Hilton Head Island Business License: Rates, Beach Fee and STR Permits

Opening a business or renting out a home on Hilton Head Island means dealing with the Town before you start earning. A Hilton Head business license is a local requirement, separate from the state paperwork you file with the Secretary of State. Most owners also run into the Town’s lodging and hospitality taxes, the 2% Beach Preservation Fee, and a separate short-term rental (STR) permit. This guide covers what to gather, the steps in order, the rates for the 2026-27 license year, and the mistakes that cause delays.

South Carolina has no general statewide business license. The Town of Hilton Head Island handles local licensing through Town Revenue Services at 1 Town Center Ct. If you are still forming your company, complete the state filing first so your legal name is settled before you apply locally.

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What you need before you start

Gather these items before you contact Revenue Services. A missing item usually means a second trip or a delayed license.

Legal business name and entity type. If you have not formed an LLC yet, the Secretary of State charges a $110 filing fee for Articles of Organization.
Federal EIN. Get it from the IRS. If you will operate under a trade name, have that name ready for the application.
SCDOR Business Tax Application account. You set this up on MyDORWAY, and you will use it for sales tax and other state tax registrations.
Estimated gross receipts. The Town’s license fee is tied to your receipts, so have a realistic annual figure ready.
Business and rental addresses. List the physical location of the business. If you plan to rent a home, have that property address and its bedroom count ready too.
$10 application fee. Confirm with Revenue Services how the Town accepts payment before you go.

Step-by-step: getting your Hilton Head business license

Settle your name and entity first. A South Carolina LLC name must include a term such as “limited liability company” or “limited company,” or an abbreviation such as LLC, L.L.C., LC or L.C., and it must be distinguishable from other registered names. Search the name on the Secretary of State business search before you file. If you need time, you can reserve a name for $25. The reservation lasts 120 days and cannot be renewed.
Handle any DBA at the local level. South Carolina has no state DBA filing, and the Secretary of State does not register trade names. Record your DBA with the county or municipality, which usually happens on the local business license itself. Then list the same trade name on your EIN application and your SCDOR Business Tax Application. The DBA fee varies by locality, so ask the Town what it charges.
Get your EIN and SCDOR account. Apply for the EIN with the IRS, then complete the Business Tax Application on MyDORWAY. Use the same trade name you recorded locally. Set up the state account before you need a sales tax permit, not after your first sale.
Confirm your license class with Revenue Services. The rates below assume Class 1, the low-rate class. Bring your estimated gross receipts and a plain description of what you sell or do. Ask whether the non-resident rate applies to you, because it doubles the fee.
Submit the application and pay the fees. Visit Town Revenue Services at 1 Town Center Ct and ask whether new applications can be filed online or must be filed in person. Renewals run through the Town's Progressive Cloud system, and the Town is also listed on the state renewal site, localblrenewal.com. Pay the $10 application fee and the license fee the way the Town directs.
Register for sales tax if you sell tangible goods. Retailers need a SCDOR Retail License, a one-time nonrefundable $50 fee per location, applied for through the Business Tax Application. Details are in the sales tax section below.
Register the lodging and hospitality taxes if they apply. Businesses selling prepared meals and beverages owe the 2% hospitality tax. Lodging owes the 1% accommodations tax and the 2% Beach Preservation Fee. Ask Revenue Services which of these your business owes and how each is reported, since the scope of each one matters.
Apply for an STR permit if you rent a home or room. The short-term rental permit is separate from your business license and costs $150 per bedroom per year. Count bedrooms carefully before you apply, because the fee multiplies with each one. Confirm with the Town whether other conditions apply to your property.
Check trade certificates and state licenses. Irrigation contractors working in the Town need a local irrigation trade certificate. Confirm its fee and requirements with the Town. State commercial contractor licenses start above $10,000 in work, and residential specialty registration starts above $500, so confirm with the state licensing agency which one covers your work. Food sellers need a retail food permit from the SC Department of Agriculture, not DHEC, which was split in 2024.
Calendar your renewal. South Carolina local license years run May 1 to April 30, and renewals are due April 30. For the 2026-27 license year, that deadline is April 30, 2027.

Hilton Head business license rates for 2026-27

These are the figures you need to budget for the current license year. Confirm each one with the agency named before you commit money.

