How to Start an Airbnb in Charleston, SC: STR Permit, Zones and Taxes

Charleston is one of the harder short-term rental markets in South Carolina to enter, and that is mostly because the rules depend on who lives in the home, where the property sits and how the building is classified. If you plan to buy a house and run it as an Airbnb, you need the permit answers before you make an offer, not after. This guide covers the City of Charleston short term rental permit, the zone categories that decide eligibility, the business license, and the taxes you will owe, in the order you should handle them.

Disclaimer: This article is informational only. It is not legal or tax advice. Zoning rules, fees and tax rates change, so confirm every figure with the agency named before you commit money to a property or a listing. For a purchase, a lease or a business structure, speak with a qualified attorney and a CPA.

What You Need Before You Apply

Gather these items first. Missing proof of residence and an unclear parcel record cause more delays than anything else, so collect them before you open an application.

• The property address and parcel (tax map) number, which usually appears on your Charleston County property tax bill.
• Proof that the home is your full-time primary residence, such as a South Carolina driver's license and voter registration at that address, plus the property tax bill showing the 4% legal residence rate.
• A floor plan or sketch showing bedrooms, bathrooms and the off-street parking space.
• Smoke and carbon monoxide alarm locations and any fire safety details the City requests, since fire fees apply.
• Payment for the $345 zoning review fee and the fire fees. Confirm the fire fee amount with the City before you apply.
• If you plan to hold the property in an LLC: Articles of Organization ($110 filing fee), an IRS employer identification number (EIN) and a South Carolina registered agent.
• A South Carolina Department of Revenue business tax account, applied for through the Business Tax Application on MyDORWAY at dor.sc.gov.

Step 1: Confirm the Home Is Your Full-Time Primary Residence

This is the first gate, and it decides everything else. The City of Charleston allows residential short-term rentals only in the owner's full-time primary residence. The City verifies this through the 4% legal residence tax rate on your property tax bill, so the home must already be assessed as your legal residence.

Investment properties are not eligible. The one exception is commercial zoning inside the Cannonborough-Elliotborough STR Overlay, which is a different path. If you are buying a second home or a rental-only property in a residential zone, stop here and plan for a long-term lease or another use.

Check the tax bill before you buy. If the property does not carry the legal residence rate, the City may not treat it as eligible. Ask the zoning office how a recently purchased home is verified, and get the answer in writing.

Step 2: Find Your Zone Category

Charleston sorts short-term rental eligibility by location and building age into three categories:

• Category 1: the Old and Historic District and buildings listed on the National Register of Historic Places.
• Category 2: the rest of the peninsula, for buildings 50 years old or older.
• Category 3: properties off the peninsula.

Find your category before you go further. Use the City's zoning map or call the zoning office with your parcel number. Confirm your category in writing before you pay for the review, because the category shapes the review itself.

If your address is in unincorporated Charleston County rather than inside a city or town, the county's zoning permit applies instead of the City process. In most county residential districts a permitted home rental is limited to 72 rental days a year, so build that into your plans before you sign a lease or close on a property.

Step 3: Check the Unit and Occupancy Rules

Every City permit carries three hard limits:

• One short-term rental unit per property.
• One additional off-street parking space.
• Up to 4 adults per booking.

The one-unit limit matters if the property has more than one dwelling unit. Only one unit can be permitted as a short-term rental, so a duplex or a home with a second unit cannot put both halves on a listing under one permit.

The parking rule is the one that catches owners off guard. The extra space must be off-street and available to guests. A driveway spot that a long-term tenant or a family member already uses may not satisfy the requirement, so confirm the space meets the City's definition before you list.

Step 4: Choose Your Business Structure and Name

South Carolina has no statewide general business license, so your structure choice affects paperwork and liability more than state fees. Your main options are:

• Sole proprietor: no organizing documents with the Secretary of State. Sole proprietors do not file formation papers at all, though the local license and City permit still apply.
• LLC: Articles of Organization for a domestic limited liability company, with a $110 filing fee. File online through Business Entities Online. Online filings are returned within 24 to 48 business hours. Mailed and in-person filings take longer.
• Corporation: Articles of Incorporation with a $110 filing fee, filed together with Form CL-1 and its one-time $25 initial License Fee. Corporations carry ongoing annual reporting, which an LLC does not.

For most single-property hosts, an LLC is a common choice for separating business liabilities from personal assets, but whether it fits your situation is a legal and tax decision. Ask your attorney and CPA before you choose.

If you choose an LLC, the name must include the words limited liability company or limited company, or an abbreviation such as LLC or L.L.C. Every South Carolina LLC must maintain a registered agent with a street address in the state. Standard LLCs do not file an annual report with the Secretary of State. If you want to hold a name before filing, a name reservation costs $25 and lasts 120 days, and it cannot be renewed.

