How to Start a Short-Term Rental Business in South Carolina: Taxes, Permits and Local Rules

Starting a short-term rental in South Carolina means stacking several registrations, not following one state rulebook. The state has no statewide short-term rental law, so the rules you live with come from your city or county. Most stays also carry a state sales tax, and many localities add their own accommodations taxes and fees. This guide walks through the steps in the order you should handle them, whether you are launching your first Airbnb or converting a second home.

This article is informational only. It is not legal, tax or financial advice. Local ordinances change often and can differ from one neighborhood to the next. Talk with a qualified attorney and a CPA before you buy a property or pick a business structure.

The short answer: South Carolina has no state STR law

If you searched for south carolina short term rental laws or sc short term rental laws, you will find plenty of news about bills in the statehouse. Two of them, H.3861, which would have preempted local short-term rental rules, and S.442, have stalled. As of this writing, the rules that matter are set at the local level. That means your city or county decides whether you can operate, how you get a permit and what the limits are.

Your state obligations are simpler. You will deal with the South Carolina Department of Revenue (SCDOR) for sales tax, the Secretary of State if you form an LLC or corporation, and your local government for a business license and any short-term rental permit. The sections below cover each one.

What you need before you start

Gather these items before you file anything. Missing one usually means a stalled application.

• Your legal name, Social Security number or an Employer Identification Number (EIN) from the IRS, and a South Carolina mailing address
• Proof of ownership, such as a deed, or a written lease that expressly allows short-term subletting
• The property address, the number of bedrooms and total rooms, and whether the property has a pool
• A separate bank account for the rental so guest payments and tax collections stay apart from personal money
• Access to the SCDOR portal (MyDORWAY), the Secretary of State's Business Entities Online, and your city or county website
• A short-term rental insurance quote from a carrier licensed in South Carolina
• A budget that covers the $110 Secretary of State filing fee if you form an LLC, the $50 SCDOR Retail License fee per location, and local license costs, which you should confirm with your locality

Step 1: Confirm you have the right to rent the property

Before you spend money on filings, confirm that the property can legally be rented short term. If you own the home outright, check your deed and any recorded covenants or HOA rules. Many subdivisions ban short-term rentals even when the city allows them. If you rent the home, read your lease. Most residential leases prohibit subletting, and a landlord can end your tenancy over an Airbnb listing.

Ask the city or county planning office whether the address is zoned for short-term rentals. Some coastal communities have restrictions that apply to specific zones, so the answer for one street may differ from the answer for the next.

Step 2: Choose your business structure

You can operate a rental as a sole proprietor, but many owners form an LLC to separate personal assets from rental liabilities. This is a general point, not legal advice, and the right answer depends on your situation and your lender.

If you form an LLC, you file Articles of Organization for a Domestic Limited Liability Company (S.C. Code Section 33-44-203) with the Secretary of State. The filing fee is $110. You can file online through Business Entities Online at businessfilings.sc.gov, and the Secretary of State states that online filings 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.

A few details to get right:

• Name: Your LLC name must include the words limited liability company or limited company, or an abbreviation such as LLC or L.L.C. Search the business records first at the Secretary of State's entity search. If you want to hold a name while you finish paperwork, the state offers a 120-day name reservation for a $25 fee, and the reservation cannot be renewed.
• Registered agent: South Carolina law (S.C. Code Section 33-44-108) requires every LLC to maintain an agent with a South Carolina street address for legal papers. The agent must be a South Carolina resident, a domestic corporation, another LLC, or a qualified foreign entity. Your formation document must list this agent.
• Annual report: A standard LLC is not required to file a state annual report or pay a state franchise tax. An LLC that elects corporate tax treatment is a different case, and you should confirm those obligations with a CPA.

South Carolina does not offer a state DBA. If you want to operate under a trade name such as Coastal Cottage Stays, there is no separate DBA filing; you list it on your local business license as a trade name on your EIN application and your SCDOR Business Tax Application.

Step 3: Get an EIN and register with the SCDOR

Apply for a federal EIN from the IRS, even if you operate as a sole proprietor. You will need it for the bank account, the state tax registration and your local license application.

