South Carolina has become a magnet for enterprise, hosting over 1,100 international firms. Perfectly situated between New York and Miami, our state boasts a deep-water port, bustling container terminals, and Charleston's international airport, all of which make it a gateway for worldwide commerce. Leading companies in automotive, aerospace, technology, and life sciences are increasingly choosing South Carolina as the place to launch or grow their operations.
Owning a business - whether it's a small storefront or a worldwide brand - can be incredibly rewarding. But those benefits come with many hurdles and legal challenges. At Cobb Hammett, our corporate law attorneys in Folly Beach, SC. work alongside business entities to minimize their risk and maximize their profit. Regardless of the size or corporate structure of your organization, we have the experience necessary to provide advice on a variety of business and legal issues.
Corporate law, also known as company law, shapes the entire life cycle of a corporation, from its birth to its daily workings and pivotal moments like mergers, acquisitions, or winding down. It acts as a guiding framework, ensuring that companies play by the rules when it comes to structure, finance, governance, and a web of state or federal regulations, including securities, labor, and environmental standards. At its heart, corporate law orchestrates the interactions between the company, its shareholders, directors, other businesses, and the public, navigating a landscape of intricate transactions and legal responsibilities.
Companies and corporations that operate in South Carolina have to abide by many regulations to minimize legal challenges, receive tax benefits, and more. Working with a corporate lawyer for guidance on these matters isn't just wise - it could be a pivotal decision that affects the life of your business.
Without great legal counsel from the start, business owners are exposed to a range of pitfalls, from poorly drafted agreements and intellectual property conflicts to regulatory missteps. Such mistakes may result in costly lawsuits or financial setbacks that proactive legal advice could have prevented.
Here are a few of the biggest benefits of retaining a corporate law lawyer in Folly Beach, SC:
Partnering with a skilled business attorney from the outset allows entrepreneurs to confidently navigate the hurdles of launching a company. Early legal insight is especially crucial, as it lays down a solid framework that safeguards your interests far into the future.
Take, for instance, the decision around business structureâwhether to form an LLC, sole proprietorship, partnership, or S corporation. Each path comes with its own set of liability protections and tax consequences. Making an informed choice at the outset can lead to long-term savings, minimize risks, and potentially insulate you from personal financial exposure.
One frequent mistake that business owners make is misinterpreting contracts. This can cause unfavorable disputes or terms. Contracts help govern a range of business relationships, like:
Each contract your business enters into is shaped by the unique dynamics between you and the other party involved. For instance, agreements with customers specify deliverables and payment terms, while contracts with consultants or contractors detail the services to be provided and the schedule for compensation. An experienced corporate law attorney can tailor these documents to maximize your company's legal safeguards and minimize potential risks.
Safeguarding your company's intellectual property, like trademarks, copyrights, and patents, requires specialized legal expertise. A corporate business lawyer not only helps secure these rights but also guides you through registration, enforces protections, and drafts strong licensing agreements to leverage your assets.
The world of business is full of potential risks, from financial pitfalls to unexpected legal challenges. Effectively navigating these uncertainties is crucial for preserving your assets, maintaining stability, and ensuring long-term success. By working with a corporate law attorney, you gain a trusted advisor who can pinpoint legal vulnerabilities, recommend compliance best practices, and devise proactive strategies to minimize disputes and safeguard your investments.
At Cobb Hammett, we advise businesses on their legal rights, responsibilities, and obligations. We focus on a variety of challenges and legal issues across industries and represent businesses of all sizes. Our representation extends beyond technical legal advice; we also serve as trusted advisors and counselors, discussing the commercial and practical implications of business decisions.
In fact, business leaders trust our firm to handle many facets of corporate law, including:
A partnership forms when individuals unite to launch a shared business enterprise, pooling their resources and ambitions toward a common goal. Like any close collaboration, partnerships are not immune to conflict. Disagreements over money, hiring decisions, responsibilities, or other core business matters can surface. If unresolved, such disputes may erode profits or even threaten the future of the partnership itself.
Here are just a few reasons why business partners enter into disputes:
A well-crafted partnership agreement that clearly outlines how disputes will be handled is essential for long-term success. If you require support in drafting this type of agreement or need help navigating a current conflict, our team is prepared to guide you.
At Cobb Hammett, we recognize that partnerships often intertwine business and personal dynamics, making disagreements particularly challenging. Our lawyers offer objective legal insight, working to facilitate resolutions between partners or, when necessary, assisting with a fair and orderly dissolution.
