City of Charleston Business License: Rates, Hospitality Tax and STR Permits

If you plan to sell, rent or operate a business inside the City of Charleston, you will likely need a city business license. South Carolina has no general statewide business license, so for most local operators the license that matters comes from the city. This guide covers the 2026-27 license year rates, the 2% hospitality and accommodations taxes, the three short-term rental (STR) permit categories, and the steps to file everything in the right order.

Informational content only. This article is not legal or tax advice. Confirm your situation with City of Charleston Revenue Collections, and talk to a qualified attorney or CPA before you make decisions with tax or liability consequences.

Know Which Filing You Are Making

Most confusion comes from mixing up three separate filings. Keep them apart:

• State entity filing. An LLC files Articles of Organization with the South Carolina Secretary of State for a $110 filing fee through Business Entities Online. That registration is not a business license. Sole proprietors and general partnerships do not file organizing documents with the Secretary of State at all.
• Local business license. The city issues this license, which lets you operate within city limits. Most cities levy a local business license tax, and so do only nine counties, including Charleston County.
• Retail license. If you sell tangible goods, you need a Retail License from the South Carolina Department of Revenue (SCDOR). The fee is a one time, nonrefundable $50 per location.

Materials and Information to Gather First

Pull these items together before you open the city portal. A missing item is the most common reason an application stalls.

• Your legal business name, entity type and Secretary of State filing number, if you formed an LLC or corporation. You can search the name in the SC Secretary of State business search.
• A federal EIN from the IRS, plus any trade name (DBA) you plan to use. South Carolina has no state DBA filing. The trade name is recorded locally with your city license and listed on your EIN application and your SCDOR Business Tax Application.
• The business street address. For a leased space, have the landlord's name and the lease start date ready.
• An honest estimate of gross receipts for the license year, because the city fee is calculated from it.
• Government ID for the owner or authorized signer.
• For a home-based business, the City of Charleston home occupation application.
• For a new location, a certificate of occupancy request.

Step 1: Confirm Zoning Before You Sign Anything

Charleston zoning rules decide what you can operate at a given address. Check the intended use before you sign a lease or buy a building, because a business license does not override a zoning restriction. Ask Revenue Collections whether a certificate of occupancy is required for your location. If you plan to work from home, submit the home occupation application and ask what limits apply to customer visits, deliveries and signage before you open.

Step 2: Estimate Gross Receipts and Calculate the Fee

City license fees are based on your gross receipts. For the 2026-27 license year, the City of Charleston Class 1 rate is $32 on the first $2,000, plus $1.55 for each $1,000 after that. Under that reading, a business with $100,000 in gross receipts would owe about $184 before any penalties. Use the table below as a planning guide.

Item	2026-27 Charleston amount
Class 1 base fee	$32 on the first $2,000 of gross receipts
Class 1 variable fee	$1.55 per $1,000 of gross receipts above that
Receipts above $4 million	Reduced rate of 80% applies. Confirm how it is applied to your total
Non-resident businesses	License fee is doubled

Treat your result as an estimate until Revenue Collections confirms it. Rates change each license year, so do not rely on a prior year's figure.

Step 3: Apply Through the City Portal or in Person

Apply through the city's Tyler EnerGov online portal, or visit Revenue Collections at 2 George St. Have your EIN, your gross receipts estimate and your entity information ready to enter or upload. Itinerant contractors are the exception. That license is issued per project and cannot be obtained online, so contact Revenue Collections to arrange it before the project starts.

Step 4: Understand the Hospitality and Accommodations Taxes

If you sell prepared food and drink or rent lodging, two city taxes may apply. Each is 2%:

• Hospitality tax, 2%. Generally applies to prepared meals and beverages sold in the city.
• Accommodations tax, 2%. Applies to lodging charged to guests.

For lodging in the Charleston County portion, the combined lodging rate totals 14%. Ask Revenue Collections for the breakdown of each component before you set room rates, and confirm how each tax is collected and remitted. The city also levies a tour tax. If you operate tours, ask whether it applies to your business and how it is reported.

Step 5: Short-Term Rental Permits

Charleston issues short-term rental permits in three categories, and the right one depends on your property and how you operate it. STR licenses are assessed under Class 7 at $64 plus $3.90. Confirm the unit basis for the $3.90 charge and which category fits your property before you list the unit. Review the city's Charleston short-term rental guidance and check your zoning, because the permit and the zoning check are separate requirements.

Step 6: Calendar Your Renewal and Avoid Penalties

Charleston business license renewal penalties for the 2026-27 license year rise in steps:

If paid on or after	Late penalty
July 1, 2026	5%
August 3, 2026	25%
September 2, 2026	35%

The state's framework for local licenses uses a May 1 to April 30 license year, with renewals handled at localblrenewal.com. Because the city's penalty dates begin July 1, confirm your exact due date with Revenue Collections instead of assuming it from the state calendar. Set a reminder for the first penalty date, not the last.

Other Licenses That May Apply

• Food businesses. Retail food permits come from the South Carolina Department of Agriculture, not DHEC, which was split in 2024. Many food operators search for the wrong agency, so start with the Department of Agriculture.
• Contractors. Commercial contractor licenses start above $10,000 in project value, and residential specialty registration starts above $500. Confirm current requirements with the state agency that handles contractor licensing before you bid on work.

Common Mistakes to Avoid

• Searching too broadly. A search for charleston business license alone often returns Charleston, West Virginia. Use city of charleston sc or charleston sc business license, and confirm you are on a City of Charleston, South Carolina page before you pay anything.
• Treating the Secretary of State filing as your business license. The entity filing and the local license are separate.
• Signing a lease before the zoning check. Fixing a use problem after you have committed to a space is far more expensive than checking first.
• Underestimating gross receipts. Penalties add up quickly once the late schedule starts, so a conservative but realistic estimate is safer.
• Missing the non-resident doubling. If your business is based outside the city, the fee is doubled.
• Assuming an LLC files an annual report. A standard LLC files no annual report and pays no franchise or annual tax. An LLC that elects corporate tax treatment has separate filing duties, so confirm your election with a CPA.
• Paying late by a few weeks. The penalty jumps from 5% to 25% on August 3, 2026, and reaches 35% on September 2, 2026.

What to Expect When You Finish

If you work through these steps in order, you may end up with a city license matched to your estimated receipts, a zoning check on file and a renewal date on your calendar. These steps are designed to help you avoid the most common delays and penalties, but results depend on your business type, location and receipts. Processing times are not set out here, so ask Revenue Collections for a current estimate rather than planning around a fixed number of days. Multi-location operations, businesses that combine food and lodging, and tour operators often benefit from a professional review before filing.

Next Steps

Gather your materials, confirm zoning, estimate your receipts and then submit the city application. For entity questions, use the South Carolina Secretary of State business entity page. For tax registration, the South Carolina Department of Revenue is the official source. The South Carolina Small Business Development Centers can help you plan the steps. For lease, zoning and entity decisions, consult a qualified attorney, and for hospitality tax and lodging questions, consult a qualified CPA.