Hotel / Motel Permits & Licenses in Mount Pleasant, SC

Complete guide to permits and licenses required to start a hotel / motel in Mount Pleasant, SC. Fees, renewal cycles, and agency contacts.

Articles of Organization Filing (LLC Formation)

South Carolina Secretary of State
Required
Fee: $110.00-$110.00
Renewal: one time
Type: registration

Required for all LLCs. Annual report required separately (see below).

Annual Report (Business Entity Renewal)

South Carolina Secretary of State
Required
Fee: $25.00-$25.00
Renewal: annual
Type: registration

Applies to all active LLCs. Filing maintains good standing.

Assumed Name (DBA) Registration

South Carolina Secretary of State
May Apply
Fee: $10.00-$10.00
Renewal: one time
Type: registration

Renewal not required but must be re-filed if name changes. Search availability first.

Transient Accommodation Tax Registration (State Sales Tax on Lodging)

South Carolina Department of Revenue
Required
Fee: $0.00-$0.00
Renewal: one time
Type: registration

Hotels/motels must register to collect and remit 5% state TAT + local taxes (avg. 2-7%). Monthly/quarterly filing based on revenue.

Hotel Occupancy License

South Carolina Department of Health and Environmental Control (DHEC)
Required
Fee: $100.00-$100.00
Renewal: annual
Type: license

Required for all hotels/motels offering overnight lodging. Involves plan review, inspections for sanitation, water, pool (if applicable).

State Business License

South Carolina Department of Revenue
Required
Fee: $25.00-$25.00
Renewal: annual
Type: license

Administered locally but state oversight. Fee schedule based on location/revenue; hotels typically $25+.

South Carolina Sales and Use Tax Permit

South Carolina Department of Revenue
Required
Renewal: one time
Type: registration

Hotels and motels must collect state sales tax on room rentals. South Carolina imposes a 7% state sales tax on accommodations. This registration is mandatory for all businesses selling taxable goods or services.

South Carolina Income Tax Withholding Registration

South Carolina Department of Revenue
May Apply
Renewal: one time
Type: registration

Required for all employers in South Carolina to withhold state income tax from employee wages. Hotels/motels with staff must register.

South Carolina Unemployment Insurance Tax Registration

South Carolina Department of Employment and Workforce
May Apply
Renewal: one time
Type: registration

All employers with one or more employees must register. Employers pay unemployment insurance tax; rate varies based on experience rating (0.05% to 6.2% of first $14,000 in wages per employee).

South Carolina Annual Report and Corporate License Fee (LLC)

South Carolina Secretary of State
Required
Fee: $25.00-$25.00
Renewal: one time
Type: registration

All LLCs in South Carolina must file an annual report and pay a corporate license fee. This is not a franchise tax but a flat fee based on capital structure. Applies to all LLCs regardless of industry.

South Carolina Accommodations Tax (State Level)

South Carolina Department of Revenue (SCDOR)
May Apply
Renewal: one time
Type: registration

In addition to the 7% state sales tax, hotels and motels must collect a 5% state accommodations tax on room rentals. Total effective tax rate is 12% before local taxes. Required under S.C. Code § 12-36-2120.

Local Tourism/Lodging Tax

Local County or Municipal Government
May Apply
Renewal: one time
Type: registration

Many counties (e.g., Horry, Charleston, Greenville) impose an additional local accommodations tax to fund tourism promotion. Businesses must register with the local treasurer or auditor. For example, Horry County adds up to 3% local tax. See SC Association of Counties resource for jurisdiction-specific rates.

Local Business License or Privilege Tax

Varies by municipality
May Apply
Fee: $25.00-$500.00
Renewal: one time
Type: registration

Most cities and counties in South Carolina require a local business license or privilege tax for hotels/motels. For example, the City of Myrtle Beach requires a business license for lodging establishments. Fees and requirements vary widely by location.

Local Accommodations Tax (County/City Level)

Local County or Municipal Government
May Apply
Renewal: one time
Type: registration

Many counties (e.g., Horry, Charleston, Greenville) impose an additional local accommodations tax on hotel/motel room rentals. Registration is required with the local county treasurer or auditor. For example, Horry County imposes up to 3% local tax. Businesses must register separately in each jurisdiction. See SCDOR's accommodations tax page for state rules and county contacts for local registration.

