City of Aiken Business License: License Year, Rates and Hospitality Tax

If you plan to open or run a business inside the City of Aiken, you will likely need a city business license. If you sell prepared food or beverages, you may also owe the city's hospitality tax, and lodging owes an accommodations tax. South Carolina does not issue a general statewide business license, and registering with the Secretary of State is not a business license. That makes the local license the step many new owners miss. Most South Carolina cities levy a local business license tax, but only nine counties do, and Aiken County is not one of them. For most Aiken businesses, the city license is the one that counts. North Augusta is a separate city with its own license, so an Aiken license does not cover a business located there.

This guide covers what to gather, how the license year and rate work, what the hospitality tax involves, and where the city's published information conflicts. Items marked as points to confirm are ones where you should ask the city before you pay, because the sources do not settle them.

This article is informational, not legal or tax advice. Talk to a qualified attorney or CPA before making decisions about your entity, licenses or taxes, especially if your situation is complex.

What You Need Before You Apply

Gather these items before you start. A missing item usually stalls an application rather than sinking it, but it still costs you time.

• Your legal business name and structure. Sole proprietorships and general partnerships do not file organizing documents with the Secretary of State. LLCs and corporations do.
• Entity filing confirmation. A South Carolina LLC files Articles of Organization with a $110 filing fee. A corporation files Articles of Incorporation for $110, along with Form CL-1 and its $25 initial License Fee.
• Registered agent details. An LLC must keep a South Carolina agent with a street address for service of process. The agent must be a South Carolina resident individual, a domestic corporation, another LLC, or an authorized foreign entity.
• Federal EIN. Get your Employer Identification Number from the IRS before you apply for the city license and your state tax account. Have the number ready, since both applications ask for it.
• Business address inside city limits. Confirm the address with the city before you apply, because a location outside the city may need a different license.
• Gross receipts figure. Have last year's gross receipts or a reasonable projection for a new business. Ask the city which figure it wants.
• SCDOR Retail License, if you sell tangible goods. This is a one time, nonrefundable $50 fee per location, applied for through the Business Tax Application on MyDORWAY.
• Food permit, if you serve food. Retail food permits come from the South Carolina Department of Agriculture, not DHEC, which was split in 2024.
• Contractor credentials, if you build or renovate. Commercial contractor licenses apply to work above $10,000, and residential specialty registration applies above $500.

Step-by-Step: Getting Your City of Aiken Business License

Step 1: Settle your business name and entity

Choose your name before you file anything. An LLC name must include the words limited liability company or limited company, or an accepted abbreviation such as LLC, L.C. or LC. The name must also be distinguishable from other registered names on Secretary of State records. You can search existing names at the South Carolina Secretary of State business search. A name reservation holds a name for 120 days, cannot be renewed, and costs $25.

If you operate under a name other than your legal name, a DBA, know that South Carolina has no state DBA filing. The Secretary of State does not register DBAs. Record the DBA with the county or municipality, typically on your local business license, and list it as a trade name on your EIN application and your SCDOR Business Tax Application. The South Carolina Business One Stop DBA page explains the process.

Step 2: File your entity online

If you form an LLC or corporation, file through Business Entities Online. Online filings are typically returned within 24 to 48 business hours. The Secretary of State does not publish a separate expedited tier or expedite fee, so online filing is the fastest route it offers. Mailed and in-person filings take longer, and the state does not publish a mail turnaround window.

Step 3: Open your state tax account and Retail License

Register your business through the SCDOR Business Tax Application on MyDORWAY. If you sell tangible goods, apply for the SCDOR Retail License at the same time. The $50 fee is nonrefundable and applies per location, so a second storefront needs its own fee.

Step 4: Confirm the license year before you pay

This is where many online guides go wrong. The license year runs May 1 to April 30, and licenses are due April 30. Some City of Aiken web pages still show a July 1 to June 30 cycle. Act 176 and the state's local business license renewal portal at localblrenewal.com both give the April 30 due date.

Points to confirm with the city: which license year you are applying for (the 2026-27 license year, as the city labels it), whether a business opening in the middle of a license year pays the full fee or a prorated fee, and whether the city's renewals run through the state portal.

