How to Open a Restaurant in South Carolina: SCDA Permit, Hospitality Tax and Liquor

If you are working out how to open a restaurant in SC, the state side is more manageable than most first-time owners expect. South Carolina has no general statewide business license. Your core checklist is a formation filing with the Secretary of State, a Retail License from the Department of Revenue, a local business license from your city or county, and a retail food establishment permit from the South Carolina Department of Agriculture (SCDA). If you plan to serve alcohol or add a hospitality tax to your checks, you will need a few more approvals on top of that.

Food safety moved from DHEC to SCDA on July 1, 2024. Many older guides still point to DHEC for restaurant permits, so check the date on any source you rely on.

This article is informational content, not legal or tax advice. Fees, thresholds and deadlines change, so confirm every figure with the agency named before you file. Talk with a South Carolina business attorney and a CPA before you sign a lease, choose an entity or take on financing.

What You Need Before You Start

Gather these items first. Nearly every filing below asks for some of them, and having them ready keeps you from restarting an application halfway through.

• A proposed business name, checked against the Secretary of State business search
• A South Carolina registered agent with a street address for service of process
• A federal Employer Identification Number (EIN) from the IRS
• Owner names, addresses and ownership percentages
• A signed lease or purchase agreement and the exact property address
• A floor plan showing seating, kitchen, dish area, handwashing sinks, restrooms and storage
• Equipment spec sheets for every cooking, refrigeration and dishwashing unit you plan to install
• A draft menu listing the food and beverages you will sell
• A projected food sales figure for your first year, which sets your initial SCDA inspection fee
• An ANSI-accredited Certified Food Protection Manager (CFPM) certificate for at least one employee
• The license number of your build-out contractor

Step-by-Step: Opening a Restaurant in South Carolina

Step 1: Choose your entity and file with the Secretary of State

Most restaurant owners form a limited liability company (LLC). You file Articles of Organization for a domestic LLC under S.C. Code Section 33-44-203 with the Secretary of State. The filing fee is $110. The fastest route is filing online through Business Entities Online, where documents are returned within 24 to 48 business hours. The Secretary of State does not publish a separate expedite fee, so there is no paid rush option to compare against.

Your name must include the words limited liability company or limited company, or an abbreviation such as LLC, L.L.C., LC or L.C. It must also be distinguishable from other registered entity names on the Secretary of State records. If you need to hold a name while you finish your lease and financing, you can reserve it for 120 days for a $25 fee. The reservation is nonrenewable, so file the LLC before it expires.

Every LLC must keep a registered agent in South Carolina. The agent can be a South Carolina resident individual, a domestic corporation, another LLC, or an authorized foreign entity, and the agent's name and address must appear on the formation document. If you change agents later, you file a statement of change with the Secretary of State.

A standard LLC does not file an annual report with the Secretary of State, and the Department of Revenue states that an LLC not taxed as a corporation is not required to file an annual report or pay the corporate License Fee. If you elect corporate tax treatment instead, the Articles of Incorporation cost $110, and you must file Form CL-1 with a one-time $25 initial License Fee within 60 days of doing business in the state. Corporations then file the annual report with their SC1120 or SC1120S, and the recurring License Fee is 0.1 percent of capital and paid in surplus plus $15, with a $25 minimum. Sole proprietors and general partnerships do not file organizing documents with the Secretary of State at all.

Step 2: Register a trade name if you will operate under a DBA

South Carolina has no state DBA filing. The Secretary of State does not register DBA or trade names. Instead, list your trade name on your local business license. Then list it as a trade name on your IRS EIN application and on your Business Tax Application with the Department of Revenue. Limited partnerships and foreign corporations may file an assumed or fictitious name with the Secretary of State instead, so ask the Secretary of State if that applies to you. The state's DBA guidance is at scbos.sc.gov.

