How to Start a Golf Cart Rental Business in South Carolina: 2025 Golf Cart Law

Golf cart rentals are a practical small business in South Carolina's beach and resort towns, and the startup paperwork is more manageable than many people expect. The part that deserves the most attention is the golf cart law. South Carolina changed its rules in 2025, and the rules for operating carts on public roads now sit in a single section of the code. This guide covers the forming, licensing and registration steps in order, with the South Carolina golf cart laws that matter most for a rental fleet.

Disclaimer: This article is informational content, not legal or tax advice. Golf cart rules come from state law and from individual towns and counties, and they can change. Before you sign a lease, buy a fleet, or sign an insurance policy, talk with a South Carolina attorney and a CPA about your situation.

What the 2025 Golf Cart Law Changed

Act 64 of 2025 took effect on May 22, 2025, and moved South Carolina's golf cart rules into S.C. Code Section 56-2-90. If you find older articles describing a different set of rules, do not rely on them. For a rental operation, the current statute sets these requirements:

• Permit decal and registration: Each cart needs a $5 SCDMV permit decal and registration. Applying requires proof of ownership and proof of insurance. The decal must be replaced every 5 years or when the registered address changes.
• Operator age and license: Operators must be 16 or older and hold a valid license.
• Roads: Carts may be driven on secondary roads where the speed limit is 35 mph or less.
• Daylight and distance: Without a local ordinance, carts may be driven only during daylight and only within 4 miles of the registration address.
• Local control: Towns and counties may allow night driving and set specific routes. They may not require property ownership or a long-term lease as a condition of receiving a decal.
• Passengers: Passengers under 12 must be belted.
• Beach towns: Myrtle Beach, Hilton Head Island, Folly Beach and Isle of Palms set their own golf cart ordinances. Check each town's rules before you rent carts there.

The 4-mile limit matters for a rental business. Because it is measured from the registration address, you need to decide where your fleet is registered and understand how that choice affects where carts can go. Confirm with the SCDMV and your town how the rule applies to a rental fleet, since a registration tied to one storefront may behave differently from an individual owner's registration.

Materials and Information You Need Before You Start

Gather these items before you file anything. Most delays in this process come from missing documents, not from the agencies themselves.

• Your business name, plus one backup name in case your first choice is taken
• A South Carolina registered agent, meaning an in-state street address and an agent who meets the state requirements (covered in Step 3)
• Payment for the filing fee and, optionally, a name reservation fee
• A federal Employer Identification Number (EIN) from the IRS
• Proof of ownership for each cart, such as a bill of sale, and the serial number for each cart
• Proof of insurance covering each cart
• Your local business license application from the city or county where you will operate
• A written rental agreement and operator rules, reviewed by an attorney

Step 1: Choose Your Business Structure

Most rental operators form a limited liability company (LLC). An LLC separates your personal assets from the business's debts and liabilities, which matters when you own a fleet of vehicles that carry passengers. A sole proprietorship avoids state filing, but it leaves you personally exposed. A corporation is also possible, but it adds ongoing tax filings. The South Carolina Secretary of State does not publish a separate expedited fee, and the costs below are the state figures you need to plan around.

Item	Cost	Where it is paid or filed
LLC Articles of Organization (S.C. Code Section 33-44-203)	$110	South Carolina Secretary of State
Corporation Articles of Incorporation, filed with Form CL-1	$110 plus $25 initial License Fee	South Carolina Secretary of State
Name reservation (120 days, nonrenewable)	$25	South Carolina Secretary of State
Golf cart permit decal and registration (per cart)	$5	SCDMV
Retail License (for sellers of tangible goods, per location)	$50, one time and nonrefundable	SCDOR, through the Business Tax Application
Local business license	Set by your city or county, so confirm the amount with them	Local clerk or licensing office

A standard LLC does not file an annual report with the state, and the SCDOR states that an LLC not taxed as a corporation does not pay the corporate License Fee. An LLC that elects corporate tax treatment must file Form CL-1 and then file annual reports with its SC1120 or SC1120S, so the structure you choose affects your yearly paperwork. Ask a CPA which structure fits your expected income and tax plans.