Next, register through the SCDOR Business Tax Application on MyDORWAY. Sellers of tangible goods must hold a Retail License. Short-term rental hosts who charge guests for lodging generally need one for each location, which is a one-time, nonrefundable $50 fee per location. There are exceptions: if you rent no more than one week per quarter, you do not need a Retail License but still file and pay annually by April 15, and if you book only through an online travel company or a property manager, you do not need one. Confirm which schedule applies to you with the SCDOR at dor.sc.gov before your first guest checks in.

Step 4: Understand the state sales tax on stays

South Carolina charges a 6% state sales tax on most goods and services. For short-term lodging, the rate is 7% on stays under 90 days under S.C. Code Section 12-36-920. That 7% includes the 2% state accommodations tax, so you do not add it on top. Collect the tax from guests, report it to the SCDOR and keep the records.

On top of the state tax, many localities levy a local accommodations tax of up to 3%, plus local hospitality fees. These rates are set locally, so you cannot use one number for the entire state. Ask your city or county which taxes apply to your address and whether the booking platform collects them on your behalf, because that answer changes what you must file yourself.

Step 5: Check the exemptions before you assume you owe the tax

Two exemptions come up often, and both need careful reading:

• Owner's home with fewer than 6 rooms: Under S.C. Code Section 12-36-920, a facility of fewer than six sleeping rooms on the same premises that is the owner's place of abode is not subject to the state accommodations sales tax. Confirm how the SCDOR applies this to your property, especially if you rent only part of the home.
• Rentals of 14 days or less per year: The 14-day rule comes from federal law, IRC Section 280A(g). Under S.C. Code Section 12-36-920, rental income wholly excluded from your gross income under that federal rule is also exempt from the state sales tax on accommodations.

Owners who rent for only a few weeks a year sometimes assume the tax is optional. Ask the SCDOR and a CPA to confirm your exact situation in writing before you rely on an exemption.

Step 6: Apply for your local business license

South Carolina has no general statewide business license. Registration with the Secretary of State is not a business license. Instead, most cities levy a business license tax, and nine counties do as well: Beaufort, Charleston, Dorchester, Horry, Jasper, Marion, Orangeburg, Richland and Sumter.

Local licenses run on a May 1 to April 30 license year, and renewals are due April 30. Renewals for many localities are handled through localblrenewal.com, which the South Carolina Revenue and Fiscal Affairs Office lists as the renewal portal. Calendar the April 30 deadline the day you get your license, because a missed renewal can interrupt your rental and create penalties.

Your local license is usually the document that gives you legal permission to operate in that city or county. Do not assume a state filing covers it.

Step 7: Check the local short-term rental rules

This is the step most new hosts skip, and it is where listings get shut down. Local short-term rental rules are changing quickly, so verify the current text with the local planning office before you buy or launch. The table below summarizes some notable local rules.

Locality	What to know
City of Charleston	Requires owner-occupancy for short-term rentals, so an investor-owned home without the owner living there will generally not qualify.
Hilton Head Island	Requires a short-term rental permit that is tied to the number of bedrooms in the home.
Folly Beach	Has a moratorium on short-term rental permits. Confirm whether the city is accepting new applications before you buy there.
Isle of Palms	Requires a rental license for short-term rental operation.
Charleston County	Applies a 72-day limit on short-term rentals in the areas it governs. Confirm which parcels fall under county rules versus city rules.
Greenville County	Is drafting short-term rental rules. Check the current status with the county before you commit.

Many other cities and counties have their own rules, including occupancy caps, parking requirements, noise rules and posting requirements. If your address is not on this list, do not assume it is unregulated. Ask the city or county directly and get the answer in writing.

Step 8: Check the pool, food and contractor requirements

Some amenities trigger their own requirements:

• Pools: If you rent a property with a pool, you may need a permit from the South Carolina Department of Environmental Services (DES). Confirm the requirement and the fee with DES before you advertise the pool.
• Food: If you prepare or sell food for guests, such as a breakfast service, retail food permits come from the South Carolina Department of Agriculture, not DHEC. Ask the Department of Agriculture whether your plan needs one.
• Renovation work: South Carolina requires a commercial contractor license for jobs above $10,000, and a residential specialty registration applies to jobs above $500. If you hire contractors to renovate or furnish the property, confirm with the state licensing agency that each contractor is properly licensed or registered, and check the thresholds that apply to your project.

