Frequently Asked Questions
for Business Licenses

How do I determine if I need a Business License?
Every business operating within the Town of Hilton Head Island limits shall be required to have a Busines License for each location including home occupations.

How do I determine if my location is zoned for my type of business?
Please contact the Planning Department at Town Hall (843) 341-4681 to discuss location and options.

How do I find assistance for new business owners?
You may contact SCORE (Service Corps of Retired Executives) at the Chamber of Commerce (843)785-3673, or you may call SBDC (Small Business Development Center) at the University of South Carolina (843)208-8259.   

How do I determine how many rental units I can rent out without obtaining a Business License?
Starting in 2007, according to our ordinance, you are required to obtain a Business License if you own and rent 2 or more residential rental units long or short term within the Town.

How do I determine if while working under someone else who has a Business License would require me to obtain a Business License?
If you are not on that person's payroll with taxes deducted out of your paycheck and receive a 1099 form, you are considered self-employed and you would need a Business License.

How do I register the name of my business?
The Town does not register names of business, but you can check with us by calling (843) 341-4610 to see if anyone is presently using your potential name within the Town of Hilton Head Island. You may also check with the Secretary of State to check if anyone has Incorportated the name you would like to use and the laws governing this issue.

How do I set up an account to pay my State Sales Tax and State Accommodations Tax ?
Contact the South Carolina Department of Revenue at (803) 898-5788 or www.sctax.org to set up your account.

What is the Beach Preservation Tax?
A uniform fee equal to 2% is imposed on the gross proceeds derived from the rental for any rooms (excluding meeting rooms), campgrounds spaces, recreational vehicle spaces, lodgings or sleeping accommodations furnished to transients by any hotel, inn, condominium, motel, "bed and breakfast", residence or any other place in which rooms, lodgings or sleeping accommodations are furnished to transients within the Town of Hilton Head Island, South Carolina.

What is Accommodations Tax?
A local accommodations tax equal to 1% is hereby imposed on the gross proceeds derived from the rental of any rooms (excluding meeting rooms), campgrounds spaces, recreational vehicle spaces, lodgings or sleeping accommodations furnished to transients by any hotel, inn, condominium, motel, "bed and breakfast", residence or any other place in which rooms, lodgings or sleeping accommodations are furnished to transients within the Town of Hilton Head Island, South Carolina.

Who is considered a transient?
Anyone leasing or renting sleeping accommodations for a period of less than ninety (90) days.

What makes up the 10% tax that is charged on rentals?

How do I pay the SC Department of Revenue ?
Anyone needing to set up an State Accommodations Tax account can get the necessary form from their website at 803-898-5000 or www.sctax.org. The form is the SCTC111. Complete the form and send in $50.00 for the license. The form gives a number to contact the Registration Section with any questions.

How do I pay the Town of Hilton Head Island Beach Preservation Fee and Accommodations Tax?

• The Beach Preservation & Accommodations Tax shall be remitted to The Town of Hilton Head Island, South Carolina.
• Payment of the Beach Preservation & Accommodations Tax collected the first quarter (January, February, March) shall be due on April 20th of the calendar year.
• Payment of the Beach Preservation & Accommodations Tax collected the second quarter (April, May, June) shall be due on July 20th of the calendar year.
• Payment of the Beach Preservation & Accommodations Tax collected the third quarter (July, August, September) shall be due on October 20th of the calendar year.
• Payment of the Beach Preservation & Accommodations Tax collected the fourth quarter (October, November, December) shall be due on January 20th of the calendar year immediately following.

What if my Beach Preservation Fee and Accommodations Tax is delinquent?
Person failing to remit payment by the due date shall pay a penalty of 5% of the unpaid amount for each 30 day period or portion thereof until Beach Preservation & Accommodations Tax are paid in full.

Do I need a Business License?  Yes! Starting in 2007, if you rent 2 or more properties.
Contact the Business License office for application at (843)341-4610.