If you want to operate under a brand name such as Harbor Row Stays, there is no state DBA filing. The Secretary of State does not register trade names. Record the trade name with the county or municipality, typically on your local business license, and list it on your IRS EIN application and your SCDOR Business Tax Application.

Step 5: File the City of Charleston Short Term Rental Permit

Submit the permit application with your residence proof, floor plan, parking details and fire information. Pay the $345 zoning review fee plus the applicable fire fees. The City of Charleston short term rental permit is renewed annually, so put the renewal date on your calendar the day you are approved.

Ask the zoning office for the current processing time when you file. That figure can change, so do not plan around a number you read on a forum. Incomplete applications slow everything down, so check each field against your documents before you submit.

Step 6: Get Your Business License

Registering with the Secretary of State is not a business license. In Charleston, business licensing happens locally, and South Carolina cities and counties handle it. For a business inside the City of Charleston, the Class 7 license for the 2026-27 license year is $64 plus $3.90 per $1,000 of the business's income. Confirm with the City's business license office how the base is calculated for your projected revenue, because the total scales with your income.

Charleston County is one of nine South Carolina counties that levy a local business license tax. The county license year runs May 1 to April 30, and the license is due April 30. Renewals are handled at localblrenewal.com. If your property is outside city limits, ask the county whether this license applies to your rental before you assume it does not.

Step 7: Plan for the Taxes

Short-term rentals in Charleston carry several layers of tax. Plan for each of these:

• Accommodations tax: lodging carries 7% in state tax (the 5% sales tax plus the 2% state accommodations tax), plus local accommodations and other local taxes that the city or county collects. Confirm the local layers for your address with the city or county, and your state registration steps with the South Carolina Department of Revenue.
• Booking platform collection: check what each platform collects and remits on your behalf before you assume it covers your obligations. Platforms do not always handle every local tax.
• Personal or business income tax: rental income is taxable income. South Carolina's individual income tax is graduated. For tax year 2026 the SCDOR lists two brackets: 1.99% on income under $30,000 and 5.21% on income of $30,000 and above, less a $966 adjustment. Confirm how your rental income fits into your return with a CPA.

Step 8: Set Up Your Listing and Your Calendar

Once the permit is approved, keep the permit number ready, and ask the City whether it must appear in your listings. State the 4-adult maximum and the off-street parking space in your listing, and keep your permit, license and tax account numbers in one folder.

Set three recurring reminders: the City permit renewal (annually), the Charleston County business license renewal (due April 30 if your property is in the county license area), and your SCDOR filings on the schedule the department assigns to your account.

Key Figures at a Glance

Item	Amount or rule	Where to confirm
Eligibility	Full-time primary residence only, verified by the 4% legal residence rate	City of Charleston zoning office
Units per property	One short-term rental unit	City of Charleston zoning office
Parking	One additional off-street space	City of Charleston zoning office
Occupancy	Up to 4 adults	City of Charleston zoning office
Zoning review	$345 plus fire fees	City of Charleston zoning office and fire department
Class 7 business license	$64 plus $3.90 per $1,000 (2026-27)	City of Charleston business license office
LLC filing	$110 Articles of Organization	Business Entities Online
Accommodations tax	7% state plus local accommodations tax	SCDOR
Unincorporated Charleston County	County zoning permit, rentals limited to 72 days a year in most districts	Charleston County

Tips and Common Mistakes to Avoid

• Buying before checking eligibility. Confirm your residence status, zone category and overlay status before you make an offer. An investment property is not eligible for the residential path.
• Treating the LLC as the permit. An LLC is a business structure. The City permit and the business license are still required.
• Listing before approval. Do not advertise the property until you have the permit number to show guests and platforms.
• Assuming a driveway counts. The extra parking space must meet the City's off-street definition.
• Mixing up city and county. An address inside city limits and one outside them follow different processes. Confirm which one applies before you pay any fee.
• Missing the renewal. The City permit renews every year, and the county license is due each April 30.
• Using a brand name without recording it. South Carolina has no state DBA filing, so record the trade name locally and on your tax registrations.
• Skipping professional advice. A CPA can model the accommodations tax and income tax before you buy, and an attorney can review the LLC and lease terms. The South Carolina Small Business Development Centers at scsbdc.com can also help you think through the business setup.

What Results to Expect

If you work through these steps in order, you may end up with a City-approved short-term rental, a business structure that fits your goals, and a tax setup your CPA can work with. Results depend on your property, your zone category and the City's review, so treat the timeline as an estimate until the zoning office confirms it in writing.

Some owners find out during Step 1 or Step 2 that a property is not eligible. That is a useful outcome, because learning it before you buy costs far less than learning it after closing. If the answers look marginal, a short conversation with the zoning office and a CPA is worth the time before you commit.