Step 3: Get your EIN and Retail License from the Department of Revenue

Apply for your EIN directly through the IRS. Then register with the South Carolina Department of Revenue (SCDOR) through the Business Tax Application on MyDORWAY. Restaurants that sell prepared food are generally treated as retail sellers, which means you need a Retail License. The fee is a one-time, nonrefundable $50 per location. South Carolina's state sales tax rate is 6 percent. You can start the application from the SCDOR retail license page. Confirm with SCDOR how your meal sales are taxed and how often you must file returns, because those answers set up your bookkeeping from day one.

Step 4: Confirm zoning and get your local business license

South Carolina has no general statewide business license, but most cities levy a local business license tax. Nine counties do as well: Beaufort, Charleston, Dorchester, Horry, Jasper, Marion, Orangeburg, Richland and Sumter. For every city and county that levies the tax, the license year runs May 1 to April 30, and the license is due April 30. Renewals are handled at localblrenewal.com.

Before you sign a lease, call the city or county planning and zoning office and confirm that a restaurant with your planned seat count and hours is allowed at that address. Ask about parking, signage, outdoor seating and any grease or sewer requirements. Your local license application will be tied to that address, so a zoning problem found after you sign is far more expensive to fix than one found in a phone call.

Step 5: Plan the build-out with licensed contractors

A commercial contractor license is required for projects above $10,000, and a residential specialty registration is required for work above $500. Restaurant build-outs almost always fall under the commercial threshold, so hire a licensed contractor for the kitchen, plumbing, electrical and HVAC work, and confirm the license with the state licensing agency before you sign a contract. Pull local building permits before work starts, and keep the inspection sign-offs in a folder. You will need them at the final walk-through, and a clean paper trail makes any later questions easier to answer.

Step 6: Apply for the SCDA retail food establishment permit

Food safety for restaurants moved from DHEC to the SCDA on July 1, 2024. In South Carolina, the SCDA grade sticker is the permit itself, so the sticker you post at your entrance is your proof of permit. Submit your retail food establishment permit application at least 30 days before your planned opening. The initial filing includes a $100 initial permit fee plus the annual inspection fee based on your anticipated food sales.

After your first year, the annual fee depends on your prior-year gross food sales. The 2025 SCDA schedule starts at $100 and tops out at $450. Confirm the full bracket table on the SCDA website before you file, because the fee you pay depends on the bracket you land in.

Prior-year gross food sales	Annual SCDA fee (2025 schedule)
Up to $250,000	$100
Between $250,000 and $1.75 million	Rises in $50 steps by bracket, confirm each bracket with SCDA
Over $1.75 million	$450

Late penalties of $50 or $100 can apply when the annual fee is paid late. Confirm with SCDA which penalty applies to your situation and when it triggers.

Step 7: Staff at least one Certified Food Protection Manager

SCDA requires at least one Certified Food Protection Manager (CFPM) with an ANSI-accredited certificate on staff. Certify a manager before the preoperational inspection rather than after, since an inspector will look for the certificate. Confirm with SCDA which ANSI-accredited exam programs it accepts, then schedule the exam and keep the certificate on site.

Step 8: Request the preoperational inspection

Request your preoperational inspection at least 14 days before you want it. Schedule the request once your equipment is installed, utilities are on and your sinks, refrigeration and dishwashing systems are working. Walk the space yourself beforehand against the SCDA food code requirements, and fix anything you find. A preoperational inspection that fails on a basic item, such as a missing handwashing sink or an unlabeled chemical, means another visit and another delay.

Step 9: Register for the local hospitality tax if your city has one

Many cities and counties in South Carolina have adopted a local hospitality tax of up to 2 percent on prepared food and beverages under Section 6-1-720 of the South Carolina Code. Not every city has adopted it, so check with your city before you set your menu prices. If your city has one, register with its tax office before your first sale, configure your point-of-sale system to charge it, and follow the city's remittance schedule.