Item	Amount	Notes
Town business license application	$10	Application fee
Class 1 license fee (2026-27)	$48.60 on the first $2,000, plus $0.80 per $1,000	Low-rate class; confirm your class with Revenue Services
Non-resident license fee	Double the standard rate	Confirm whether it applies to your business
Hospitality tax	2%	Prepared meals and beverages; confirm scope with the Town
Accommodations tax	1%	Lodging; confirm scope with the Town
Beach Preservation Fee	2%	Confirm which sales it covers with the Town
Short-term rental permit	$150 per bedroom per year	Separate from the business license
SCDOR Retail License	$50 one-time, per location	Nonrefundable; for sellers of tangible goods
LLC Articles of Organization	$110	Secretary of State filing fee
Name reservation	$25	Lasts 120 days, nonrenewable
Irrigation trade certificate	Confirm with the Town	Local certificate for irrigation work

Beach Preservation Fee and hospitality taxes

Visitor taxes are the main reason Hilton Head’s process differs from a typical mainland city. The Town collected about $20.8 million in local accommodations tax in fiscal 2024. Because that money is a large revenue source, keep records of every taxable sale and make sure what you collect matches what you report.

The 2% hospitality tax applies to prepared meals and beverages. The 1% accommodations tax applies to lodging. The 2% Beach Preservation Fee is a separate charge. Ask the Town which sales it covers and when you collect it, because the answer changes how you set up your point-of-sale system and your reporting calendar.

Short-term rental permits

If you list a home or room for short stays, the STR permit is a separate requirement from your business license. It costs $150 per bedroom per year. A four-bedroom house, for example, carries a $600 annual permit fee at that rate. Apply before your first booking, not after, and confirm with the Town whether any inspection, contact, or occupancy requirements apply in addition to the fee.

Hilton Head sales tax

South Carolina’s state sales tax rate is 6%. The Beaufort County figure is also listed at 6%. Before you set prices, confirm the combined rate that applies to your location with the South Carolina Department of Revenue. Many owners quote a price using only the state rate and then find the total is different at checkout. Register for the Retail License early, file returns on the schedule SCDOR assigns, and keep sales records that tie to each return.

Renewing your Hilton Head business license

Renew by April 30 every year. Renewals are handled through localblrenewal.com, so keep your login and account details with your other business records. If your address, ownership, or business activity changes, update the Town before you renew, because the renewal fee depends on the information you submit. State filings follow a different schedule: a standard LLC files no state annual report, while a corporation files its annual report with its SCDOR income tax return.

Tips and common mistakes to avoid

Treating Secretary of State registration as a business license. State registration does not replace the local license. Apply to the Town separately.
Looking for an LLC annual report. A standard LLC files none. An LLC that elects corporate tax treatment must file Form CL-1 and then file its annual report with its SCDOR return.
Filing a state DBA. Record a DBA locally. The exception is limited partnerships and foreign corporations, which may file an assumed name with the Secretary of State.
Assuming the non-resident rate does not apply. Ask Revenue Services directly, because the fee doubles if it does.
Renting before the STR permit is issued. Do not accept bookings until the permit is in hand.
Miscounting bedrooms. The STR fee is $150 per bedroom, so an error affects the total directly.
Quoting prices with only the 6% state rate. Confirm the combined rate for your location first.
Calling DHEC for a food permit. The retail food permit comes from the SC Department of Agriculture.
Missing the April 30 deadline. Put the renewal on your calendar the day you receive your license.

Expected results

With your name, EIN, state tax account, and local license in order, you should be able to open with a clear record of what you owe and when. Online LLC filings through Business Entities Online are typically returned within 24 to 48 business hours, while mailed or in-person filings take longer. Ask Revenue Services for its current processing time before you set an opening date, since local turnaround can differ from state turnaround. Keeping organized records from the start may make your first renewal and any later tax review simpler.

Official resources

Disclaimer: This article is informational only and is not legal or tax advice. Fees, deadlines, and rules change, so confirm current figures with Town Revenue Services, the SCDOR, or the South Carolina Secretary of State before you file. For complex situations, such as multiple locations, lodging operations, or an entity tax election, talk with a qualified attorney or CPA.