County Business License

South Carolina Association of Counties (SCAC) - County Directory
Required
Fee: $25.00-$500.00
Renewal: annual
Type: license

All SC counties require a business license for hotels/motels; contact specific county treasurer (e.g., Charleston County: https://www.charlestoncounty.org/departments/treasurer/business-license.php). Fees based on gross receipts.

Municipal Business License

City of Charleston Business License
May Apply
Fee: $100.00-$100.00
Renewal: annual
Type: license

Required in most SC municipalities for hotels; see city-specific codes (e.g., Greenville: https://www.greenvillesc.gov/182/Business-Licenses). Confirm location.

Zoning Compliance / Use Permit

Example - Greenville County Zoning
Required
Fee: $200.00-$500.00
Renewal: one time
Type: permit

Hotels/motels must comply with local zoning ordinances (e.g., Charleston Zoning Ordinance Sec. 54-231: https://library.municode.com/sc/charleston/codes/code_of_ordinances?nodeId=CD_ORD_CH54ZO_ARTIIIGEUSDI_S54-231HO). Verify property zoning.

Building Permit

SC Building Codes Council
May Apply
Fee: $50.00-$50.00
Renewal: one time
Type: permit

Required for any building changes; e.g., Richland County: https://www.richlandcountysc.gov/Departments/Building-Construction-Services. Follow SC Building Code (2021 edition).

Sign Permit

City of North Charleston Planning
May Apply
Fee: $50.00-$200.00
Renewal: one time
Type: permit

Governed by local sign ordinances (e.g., Sec. 54-513 Charleston). Size, lighting restrictions apply to hotels.

Health Department Permit (Public Lodging)

SC Department of Health and Environmental Control (DHEC) - Local County Offices
Required
Fee: $150.00-$300.00
Renewal: annual
Type: permit

All hotels/motels require DHEC lodging permit (Regulation 61-45); inspections for sanitation, linens, pools. Local DHEC offices enforce (e.g., Charleston: https://scdhec.gov/regions/lowcountry).

Fire Department Inspection / Permit

Local Fire Marshal's Office
Required
Fee: $50.00-$250.00
Renewal: annual
Type: permit

Required for new/renovated hotels; annual inspections often. Comply with NFPA/SC Fire Code (e.g., Greenville Fire: https://www.greenvillesc.gov/181/Fire).

Family and Medical Leave Act (FMLA) Compliance

U.S. Department of Labor (DOL)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Eligible employees are entitled to up to 12 weeks of unpaid, job-protected leave for qualifying reasons (e.g., birth of child, serious health condition).

I-9 Employment Eligibility Verification

U.S. Department of Homeland Security (DHS)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: permit

Form I-9 must be completed for every employee, regardless of citizenship. E-Verify is not mandatory for hotels unless required by state law or federal contract.

FCC Regulation of Emergency Telephones in Guest Rooms

Federal Communications Commission (FCC)
May Apply
Renewal: one time
Type: permit

Guest room telephones must allow direct access to 911 without requiring a room number, access code, or operator. Applies to all guest rooms with in-room phones.

Certificate of Occupancy

Local Building Official
May Apply
Renewal: one time
Type: permit

Confirms zoning, building, fire, health compliance. E.g., Columbia: https://columbiasc.gov/business/building-permits-occupancy/.

Fire Alarm / Sprinkler Permit

Local Fire Marshal
May Apply
Fee: $50.00-$200.00
Renewal: one time
Type: permit

Mandatory for assembly/lodging occupancies per SC Fire Code. Annual monitoring permit may apply.

Parking Compliance Permit

Local Planning/Transportation Department
May Apply
Fee: $100.00-$500.00
Renewal: one time
Type: permit

Zoning codes specify parking ratios; traffic study may be needed for large hotels.

Workers' Compensation Insurance

South Carolina Workers' Compensation Commission
May Apply
Fee: $1000.00-$3000.00
Renewal: one time
Type: certificate

Required for employers with four or more employees in South Carolina, including part-time workers. Sole proprietors and partners are not required to cover themselves unless they opt in. Corporate officers may elect exemption under SC Code § 42-7-30. Coverage must be obtained from a licensed insurer or approved self-insurance program.