Step 5: Calculate the license fee

The Class 1 rate for the 2026-27 license year is $25 on the first $2,000, plus $0.85 per $1,000. The city doubles that rate for non-residents. Ask the city to confirm three things before you calculate your fee:

• Whether the $0.85 applies to every $1,000 of your figure or only the amount above the first $2,000.
• Which class applies to your type of business.
• What the city counts as a non-resident business, since a company can be doubled without realizing it.

Step 6: Apply and pay the City of Aiken

Submit your application to the city's business license office with your entity filing confirmation, your EIN and your gross receipts figure. Ask the city what proof of address it needs and whether it requires any other approval for your location. Pay the fee, keep the receipt, and ask whether the city requires you to display the license at your place of business.

Step 7: Register for the hospitality tax if it applies

If your business sells prepared food or beverages, add hospitality tax registration to your application, and if you rent lodging, ask about the accommodations tax. The rules are covered in the next section.

Aiken Hospitality Tax: Rates and What to Confirm

The City of Aiken's hospitality tax was 1%. Aiken City Council voted on August 10, 2026 to raise it to 2%. The vote and the date the new rate takes effect are separate facts, so you should confirm the effective date with the city before you change your point of sale settings or price menus.

Lodging businesses owe a 3% local accommodations tax. Confirm with the city whether the accommodations tax applies to your rental, how it is collected, and how often you must remit it. If you rent a home for short stays, the city may treat your rental differently from a hotel, so ask before you assume.

For hospitality tax compliance, set up your sales records to separate taxable and nontaxable sales from the start. Ask the city for its filing frequency, due dates and remittance method, and keep copies of every return.

Tips for a Smoother Application

• Call the city before you file. A five-minute call can confirm the license year, rate class and proration rules before you pay anything.
• Put April 30 on your calendar now. Your city license renewal is a separate obligation from any state filing, and the renewal date is the one most owners forget.
• Know what your LLC does not owe. An LLC not taxed as a corporation does not file a South Carolina annual report or pay the corporate License Fee. That does not excuse you from the city license.
• Know the corporate filings if you elect corporate tax treatment. An LLC taxed as a corporation files Form CL-1 with its $25 initial License Fee within 60 days of starting business, then files its annual report with the SC1120 or SC1120S.
• Use local help. The South Carolina Small Business Development Centers can review your setup and point you to the right office.

Common Mistakes to Avoid

• Treating Secretary of State registration as your business license. It is not one. You still need the city license.
• Trusting an old July 1 date. Older city pages and third-party guides may show a cycle that no longer applies. Confirm the April 30 due date.
• Looking for an Aiken County license. Aiken County does not license businesses, so the city is the only local office to deal with for most businesses.
• Assuming an Aiken license covers North Augusta. North Augusta issues its own license.
• Skipping the DBA record. Operating under a trade name without recording it with the county or city can cause problems with banks, customers and the state tax account.
• Using the wrong hospitality tax rate. Charging 1% after the 2% rate takes effect, or 2% before it does, both create reconciliation problems. Confirm the effective date.
• Missing the non-resident rate. If the city considers your business a non-resident, the doubled rate applies. Confirm your status before you calculate the fee.

What Results to Expect

A complete application with an accurate gross receipts figure and a confirmed license year will usually move faster than one the city has to return for missing information. Online entity filings are typically returned within 24 to 48 business hours. The sources reviewed for this guide do not give a City of Aiken processing time, so ask the office how long it takes to issue a license and whether you can operate while the application is pending.

Expect the fee to be modest for a small business at the Class 1 rate, but the non-resident doubling and the hospitality tax can change the total quickly for a restaurant or lodging operation. Build those figures into your budget before you sign a lease.

Special Situations: Savannah River Site Contractors

If your company holds work at the Savannah River Site, a federal facility near Aiken, ask the city and your contracting office whether site work changes your license or registration requirements. Do not assume an Aiken business license covers any site-specific obligations.

When to Get Professional Help

Talk to a qualified attorney before choosing an entity type or drafting an operating agreement. Talk to a CPA before you set up hospitality tax filings, decide how to report gross receipts, or choose between LLC and corporate tax treatment. A professional can review your specific facts, and nothing in this guide replaces that advice.