Serving as mediators, we aim to settle partnership conflicts amicably, avoiding litigation or court involvement whenever possible and helping to restore productive working relationships. However, if mediation does not lead to a solution, we are equipped to advocate for our client's interests through the litigation process.
Launching a new business or growing an established one comes with excitement and opportunity. Yet, beneath the surface, careful attention must be given to planning, particularly when it comes to choosing the right legal framework for your company. At Cobb Hammett, our business formation attorneys understand that emerging and growing enterprises benefit from experienced legal guidance. We leverage our business insights to help clients identify and implement the optimal structure for their specific goals.
A successful business starts with a structure designed to foster growth and financial stability, while also shielding owners from unnecessary risk if challenges arise. This is why working with a South Carolina business formation lawyer is so valuableâthey offer strategic legal insight to safeguard your assets, reduce tax exposure, and position your business for long-term success.
Gaining a clear grasp of different business entity options is essential for choosing the right path. Every business structure brings its own set of features, benefits, and drawbacks. Our team specializes in crafting customized entity solutions to align with your distinct objectives.
A sole proprietorship stands out for its simplicity and low startup costs â just one person owns and manages the business, with no legal separation between personal and business assets. This ease of formation makes it a popular choice for small, lowrisk ventures. However, the owner assumes full personal responsibility for any business debts or liabilities, exposing personal assets to risk as the business expands or faces challenges.
A Limited Liability Partnership (LLP) lets professionals work together while protecting each partner from personal liability for others' mistakes. Partners share profits, and state laws vary, so expert legal advice is important.
The Limited Liability Company (LLC) stands out for combining strong personal asset protection with adaptable business operations. Members aren't usually personally responsible for company debts or legal claims, and LLCs offer a choice of tax treatments so owners can pick the setup that best fits their needs.
This flexibility and the simpler administrative requirements needed versus those at corporations make LLCs attractive to many small and medium-sized businesses. When it's time to draft an operating agreement, you should always consider working with a corporate law attorney in Folly Beach, SC., who can outline ownership structure, management responsibilities, and financial arrangements among members.
A C Corporation (C Corp) operates as an independent legal entity, distinct from its shareholders. With robust liability protection, this structure is especially attractive to businesses aiming for venture capital investment or a future public offering.
C Corps can attract significant investment by issuing stock to an unlimited number of shareholders, making them well-suited for large or publicly traded businesses. The tradeoff is double taxation: profits are taxed at the corporate level, and dividends are taxed again for individual shareholders.
Complying with a C Corp's intricate legal requirements calls for professional legal guidance. From holding board meetings and keeping detailed records to properly issuing stock, a South Carolina business attorney can help ensure all corporate formalities are met.
An S Corporation (S Corp) lets qualifying businesses pass profits and losses straight to owners' personal tax returns, avoiding corporate tax. This bypasses double taxation seen in C Corps, but S Corps face tight rules: no more than 100 U.S. shareholders and only one class of stock allowed. A business attorney can confirm your eligibility and handle IRS filings so your S Corp stays compliant.
A not-for-profit corporation applying for 501(c)(3) status exists to serve charitable, educational, religious, or scientific causes, not to generate profit. Any extra funds are funneled back into the mission, not distributed to owners. Achieving 501(c)(3) recognition brings tax-exempt status and lets supporters claim tax-deductible donations. Setting up and maintaining a nonprofit involves complex legal steps, making experienced legal help invaluable.
The above is just a brief snapshot of how Cobb Hammett attorneys help form business entities. Some additional entities we help form include:
It's a common misconception that legal worries end after forming a company. In reality, this is when having a business lawyer's proactive advice becomes most crucial. A business attorney serves as a trusted advisor, steering you through South Carolina's legal maze and shielding your company from costly disputes, liabilities, and operational setbacks.