General Liability Insurance

None (not state-mandated)
May Apply
Fee: $500.00-$1500.00
Renewal: one time
Type: certificate

While not universally required by South Carolina state law, many municipalities, property owners, and franchisors require general liability insurance as a condition of operation. Hotels are high-risk for premises liability and thus commonly required to carry this coverage. Not a blanket legal mandate but effectively necessary for operation.

Commercial Auto Insurance

South Carolina Department of Motor Vehicles (SCDMV)
May Apply
Fee: $1200.00-$2500.00
Renewal: one time
Type: certificate

Required under South Carolina's Financial Responsibility Law (SC Code § 56-9-910). Minimum liability coverage: $25,000 bodily injury per person, $50,000 per accident, $25,000 property damage. Applies to all vehicles used for business purposes, including shuttle vans or service vehicles.

Liquor Liability Insurance

South Carolina Department of Revenue
May Apply
Fee: $500.00-$1500.00
Renewal: one time
Type: certificate

While not always listed as a standalone insurance mandate, the South Carolina Alcohol and Other Drug Abuse Services (ADAS) Act and local alcohol licensing boards commonly require proof of liquor liability insurance (also called dram shop insurance) as a condition of obtaining or renewing a retail alcohol license. Coverage typically required: $250,000–$1,000,000 per incident.

Surety Bond for Alcohol License

South Carolina Department of Revenue
May Apply
Fee: $100.00-$500.00
Renewal: one time
Type: certificate

A surety bond may be required as part of the alcohol license application process, particularly for certain license types (e.g., Class C Retail License). Bond amounts vary by license class and local jurisdiction. The bond ensures compliance with state alcohol laws.

Professional Liability / Errors and Omissions Insurance

None
Required
Fee: $500.00-$1200.00
Renewal: one time
Type: certificate

Not legally required by South Carolina law for hotels. However, it is strongly recommended to cover claims of negligence, misrepresentation, or failure to deliver services. Often required by franchisors or management contracts. Not a regulatory mandate.

Product Liability Insurance

None
May Apply
Fee: $500.00-$2000.00
Renewal: one time
Type: certificate

Not specifically required by South Carolina law, but risk exposure increases with product sales. General liability policies typically include product liability coverage. Recommended but not legally mandated unless contractually required.

Fire and Life Safety Compliance (Implied Insurance/Bonding Implication)

South Carolina State Fire Marshal
May Apply
Fee: $100.00-$300.00
Renewal: one time
Type: certificate

While not an insurance mandate per se, compliance with fire codes (e.g., NFPA 101 Life Safety Code) is enforced and often required by insurers as a condition of coverage. Non-compliance can void policies. The State Fire Marshal conducts inspections and may require proof of compliance, indirectly affecting insurance eligibility.

Commercial Property Insurance

South Carolina Department of Insurance
May Apply
Fee: $800.00-$2000.00
Renewal: one time
Type: certificate

Covers building, furnishings, equipment, and inventory from fire, theft, and covered perils. Often bundled with business interruption insurance. Required by most hotel franchisors and lenders.

Cyber Liability Insurance

South Carolina Department of Insurance
May Apply
Fee: $1000.00-$3000.00
Renewal: one time
Type: certificate

Not currently required by state law, but increasingly required by payment processors, franchisors, and insurers. South Carolina’s Personal Information Protection Act (SC Code § 39-1-140) mandates breach notification, which can be financially devastating without insurance.

Obtain an Employer Identification Number (EIN)

Internal Revenue Service (IRS)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: registration

Even single-member LLCs without employees may need an EIN to open a business bank account or if electing corporate taxation. EIN is mandatory for payroll tax reporting.

Federal income and self-employment tax obligations for LLC

Internal Revenue Service (IRS)
Required
Renewal: one time
Type: filing

Multi-member LLCs taxed as partnerships must file Form 1065. Single-member LLCs are disregarded entities and report income on Schedule C. LLCs may elect corporate taxation (Form 1120).

OSHA Workplace Safety Compliance

Occupational Safety and Health Administration (OSHA)
May Apply
Renewal: one time
Type: permit

Hotels must maintain OSHA injury logs (Form 300) if 10+ employees. Required to provide hazard communication training, emergency action plans, and safe equipment handling (e.g., cleaning chemicals, electrical systems).