Step 2: Pick a Name and Check Availability

Search the Secretary of State's business database at businessfilings.sc.gov before you commit to a name. Under S.C. Code Section 33-44-105, an LLC name must include the words limited liability company or limited company, or an abbreviation such as LLC, L.L.C., LC or L.C. The name must also be distinguishable from other registered names on the state's records. If a close match exists, the state will not accept your filing unless you obtain written consent or file an Application for Use of an Indistinguishable Name, which carries a $10 fee.

If you need time to finish your paperwork, you can reserve a name for 120 days for $25. The reservation cannot be renewed, so file the formation documents before it expires. The reservation form is available from the Secretary of State's forms page.

A DBA is not a state filing. South Carolina does not register DBAs or trade names with the Secretary of State. If you plan to operate under a name such as Sandbar Cart Rentals while your LLC has a different legal name, list the trade name on your local business license application. You also list the trade name on your IRS EIN application and your SCDOR Business Tax Application.

Step 3: Appoint a Registered Agent and File Online

South Carolina requires every LLC to designate and maintain a registered agent and an office in the state for legal papers. The agent must be a South Carolina resident individual, a domestic corporation, another LLC, or a foreign corporation or company authorized to do business in the state. The agent's name and street address must appear on your formation document. You can serve as your own agent if you meet the residency requirement, or you can use a commercial registered agent service. Compare the annual cost of a service with the cost of having your own in-state address available during business hours.

File through Business Entities Online. The Secretary of State says documents filed online are returned within 24 to 48 business hours. Mailed and in-person filings take longer, and the state does not publish a mail turnaround window. If your registered agent or office changes later, you file a statement of change with the Secretary of State.

More information is available from the South Carolina Secretary of State business entity page.

Step 4: Get Your EIN and Tax Registrations

Apply for an EIN from the IRS, and list your trade name on the application if you will operate under one. Then register your business with the South Carolina Department of Revenue (SCDOR) through the Business Tax Application on MyDORWAY. The SCDOR site is at dor.sc.gov.

South Carolina's state sales tax rate is 6 percent. Sellers of tangible goods must obtain a Retail License, which costs a one-time nonrefundable $50 per location. South Carolina sales tax law treats the rental of tangible personal property, such as golf carts, as a sale, so a cart rental business generally needs the Retail License and collects sales tax on rental charges. Confirm with the SCDOR how your rental receipts and add-on sales such as helmets, bottled water or cart covers are taxed, and which local taxes apply at your address.

Step 5: Get a Local Business License

South Carolina has no general statewide business license. Registration with the Secretary of State does not replace a local license. Most cities levy business license taxes, and only nine counties do so: Beaufort, Charleston, Dorchester, Horry, Jasper, Marion, Orangeburg, Richland and Sumter. Local business license taxes are typically calculated on a May 1 to April 30 license year, and they are due April 30. Renewals are handled at localblrenewal.com, according to the SC Revenue and Fiscal Affairs Office.

If you plan to rent in a beach town, call the town clerk early. Ask whether the town requires a separate golf cart rental permit, a fleet inspection, or a special use approval in addition to the general business license. Those requirements vary by town, and you should not assume that a county or city license covers everything.

Step 6: Register Each Cart With the SCDMV

Each cart you rent out needs a $5 SCDMV permit decal and registration under S.C. Code Section 56-2-90. Gather the following for each cart:

1. Proof of ownership, such as a bill of sale or other documentation showing the business owns the cart
2. Proof of insurance covering that cart
3. The cart's serial number and a description of the vehicle
4. The registration address you intend to use

Track the date each decal was issued. Decals must be replaced every 5 years, and you must also replace them when the registered address changes. Missing the replacement date is an easy mistake to make across a fleet of ten or more carts, so set a calendar reminder for each one. Ask the SCDMV whether a multi-cart fleet is processed differently from an individual registration, and whether any documents a renter or officer may ask for should be kept on each cart.

Step 7: Confirm Town and County Rules for Your Routes

Without a local ordinance, carts may be driven only during daylight. Towns and counties may allow night driving and may set specific routes. Before you advertise evening rides, find out whether your town permits them and whether it designates routes you must use. Those answers should drive your rental hours, your route maps, and your rental agreement language.