Here are just a few ways that Cobb Hammett can help you thrive after forming your business entity:
Once your business is registered, it has to adhere to South Carolina requirements and rules. Your corporate law attorney will help:
Having well-drafted contracts means you have a solid bedrock of success. Your Cobb Hammett corporate law lawyer in Folly Beach, SC. will create and review documents such as:
In business, disputes are an unfortunate but common occurrence. From disagreements with vendors, competitors, or clients, your corporate law attorney acts as an unflinching advocate on your behalf by:
When a business has more than one owner, a clear agreement is essential to head off disagreements down the road. An attorney can craft a document that covers:
As your business expands, opportunities to acquire other companies or merge with partners may arise. Because these deals involve intricate legal details, having an attorney's guidance is crucial to prevent expensive errors. A Cobb Hammett corporate law attorney in Folly Beach, SC. can help with:
Don't see the corporate law service you need? At Cobb Hammett, we help businesses of all sizes with a wide range of other corporate law needs, including:
Business and corporate deals drive South Carolina's economy, with countless transactions taking place every day. Because corporate structure is so critical, many companies turn to seasoned South Carolina corporate attorneys for guidance and support. At Cobb Hammett, we partner with businesses to reduce risk and boost profitability. No matter your company's size or structure, our experience equips us to advise you on a wide range of legal and business matters.
We understand the importance of proper execution and air-tight contracts, and we work to ensure that these issues are addressed with your specific goals in mind. If you need to navigate complex corporate matters, we're here to help. Call our corporate law office in South Carolina today to discover the Cobb Hammett difference.
FOLLY BEACH — This island community elected a new face to city council on Feb. 17 — one that looks familiar.Folly Beach chose D.J. Rich to serve on city council, unofficial election night results show. Rich has previously served on council for a combined 14 years.Rich secured 58 percent of votes cast on Feb. 17. John McFarland trailed behind, earning 41.6 percent of votes cast, unofficial results show.Rich’s victory marked the end of a long-lasting election cycle for Folly Beach, where Charleston County...
FOLLY BEACH — This island community elected a new face to city council on Feb. 17 — one that looks familiar.
Folly Beach chose D.J. Rich to serve on city council, unofficial election night results show. Rich has previously served on council for a combined 14 years.
Rich secured 58 percent of votes cast on Feb. 17. John McFarland trailed behind, earning 41.6 percent of votes cast, unofficial results show.
Rich’s victory marked the end of a long-lasting election cycle for Folly Beach, where Charleston County’s Board of Voter Registrations and Elections has hosted three elections on the island since last November.
Chris Bizzell was elected as mayor in a runoff election in November which left a vacant spot on council, triggering a special election to fill the seat.
In the days leading up to the election, Rich encouraged Folly Beach voters to turn out to the polls on Tuesday. In a message shared to Facebook on Feb. 16, he wrote that he ran for city council once more to “help our new administration move Folly forward responsibly.”
“I’m not a one trick pony,” Rich wrote. “I have full experience after 14 years on council and 4 as mayor pro-tem helping navigate us through a full range of issues.”
Rich ran unsuccessfully for mayor of Folly Beach last fall. He earned the third-most votes on Nov. 4, trailing behind candidates Elton Culpepper and Bizzell, failing to make the runoff. Bizzell was sworn in as mayor on Nov. 21, 2025.
But this time, Rich found success.
McFarland, a long-time property owner on the island, moved to Folly Beach full-time in 2025. Shortly after, he filed to run for city council, but fell short of winning a seat. The founder of Save Folly’s Future could often be found stumping outside the community’s sole post office on East Indian Avenue.
Charleston may get most of the attention when it comes to South Carolina’s many cities, but the history, culture, and (of course) Southern charm that make it so special can also be found in smaller and less expensive places in the region. If you’ve ever watched “Forrest Gump” or read anything by the late author Pat Conroy, you may be familiar with Beaufort, a harbor town on Port Royal Island. While its narrow streets, oak trees, and historic district that pre-dates the Civil War are similar to those in Charleston, Bea...
Charleston may get most of the attention when it comes to South Carolina’s many cities, but the history, culture, and (of course) Southern charm that make it so special can also be found in smaller and less expensive places in the region. If you’ve ever watched “Forrest Gump” or read anything by the late author Pat Conroy, you may be familiar with Beaufort, a harbor town on Port Royal Island. While its narrow streets, oak trees, and historic district that pre-dates the Civil War are similar to those in Charleston, Beaufort is remarkable and magical in its own right. Plus, it doesn’t draw the same crowds that tend to flock to notable Holy City hangouts like King Street, Folly Beach, and the Battery.
Before you read any further, though, you need to know how to properly pronounce the name. Not to be confused with Beaufort, North Carolina (said like “bow-fert”), the coastal town has a pronunciation more akin to “bew-fert.” Mistaking the two will immediately identify you as a tourist—and it won’t sit too well with the locals. Once you have that squared away, you can start planning your trip to Beaufort, the second-oldest city in South Carolina.