Step 10: Add a liquor by the drink license if you plan to serve alcohol

A liquor by the drink license requires 40 table seats, a separate kitchen and an SCDA Grade A. Those requirements should shape your floor plan from the start, since converting a space after you have signed a lease is costly. Apply through the state alcohol beverage licensing office at the Department of Revenue, and confirm the local approval steps with your city or county. Ask the licensing office how it counts seats, because a seat-count dispute can delay your opening.

Step 11: Run a final walk-through and open

Before you open, confirm that you have the Secretary of State filing confirmation, your EIN letter, the Retail License, your local business license, the CFPM certificate, the SCDA grade sticker posted, hospitality tax registration if it applies, a liquor license if you plan to serve alcohol, and closed building permits. Open only after the permit is in hand and the sticker is posted.

Tips and Common Mistakes to Avoid

• Assuming a statewide business license is required. South Carolina has none. Your local license and SCDA permit are the approvals most restaurants need.
• Filing a state DBA. There is no state DBA. List your trade name on your local business license and on your EIN and Business Tax Application.
• Treating the 30-day SCDA deadline as a target. At least 30 days is the minimum. Build in extra time for corrections and inspection scheduling.
• Requesting the preoperational inspection too early. Ask for it only when equipment and utilities are in place, and give yourself the 14-day lead time.
• Letting the LLC name reservation lapse. The 120-day reservation cannot be renewed.
• Skipping the zoning check. Confirm the use at the address before you sign a lease.
• Miscounting seats for liquor. The 40 table seat requirement is a hard floor. Confirm the counting method with the licensing office and design for a margin.
• Forgetting the hospitality tax in your point-of-sale system. If your city has adopted it, the tax must be set up before your first sale.
• Missing the April 30 local license renewal. Wherever a city or county levies the tax, the license is due April 30 each year, so put it on your calendar.
• Hiring an unlicensed contractor. Verify the license for any build-out work above the commercial threshold before you sign.

Costs at a Glance

Item	Agency	Cost
LLC Articles of Organization	Secretary of State	$110
Name reservation (120 days, nonrenewable)	Secretary of State	$25
Corporation Articles of Incorporation plus Form CL-1	Secretary of State	$110, plus $25 initial License Fee
Retail License (per location, one-time)	SCDOR	$50, nonrefundable
SCDA initial permit fee	SCDA	$100, plus annual inspection fee based on anticipated sales
SCDA annual fee	SCDA	$100 to $450, by prior-year gross food sales
Local business license	City or county	Varies, confirm locally
Local hospitality tax	City or county	Up to 2 percent of prepared food and beverages, where adopted
Liquor by the drink license	State alcohol licensing office	Confirm with the licensing office

What to Expect

Owners who file the entity early and lock in their inspection dates in advance often avoid the scramble of a last-minute opening. The points that clear a restaurant to open are the SCDA permit, a passing preoperational inspection and a posted grade sticker, so plan the schedule backward from those milestones. These outcomes depend on your contractor, your local government and inspector availability, so treat any timeline here as a planning estimate rather than a guarantee. This guide makes no promise about sales, staffing or profitability, which depend on your concept, location and management.

Sources and Official Resources

• South Carolina Secretary of State, Business Entities: sos.sc.gov/online-filings/business-entities
• Business Entities Online filing portal: businessfilings.sc.gov
• Secretary of State business entity search: businessfilings.sc.gov entity search
• South Carolina Department of Revenue: dor.sc.gov
• SCDOR Retail License application: dor.sc.gov retail license page
• DBA guidance: scbos.sc.gov
• Local business license renewals (participating cities and counties): localblrenewal.com
• South Carolina Small Business Development Centers: scsbdc.com

The SCDA retail food establishment permit application, fee schedule and CFPM requirements are published on the South Carolina Department of Agriculture website. Look up the current forms there before you file, since the agency sets the fee bracket and inspection rules.

This article is informational content, not legal or tax advice. For a lease, entity choice, tax treatment or a liquor license application, consult a qualified South Carolina attorney and a CPA.