictions.

Step 6: Handle the city Hospitality Fee on food, drink, and admissions

Restaurants, bars, and other sellers of prepared food and beverages owe a 1% city Hospitality Fee on those sales. Venues that charge paid admissions owe 1% on admissions. These fees are typically collected from customers at the point of sale and remitted to the city. Set up your point-of-sale system to add them, and confirm the remittance schedule with the city before you open.

Step 7: Check the state trade and food licenses

Retail food permits come from the South Carolina Department of Agriculture. The state agency that handled retail food permits was split in 2024, so older guides and forms may still point to DHEC. Use the Department of Agriculture's current contact information.

Contractors have their own thresholds. Commercial contractor licenses start above $10,000, and residential specialty registration starts above $500. Confirm the current requirements and the issuing agency with the state contractor licensing board before you bid on a job.

Step 8: Renew on time every April 30

Your local license year runs May 1 to April 30, and renewals are due April 30. The city charges a 5% late penalty each month starting May 1. Put the renewal on your calendar for March, gather your updated gross receipts estimate, and file at localblrenewal.com.

Common mistakes to avoid

• Treating the Secretary of State filing as your business license. It is not one. You still need the local license.
• Using a trade name without recording it locally. South Carolina has no state DBA, so the local record and your EIN and SCDOR entries are what matter.
• Underestimating gross receipts. Understated numbers can create problems at renewal or during a review. Ask the city how estimates are checked.
• Forgetting the non-resident doubling. If your business has no fixed location inside the city, budget for the higher amount.
• Skipping the accommodations tax registration for a rental. The license alone does not cover lodging taxes.
• Following an old DHEC food permit instruction. Retail food permits now come from the Department of Agriculture.
• Missing April 30. The late penalty starts May 1 and grows each month.

What to expect once everything is in place

Most owners find the first year takes the most effort. You are setting up accounts, learning the April 30 cycle, and configuring your point-of-sale system or booking platform. Once the city license, the SCDOR registrations, and any trade licenses are active, the renewal cycle usually becomes routine. Plan on several weeks for the full setup, because the Secretary of State can turn online filings around quickly but the city, SCDOR, and other agencies may take longer to respond or may ask for corrections.

If your business has multiple locations, owns rental property through an entity, or includes contractor work, have a qualified attorney or CPA review the setup before you open.