In 1969, Beaufort became one of the few U.S. cities with an entire downtown designated as a historic district by the National Trust for Historic Preservation, so exploring the neighborhoods filled with Victorian, Greek Revival, Neoclassical, and Federal-style homes is at the top of most travelers’ lists. At Henry C. Chambers Waterfront Park, you’ll spot Woods Memorial Bridge, recognizable from the aforementioned Tom Hanks blockbuster. Stretching your legs is also encouraged along the Spanish Moss Trail, a 10.2-mile greenway that weaves by Beaufort’s marshes and through trees draped in Spanish moss. Given its waterfront location, Beaufort should also be experienced by boat; book a Dolphin & History Boat Cruise with Coastal Expeditions or an ecology tour with Beaufort Kayak Tours. Paddleboarding is another option, with rental equipment available through Higher Ground Outfitters.
Beaufort’s ties to the literary world are strong; visiting the Pat Conroy Literary Center (this was Conroy’s adopted hometown) or one of the three independent bookstores in town—NeverMore Books, McIntosh Book Shoppe, or Beaufort Books—is a must for book lovers. For those interested in local art, there's the Rhett Gallery, Thibault Gallery, or Atelier Off Bay.
Many of the best things to do in Beaufort are found outside downtown. About 17 miles east is Hunting Island State Park, with its pristine beaches, marshes, maritime forest, and saltwater lagoon. It's also home to the Hunting Island Lighthouse, which was destroyed during the Civil War and rebuilt in 1875. St. Helena Island (a 15-minute drive away) is home to the Penn Center—one of the United States’ first schools for formerly enslaved individuals—as well as the family-owned Dempsey Farms, where you can pick in-season fruits and vegetables. Local produce can also be acquired on Saturdays at the nearby Port Royal Farmers Market.
Enhance your visit to Beaufort with a stay in one of the town’s upscale inns. Slow Southern mornings paired with a home-cooked breakfast can be enjoyed on the expansive wooden porch at The Rhett House Inn. Guests can also book the more modern Rhett House Inn Cottages, which sit across the street from the main building. Once a Union Army hospital, Anchorage 1770 overlooks the Beaufort River and offers a fine dining experience at The Ribaut Social Club. The Beaufort Inn first opened its doors in 1897, and the property’s modern-day chapter features several fully renovated buildings within the town’s historic district.
As with most Southern cities and towns, food is a major part of the local culture. If you’re a traveler who plans their vacations around meals, you’ll want to start your day at Blackstone’s Cafe or Herban Market and Cafe. For a quick lunch while exploring Beaufort, stop by Lowcountry Produce Market & Cafe to get a fried chicken sandwich or po’boy. Chapman’s Grocer also has grab-and-go treats, wine, and craft beer. Old Bull Tavern is a lively gastropub open only for dinner, Saltus River Grill is great for indulging in seafood, and those craving Italian should dine at Griffin Market. On St. Helena Island, The Gullah Grub Restaurant is one of the area’s most famous eateries (it appeared on Anthony Bourdain: No Reservations); order the shrimp gumbo.
When considering the best time to visit South Carolina, there are a few things to keep in mind. Summers here are hot and humid—there’s no getting around that. To explore Beaufort in the most comfortable climate, your best bet is to go in either early spring or late fall. April and October are ideal—you'll find plenty to do (winter is far from bustling) while simultaneously avoiding the sweltering weather that's synonymous with the South.
Hilton Head Island Airport (HHH) and Savannah/Hilton Head International Airport (SAV) are both about an hour's drive away. You’ll need to rent a car to fully experience Beaufort and its surrounding area. Charleston International Airport (CHS) is also an option, although it’ll take about 90 minutes to drive to Beaufort.
South Carolina delivers some of the South’s best trips, from barrier island beaches and salt marshes to local markets in historic districts. Edisto Island, a quiet and lightly developed sea island, is worth the trip for the 1.7-mile Spanish Mount Trail, which leads to a 4,000-year-old shell midden. Beaufort, with its antebellum character and live oak-lined streets, stands out for Cypress Wetlands, where visitors can spot alligators and river otters. And Newberry is especially memorable for the Wells Japanese Garden, with its moon bridg...