Americans with Disabilities Act (ADA) Title III Compliance

Department of Justice (DOJ)
Required
Renewal: one time
Type: permit

Hotels must comply with ADA Standards for Accessible Design (28 CFR Part 36). Includes accessible guest rooms, public restrooms, registration desks, and pathways. New construction and alterations must meet current standards.

EPA Asbestos National Emissions Standard for Hazardous Air Pollutants (NESHAP)

Environmental Protection Agency (EPA)
May Apply
Fee: $300.00-$1000.00
Renewal: one time
Type: permit

Hotels built before 1981 may contain asbestos. Contractors must be certified. Notification required to EPA or delegated state at least 10 working days before work.

EPA Lead-Based Paint Renovation, Repair, and Painting Rule (RRP)

Environmental Protection Agency (EPA)
May Apply
Fee: $100.00-$200.00
Renewal: one time
Type: permit

Contractors must be EPA-certified and follow lead-safe work practices. Applies to guest room updates, bathroom remodeling, etc.

FTC compliance with advertising and consumer protection laws

Federal Trade Commission (FTC)
Required
Renewal: one time
Type: permit

Hotel advertising (e.g., online listings, pricing, amenities) must be truthful and not misleading. Must disclose material terms (e.g., resort fees, cancellation policies). Applies to all marketing channels including websites and third-party platforms.

Fair Labor Standards Act (FLSA) compliance

Department of Labor (DOL)
May Apply
Renewal: one time
Type: permit

Covers minimum wage ($7.25/hour), overtime (1.5x regular rate after 40 hours), and child labor restrictions. Hotels must maintain accurate time and payroll records for at least 3 years.

Step-by-Step Compliance Guide

  1. Secure an Employer Identification Number (EIN) from the IRS, which is essential for tax purposes and establishing your business entity.
  2. Comply with OSHA General Industry Safety Standards (29 CFR 1910) to ensure a safe working environment for your employees.
  3. Adhere to the Americans with Disabilities Act (ADA) Title III Accessibility Requirements for Lodging, ensuring your hotel is accessible to guests with disabilities.
  4. Understand and follow the Federal Trade Commission (FTC) Truth-in-Advertising and Consumer Protection Rules to avoid deceptive practices.
  5. Maintain accurate Record Retention for Tax Purposes as required by the IRS, keeping all financial documents organized.
  6. Ensure compliance with FTC Hotel Advertising and Booking Compliance, specifically regarding bait-and-switch tactics and misleading advertisements.
  7. Fulfill Federal Income and Self-Employment Tax Filing obligations if operating as an LLC, with potential fees around $160400.00.
  8. Address Federal Consumer Protection requirements related to online booking transparency and truthful advertising practices.

Common Mistakes to Avoid

  • Failing to obtain an EIN can result in penalties and difficulties with banking and tax filing.
  • Ignoring OSHA standards can lead to workplace accidents, fines, and legal repercussions.
  • Non-compliance with ADA Title III can result in lawsuits and significant financial penalties, potentially reaching $200000.00.
  • Misleading advertising practices can trigger investigations and penalties from the Federal Trade Commission.
  • Improper record retention can lead to issues during tax audits and potential penalties from the IRS.

Frequently Asked Questions

What ADA compliance requirements apply to hotels in Mount Pleasant?

Hotels must comply with ADA Title III, ensuring accessibility for guests with disabilities, including accessible rooms, public areas, and communication methods. The Department of Justice (DOJ) enforces these standards, and compliance costs can vary, but may be between $1500.00 and $5000.00.

What are the potential penalties for violating FTC advertising rules?

The Federal Trade Commission (FTC) can impose significant penalties for deceptive advertising, including fines and requirements for corrective advertising. These rules cover areas like pricing transparency and accurate representation of amenities.

Is there a cost associated with obtaining an EIN from the IRS?

While the IRS does not charge a fee to obtain an EIN, there may be costs associated with using a third-party service to assist with the application process. It is a required step for operating a business.

What kind of records should a hotel retain for tax purposes?

Hotels should retain records related to income, expenses, payroll, and other financial transactions for several years, as specified by the IRS. Proper record retention is crucial for accurate tax filing and avoiding potential audits.

What are the implications of not complying with OSHA standards?

Failure to comply with OSHA standards can result in citations, fines, and potential legal action. More importantly, it can create unsafe working conditions for employees, leading to accidents and injuries.

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