Step 9: Set up insurance and guest operations

Standard homeowners policies often exclude paid short-term rental activity or limit coverage for it. Ask your insurer in writing whether your policy covers paid guests, and compare a dedicated short-term rental policy with a rider. Your liability coverage should also match the property, including any pool, hot tub or dock.

Operational setup is simpler, but still important:

• Create a written house rules document that matches your local permit conditions, such as occupancy and noise limits.
• Set up a separate bank account and a bookkeeping system that records every booking, the tax collected and the date you owe each filing.
• Keep copies of licenses, permits, tax filings and insurance certificates in one folder. Local inspectors and platform reviewers ask for them.
• Use a smoke and carbon monoxide detector plan that meets local code, and ask your local building department which inspections apply.

Step 10: Launch and set your compliance calendar

Once your registrations, permits and insurance are in place, you can list the property. Before the first booking, enter every deadline into your calendar. At a minimum, include the April 30 local license renewal, the April 15 annual SCDOR filing if it applies to you, and a quarterly reminder to review collected tax and permit conditions.

Check your listing against your permit before you publish it. If your permit caps occupancy at six guests, the listing should not say eight.

Expected results

Results depend heavily on the property, the location, the season and how well you manage guests and compliance. Many owners who prepare thoroughly report steadier bookings than owners who skip the paperwork, because a compliant listing is less likely to be pulled or fined. No filing or license guarantees occupancy or income. Build your budget on conservative occupancy estimates, and treat tax and permit costs as fixed expenses rather than surprises.

Common mistakes to avoid

• Assuming there is a statewide permit. There is not one. Your city or county decides, so check the local rules first.
• Buying in a restricted area. Confirm zoning, owner-occupancy rules, moratoriums and day limits before you make an offer.
• Forgetting the local license renewal. Local licenses run May 1 to April 30, and renewals are due April 30.
• Treating the state filing as the whole process. An LLC registration does not replace a local business license, a short-term rental permit or a Retail License.
• Collecting the wrong tax. The 7% state rate includes the 2% state accommodations tax. Local accommodations taxes of up to 3% and hospitality fees may be on top, so confirm the full stack for your address.
• Relying on an exemption without confirmation. Ask the SCDOR and a CPA in writing before you assume the 6-room or 14-day rules apply to you.
• Ignoring HOA and lease terms. A permit from the city does not override a deed restriction or a lease clause.

Tips for a smoother start

• Call the local planning office before you sign a purchase contract. Ask for the current short-term rental ordinance and the permit application in writing.
• Book a consultation with the South Carolina Small Business Development Centers (SC SBDC) at scsbdc.com if you want help with the business plan, budget or formation steps.
• Ask the SCDOR whether your booking platform collects and remits tax for you. If it does, confirm what you still have to report yourself.
• Keep a short memo of each conversation with a city, county or state office, including the name of the person you spoke with and the date. Rules are interpreted at the local level, and a written record helps if the answer changes.

Frequently asked questions

Is there a South Carolina Airbnb tax?

Yes. The state sales tax on stays under 90 days is 7%, which includes the 2% state accommodations tax. Many localities also levy a local accommodations tax of up to 3% and local hospitality fees. Confirm the exact combination for your address with the SCDOR and your city or county.

Do I need an LLC to start an Airbnb in South Carolina?

No, but many owners form one for liability separation. An LLC costs a $110 filing fee and requires a registered agent with a South Carolina address. A standard LLC does not file a state annual report.

How do I start an Airbnb in South Carolina if I live out of state?

The same steps apply. You still need the local license, the SCDOR registration for the property and any local permit. An owner-occupancy rule, such as the one in Charleston, may not allow an out-of-state investor to operate there, so check the local ordinance before you buy.

Next steps

Start with the local rules, because they decide whether your property can operate at all. Then register with the SCDOR, obtain your local license and confirm your insurance. Keep your renewal dates on a calendar and review the rules each year, since South Carolina localities are actively changing their policies.

Reminder: this guide is informational content, not legal, tax or financial advice. Confirm every fee, deadline and requirement with the agency or local office named above before you act, and consult a qualified attorney or CPA for your situation.