South Carolina delivers some of the South’s best trips, from barrier island beaches and salt marshes to local markets in historic districts. Edisto Island, a quiet and lightly developed sea island, is worth the trip for the 1.7-mile Spanish Mount Trail, which leads to a 4,000-year-old shell midden. Beaufort, with its antebellum character and live oak-lined streets, stands out for Cypress Wetlands, where visitors can spot alligators and river otters. And Newberry is especially memorable for the Wells Japanese Garden, with its moon bridge and Torii gate, as well as the historic Newberry Opera House downtown. There is plenty of history and natural beauty waiting to be discovered across the state, and the eight towns below show just how rewarding a long weekend in South Carolina can be.
Edisto Island is quiet and largely uninhabited, making it the perfect destination for those wanting to disconnect and unwind. The island's highlight is Edisto Beach State Park, featuring a maritime forest with palmetto trees and rich salt marshes. One of the park's most popular trails, the Spanish Mount Trail, is a 1.7-mile path leading to a 4,000-year-old shell midden that has gradually eroded over time. For those who want to stay immersed in the island’s natural beauty, Edisto Beach State Park also offers rustic cabins tucked among the palmettos and live oaks. The cozy, no-frills cabins sit just steps from the shoreline, allowing visitors to wake up to ocean breezes, spend the day exploring the park’s trails and beaches, and end the evening listening to the sound of waves under a sky full of stars.
Just a short 25-minute drive from Charleston, Folly Beach is a lovely escape with a population of just over 2,000. Stroll along the historic Folly Pier, built in the 1930s, and take in the breathtaking ocean views. Folly Beach County Park is perfect for those looking to swim, sunbathe, or walk along the shore, with lifeguards present during the summer months.
For a taste of fresh, home-cooked seafood, visit Coconut Joe's, conveniently located just a block from the beach. The town also offers a variety of charming inns and hotels, including the Regatta Inn, which features a waterfront view, a sunset terrace, and complimentary golf cart shuttles for added convenience.
Bluffton offers a waterside escape of its own, centered around the scenic May River rather than the Atlantic. Here, visitors can enjoy numerous recreational activities along the river, including dolphin tours, fishing charters, kayaking, and paddleboarding. The town also highlights local artisans and vendors through markets like the Lowcountry Made Artisan Market, an open-air venue showcasing handmade goods, and the Bluffton Farmer’s Market, where you can find fresh produce, spices, barbecue, and honey. If you're searching for a true Southern-style place to stay, consider May River Manor, which boasts 5.5 acres of lush greenery, a pool, and an outdoor patio for a relaxing getaway.
The town of Beaufort sits on Port Royal Island, surrounded by marshy estuaries and shaded by streets lined with live oak trees. The area is home to over 100 bird species, and the nearby Cypress Wetlands, just a ten-minute drive away, are an excellent spot for exploring the wetland ecosystem. Here, you can see diverse wildlife, including minks, river otters, marsh rabbits, and alligators. Beaufort's downtown area is filled with charming local shops, with highlights such as Beaufort River Glass, Monkey’s Uncle toy shop, and the Oyster Cay Collection antiques store. For a picturesque and historic stay, Anchorage 1770 is a heritage boutique inn on the waterfront.
Heading over to the western side of South Carolina, Aiken is renowned for its rich equestrian heritage, while also embodying the best of Southern charm and hospitality. Visitors can tour and meet the horses at Aiken Equine Rescue, the southeastern US’s largest equine rescue center. Those interested in racing can visit the Aiken Thoroughbred Racing Hall of Fame and Museum, which has a large collection of photographs and trophies from some of the country’s best equestrian riders.
The nature around Aiken is priceless as well. The Aiken Arboretum Trail in town, for example, features one of the country’s most diverse tree collections within a municipal landscape. Regarding a unique lodging option in town, The Carriage House Inn, dating back to 1872, is located in Aiken’s historic downtown district and provides a delicious complimentary breakfast and chocolate chip cookies to its guests.
Visitors cannot go wrong with a weekend trip away in Newberry. Its downtown historic district is a particular highlight, with landmarks like the Newberry Opera House and the Newberry Museum offering important insights into the town’s history. The Wells Japanese Garden is also on the National Registry of Historic Places, featuring a temple, moon bridge, Torri gate, and tea room.
