Myrtle Beach Business License: Highest Rates, Hospitality Fees and STR Zones

If you plan to sell, rent, serve, or contract inside Myrtle Beach, you need a city business license before you open or take your first customer. The City of Myrtle Beach levies its own business license tax, and its Class 1 rate is the highest among the 21 largest cities in South Carolina. On top of that, food, drink, lodging, and admissions carry hospitality fees, and short-term rentals are limited by zoning. This guide walks through the process in order using the figures for the 2026-27 license year.

This article is informational, not legal or tax advice. Rates, zoning districts, and deadlines can change. For a complex situation, such as buying a property to use as a short-term rental or operating in several locations, talk with a qualified attorney or CPA before you commit.

Materials and information you need before you start

Gather these items before you open the application. Missing details are the most common reason a file stalls.

• Legal business name and entity type. A sole proprietorship, partnership, LLC, and corporation each have different filing paths. An LLC name must include limited liability company or limited company, or an accepted abbreviation such as LLC or L.C.
• Physical address with suite number. Zoning review depends on the exact parcel, so use the address where you will actually operate.
• A plain description of your activity. State whether you sell goods, serve food or drink, rent lodging, offer admissions, or do contracting work.
• Gross receipts figure. The per-$1,000 portion of the Class 1 rate depends on receipts, so have a realistic projection or prior-year number ready. Ask the Business License Division which receipts figure it uses.
• Secretary of State paperwork, if applicable. If you formed an LLC or corporation, you file with the South Carolina Secretary of State. Articles of Organization for a domestic LLC carry a $110 filing fee. A standard LLC files no annual report.
• A SCDOR Business Tax Application account. If you sell tangible goods, you will request a state Retail License through the South Carolina Department of Revenue on MyDORWAY.
• Funds for every fee on the schedule below. Confirm accepted payment methods with the Business License Division at 921 N Oak St before you visit.

Step 1: Confirm whether your business is inside city limits

Your address determines your rate. Businesses located inside the city pay the in-city Class 1 schedule. Businesses located outside city limits pay a separate out-of-city rate of $190 plus $5.00. Do not assume a Myrtle Beach mailing address puts you inside the city. Check the parcel with the city before you pick a rate.

Step 2: Get zoning approval before anything else

Every license application requires approval from the zoning administrator, with no exceptions for small or home-based businesses. This is the step that most often delays new owners, so start here rather than last. Look up the zoning district for your parcel, then ask whether your intended use is allowed there. If you plan to offer short-term rentals, know that they are barred in R zones except the RMV district. Ask about this before you sign a lease or closing documents.

Step 3: Determine your class and rate

Myrtle Beach uses classes to set your license tax. Class 1 carries a base charge of $95 on the first $2,000 of receipts, plus $2.50 for each additional $1,000. Because this is the highest Class 1 rate among the 21 largest South Carolina cities, budget carefully. Confirm your class with the Business License Division before you calculate anything, since the class assigned to your business type controls the rate.

As an illustration only, a business with $100,000 in receipts that falls under Class 1 would start with $95 and add $2.50 for each of the 98 additional thousands, for about $340. Ask the office to confirm how the figure is calculated for your receipts.

Step 4: Obtain the state and county permits your activity requires

The city license does not replace state or county requirements. Check each of these that applies to you:

• Retail sellers: The SCDOR Retail License costs a one-time, nonrefundable $50 per location. Apply through the Business Tax Application on MyDORWAY, using the SCDOR retail license page.
• Food service: Retail food permits come from the South Carolina Department of Agriculture, not DHEC. DHEC was split in 2024, so older guides that send food businesses to DHEC are out of date.
• Contractors: Commercial contractor licenses are required for work above $10,000. Residential specialty registration is required for work above $500. Confirm the issuing board for your trade with the SC Department of Labor, Licensing and Regulation.

Step 5: Submit your application to the Business License Division

Bring the completed application, your zoning approval, your state paperwork, and payment to the Business License Division at 921 N Oak St. Bring copies of anything you have filed with the state, since the division will check that the legal name on your license matches your Secretary of State or SCDOR records. If you operate under a trade name, record it with the city or county on your local license, and list it as a trade name on your EIN application and your SCDOR Business Tax Application. South Carolina does not have a state DBA filing, and the Secretary of State does not register DBAs.

Step 6: Plan for the hospitality fees

Hospitality fees are often the largest surprise for new restaurants, hotels, and attractions. Build them into your prices before you open.

• Food and drink: A 1% city hospitality fee plus a 1.5% Horry County hospitality fee, for a combined 2.5% on applicable sales. On $500,000 in food and drink sales, that is $12,500 in fees.
• Lodging: A 0.5% A-tax plus a 1% city hospitality fee. The 1.5% Horry County hospitality fee also applies to lodging inside city limits, so the combined local charge on lodging is 3%, on top of state sales and accommodations taxes.
• Admissions: The 1.5% Horry County hospitality fee applies to admissions inside city limits.
• Tourism Development Fee: A 1% Tourism Development Fee sales tax applies, bringing the total rate to 9% on applicable sales.

These are charges on applicable sales, not on your profit. Ask the city and the SCDOR which sales qualify and how each fee is reported and remitted. Do not assume that a figure on a rate sheet covers every item you sell.

Step 7: Understand the short-term rental rules before you list

Short-term rental zoning needs careful checking in Myrtle Beach. Because STRs are barred in R zones except the RMV district, a property that looks ideal on a listing site may not be legal to rent. The 2021 Horry County settlement also shaped how short-term rental rules are applied in the area. Ask the zoning administrator for the current terms that apply to your parcel, and get the answer in writing.

Step 8: Calendar your renewal

The license year runs May 1 to April 30, and renewals are due April 30. Renew through localblrenewal.com, where the South Carolina Revenue and Fiscal Affairs Office hosts local business license renewals. A late renewal carries a penalty of 5% per month starting May 1, so a short delay can add up quickly. Put the April 30 deadline on your calendar at the time you first receive your license, and set a reminder two weeks ahead.

Common mistakes to avoid

• Filing with the Secretary of State and assuming you are licensed. Secretary of State registration is not a business license. You still need the local license.
• Applying before zoning approval. The application is incomplete without it, and a wrong zoning assumption can cost you the lease.
• Pricing without hospitality fees. A 2.5% food fee or a 3% lodging charge changes your margins.
• Using the wrong agency for food permits. Retail food permits come from the Department of Agriculture.
• Listing a short-term rental in an R zone. Confirm the district before you purchase, not after.
• Looking for an LLC annual report. A standard LLC files none with the state.
• Missing the April 30 renewal. The 5% monthly penalty starts May 1.

Expected results

A complete, well-prepared package typically moves through the process with fewer follow-up requests, and that is the main thing within your control. Once zoning approval is in hand and your classification is confirmed, the license itself is usually the simplest step. Ask the Business License Division for the current processing estimate before you plan an opening date. Operating without a license or missing the hospitality fee schedule may lead to penalties, so treat the fees and deadlines above as part of your startup budget rather than an afterthought.

Where to get help

For a first-time owner, the South Carolina Small Business Development Centers offer free advising on formation and planning. For zoning, tax treatment, or a multi-property plan, consult a qualified attorney or CPA who works with South Carolina businesses. Use the information in this guide to prepare your questions, then confirm every figure with the agency that issues it before you pay.