Because Myrtle Beach, Hilton Head Island, Folly Beach and Isle of Palms set their own golf cart ordinances, a rental fleet in any of those towns should treat the local ordinance as the controlling rule for daily operations. Get the current ordinance in writing from the town and keep a copy on file with your business records.

Step 8: Buy Insurance Before the First Rental

Proof of insurance is a condition of registering each cart, so insurance comes before your fleet goes on the road. Your personal auto policy may not cover a rental business, so ask an insurance agent about commercial coverage for rented golf carts, including liability coverage for renters and passengers. Describe your fleet, your operating towns, your rental hours and your planned night operations so the policy reflects how you actually operate. Ask whether the policy requires any specific operator age, license or training requirements, and make sure your rental agreement matches the policy terms.

Step 9: Write Your Rental Agreement and Operator Rules

Your rental agreement should state the rules the state and your town set, and it should be specific enough that a renter cannot say they did not know them. At a minimum, cover the following:

• Operators must be 16 or older and hold a valid license, and you should verify both before handing over the keys
• Driving is limited to permitted roads, the speed limits that apply, and any daylight or route restrictions in your town
• Passengers under 12 must be belted
• Renters are responsible for damage, fines and towing under the terms you set
• Your policy on impaired operation, which should be consistent with your insurance terms

Have an attorney review the agreement before you use it. A form from another company may not match South Carolina law or your insurance policy.

Step 10: Set Up Pricing, Operations and Opening Day

Set your rental rates after you know your insurance cost, your local license fees, your cart maintenance schedule and the routes you can legally offer. Build a simple daily checklist for each cart that covers the decal, proof of insurance on the cart, the battery or charge, lights, brakes and tires. Keep records of inspections, repairs and incidents from the first day, because they support your insurance claims and any local compliance questions.

Common Mistakes to Avoid

• Assuming a statewide business license exists. South Carolina does not issue one. Your local license comes from your city or county, and nine counties and most cities levy business license taxes.
• Using a DBA filing that does not exist. There is no state DBA registration. List the trade name on your local business license and your tax and EIN applications.
• Treating the state rules as the whole story. Beach towns set their own golf cart ordinances, and those can limit hours, routes and where you can keep carts.
• Letting the decal expire. Replace decals every 5 years and whenever the registered address changes.
• Renting before insurance is in place. Proof of insurance is required for registration, and a gap in coverage can leave the business personally exposed.
• Skipping the sales tax question. Ask the SCDOR how your receipts are treated rather than guessing.
• Using a generic rental agreement. Your waiver, age rules and damage terms should match South Carolina law, your town's ordinance and your policy.

Tips for a Smoother Launch

• File the LLC first, then the EIN and SCDOR registration, then the local license. Each step depends on the one before it.
• Call the South Carolina Small Business Development Center network at scsbdc.com for free help with planning and checklists.
• Check the SBA South Carolina district page for local resources and counseling options.
• Keep one folder per cart with the bill of sale, insurance card, decal date and inspection log.
• Ask each town for its golf cart ordinance in writing before you publish route maps or advertise evening rides.

Expected Results

A rental operation that completes registration, insurance and local licensing before opening may be in a better position to handle its first season without interruption. Early results often depend on the town, the season, the number of carts and how well the business matches its routes and hours to local rules. Many new operators spend the first few months learning which routes and time slots produce bookings, so plan your cash reserves with that learning period in mind. Nothing in this guide promises a specific revenue or profit level.

Confirm These Details With the Agencies

Agency or office	What to confirm
South Carolina Secretary of State	Name availability, current filing fees, registered agent requirements
SCDOR	Whether rental receipts are subject to sales tax, Retail License requirements for add-on sales, CL-1 timing if you choose a corporation
SCDMV	Fleet registration process, required documents, decal timing, any rules for registration address
Your city or county	Local business license amount and deadlines, any separate golf cart rental permit
Your beach or resort town	Golf cart ordinance, night use rules, approved routes, fleet requirements

If your situation involves multiple towns, a fleet larger than a few carts, employees, or a storefront lease, work with a South Carolina attorney and a CPA before you open. The rules in this guide are a starting point, and your specific structure may need professional review.