Wine lovers will find plenty to enjoy in Newberry, with Enoree River Vineyards & Winery offering the perfect spot to spend an afternoon, surrounded by scenic views of the vineyard. For a quaint stay, the historic, family-run Newberry Manor, located just a block away from the Wells Japanese Garden, is a great option.
Sullivan’s Island is a relaxed, two-and-a-half-mile-long island home to a little over 2,000 residents, making for a quiet escape. After a leisurely morning stroll along its 2.5-mile shoreline, visitors can enjoy lunch at one of the town's coastal cuisine spots, like Sullivan’s Fish Camp. The town also has an involved artist presence, with visitors able to appreciate local art at galleries such as Sandpiper Gallery and Adele’s Pottery.
One of the island’s iconic landmarks is Fort Moultrie, the site of a pivotal nine-hour battle with the British during the Revolutionary War in 1776. The Palms Oceanfront Hotel is one of the nearest and most recommended lodging options, including spectacular views of the ocean, a newly renovated pool deck, and stylish, modern rooms.
If you're interested in South Carolina's history and culture, Pendleton is a must. The town boasts more than 50 historic buildings from the 18th and 19th centuries, numerous art galleries featuring works from local artists, and a vibrant bluegrass music scene. Notable historic sites include Timms Mill, a gristmill originally built along the Six and Twenty Creek in 1784 and relocated in 1898, as well as St. Paul’s Episcopal Church, established in 1822 and still featuring a Jardine pipe organ that has been playing for over 170 years.
To dive into the bluegrass scene, head to Breazeale’s Grocery Bluegrass on the weekends, where you can enjoy jam sessions and occasionally catch performances by nationally recognized artists. For lodging, Liberty Hall Bed & Breakfast, a beautifully restored home built in 1849, offers a charming accommodation option.
Whether you are a native-born South Carolinian or hail from another state, each of these towns offers unique and diverse attractions that will appeal to every member of the family. With everything from fresh seafood to art galleries and bird tours, these towns offer a wide variety of experiences that defy simple categorization. So get out your calendar, mark your dates, and start planning your next adventure in one of these amazing towns.
FOLLY BEACH, S.C. (WCIV) — A South Carolina appeals court has upheld Folly Beach’s limit on short-term rental licenses, allowing the city to keep its cap of 800 vacation rental permits.City leaders say the cap was approved by voters in 2023 with the goal of maintaining a balance between tourism and full-time residents on the island.The decision comes after some property owners challenged the policy in court, arguing the cap prevented them from renting their homes short-term. However, the court sided with the city, r...
FOLLY BEACH, S.C. (WCIV) — A South Carolina appeals court has upheld Folly Beach’s limit on short-term rental licenses, allowing the city to keep its cap of 800 vacation rental permits.
City leaders say the cap was approved by voters in 2023 with the goal of maintaining a balance between tourism and full-time residents on the island.
The decision comes after some property owners challenged the policy in court, arguing the cap prevented them from renting their homes short-term. However, the court sided with the city, ruling the policy regulates business licenses rather than zoning. That distinction was central to the legal challenge.
Mayor Chris Bizzell said the ruling reinforces the city’s approach to managing growth while protecting the community.
“The tourism numbers are basically the same,” Bizzell said. “What I have seen is we have a lot of people moving in that are now long-term residents, as opposed to looking at the community as an investment, which is great to have new families moving onto the island.”
The cap was created amid concerns that a growing number of homes were being used as vacation rentals instead of primary residences. At one point, nearly half of the homes on the island were operating as short-term rentals.
City leaders say the goal was to place guardrails around that growth and preserve Folly Beach’s residential character while still allowing tourism.
Bizzell said from the city’s perspective, the policy has not hurt the overall economy.
“Our hospitality tax numbers and our accommodations taxes are at or above historic levels,” he said.
Still, some local business owners say they are concerned about how limiting vacation rentals could affect spending on the island.
Perry Freeman, president of Perry Hospitality, said visitors staying in short-term rentals often spend several days dining, shopping, and supporting local businesses.
“It’s not necessarily just a cap on the rentals — it’s a cap on tourists,” Freeman said, explaining that visitors staying on the island typically spend money every day during their trip.
Freeman said he believes there are fewer people staying on the island compared to previous years, something he says businesses are starting to feel.
“You see less people out there’s definitely been an impact on our business,” he said.
While the court decision keeps the cap in place for now, the legal fight may not be over.
The property owners who filed the lawsuit say they may ask the court for a rehearing and could ultimately try to take the case to the South Carolina Supreme Court.
Meanwhile, city leaders say they plan to continue reviewing the policy as part of long-term strategic planning to ensure it maintains the balance between tourism and residents that voters supported.
FOLLY BEACH — Two owners of several island properties lost their court appeal that sought to declare the local short-term rental cap illegal by arguing it was a change in zoning laws that deprived them of renting a new property.Folly East Indian Co., which has five short-term rental licenses for properties along Folly Beach Road, filed suit and sought an injunction in January 2023 to stop enforcement of the cap that limits island short-term rental licenses to 800.The landlord and real estate development company, owned by ...
FOLLY BEACH — Two owners of several island properties lost their court appeal that sought to declare the local short-term rental cap illegal by arguing it was a change in zoning laws that deprived them of renting a new property.
Folly East Indian Co., which has five short-term rental licenses for properties along Folly Beach Road, filed suit and sought an injunction in January 2023 to stop enforcement of the cap that limits island short-term rental licenses to 800.
The landlord and real estate development company, owned by Folly Beach residents Richard D. Brendel and Michael J. Riffert, argued that the new limit changed the zoning of properties by not allowing owners to rent them.
The city has long maintained the referendum, which was written by a citizen and voted into law by 53 percent of island residents in 2023, was a business license change, not a zoning one. The S.C. Supreme Court previously ruled that zoning provisions cannot be enacted by the referendum process.
The lawsuit stemmed from the plaintiffs’ inability to rent one property in particular. Prior to the moratorium the city permitted them to build a house they intended to operate as an income-producing short-term rental. Because of pandemic-related delays, construction took longer than expected and the owners missed their window to get a short-term license before the cap was enacted.
The plaintiffs argued the cap took away their vested rights, which by state law protects a property owner from changes in zoning ordinances for two years and would have grandfathered in their ability to rent the property.
A Charleston County court disagreed. In an April 2024 ruling, Circuit Judge Paul Burch affirmed the referendum is not a zoning ordinance. As such, it does not infringe on property rights because it is a modification of business licenses.
A business license is not a vested right, the judge said.
The following month, Folly East Indian Co. filed an appeal with the S.C. Court of Appeals, which on Feb. 18 sided with the lower court.
The court’s unpublished opinion, which means it has no precedential value, said the ordinance “at issue only amended City’s business regulations to impose a cap on the number of issued short-term rental business licenses” and that it “did not amend City’s zoning ordinance, did not rezone any properties … and did not determine where any specific activities may occur.”
Island wide, rentals are still legal in every district and every residential unit is allowed to become a rental. The referendum solely regulates how many can get a business license to operate as such.
The plaintiffs argued the cap deprives them of the “economically viable use” of their property, “infringes upon its vested rights, and will interfere with Plaintiff’s reasonable, investment-backed expectations.”
Since the referendum was enacted limiting the coveted permits, homeowners who bought properties to rent short-term for income or as a way to pay for a beach home are now unable to do that. There’s no revenue to supplement mortgages, some involving multi-million-dollar purchases with high interest rates. Many have struggled to sell off their homes since.
The 800-unit cap applies exclusively to second homes, not primary residences. At the time of the vote, there were 1,125 rental properties on Folly Beach, which accounted for 43 percent of its housing stock. About 200 entries remain on the waiting list and, as of October, no one has made it off the waitlist.
Bijan Ghom with Saxton & Stump, who represented the plaintiffs, told The Post and Courier the opinion didn’t offer much analysis or directly address “several legal arguments” made on behalf of the plaintiffs.
“Since the Court did not select this matter for oral argument, it is even more difficult to read between the tea leaves, so to speak,” he said. “In any event, my client intends to file a petition for rehearing this week. If that is denied, we plan to petition the Supreme Court for review.”
Ghom noted there is another case at the trial level that also challenges the short-term cap from another legal argument.
“So, all in all, we are still hopeful we will prevail,” he said.
The city had no additional comment.
Mayor Chris Bizzell previously told The Post and Courier fine-tuning the referendum is part of the city’s 2026 strategic plan.
“I think the biggest thing that's happening is a couple of people have asked us to maybe look at the different proposals that were in the initial short-term rental language that was proposed by (previous) Mayor (Tim) Goodwin, and then go back through that, discuss why or why not we adopted some of those provisions,” Bizzell said.
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