Starting a business in South Carolina requires thoughtful planning, creativity and hard work. If you’re looking to start a business in South Carolina, there are lots of important decisions to make. One of those is determining the business license requirements South Carolina has in place for your business.
Knowing what it takes to secure a business license in South Carolina, the South Carolina business license cost considerations and what licenses you need are also crucial to getting your business up and running.
This article explains what business requirements South Carolina has, the types of licenses required, costs and how to determine what licenses you need to operate.
Do you need a business license in South Carolina?
Some states require all businesses operating in the state to procure a state business license. Fortunately, you do not need a general business license South Carolina in the Palmetto state.
However, there are other licenses that you may be required to procure, depending on the type of business you operate and where you do business. That’s because many local cities and towns have their own guidelines and requirements when it comes to licensing businesses.
While a general business license is not required, businesses that sell tangible goods and services within the state must procure a retail sales license from the South Carolina Department of Revenue. Also known as a seller’s permit, this license allows you to collect sales tax from your customers.
How much does a business license cost in South Carolina?
While there is no general business license, local counties and municipalities may have required licenses, fees for which will vary. These license costs can vary greatly, with annual costs generally running between $50 to $500. In addition, some licenses will need to be renewed, some annually, incurring additional fees.
Types of business licenses in South Carolina and their cost
Your business license cost will vary. Many cities in South Carolina require businesses to have a business license and pay the municipality a fraction of their revenue.
The city of Florence, for example, classifies your business based on a classification system that determines your company’s primary business purpose, such as retail or contractor. Businesses pay a fraction of their income to the city based on pre-determined rates.
The state of South Carolina has a helpful online licensing portal, which provides information and links to details about local business licenses, retail licenses, alcohol licenses and professional licenses.
The local business license section includes FAQs , a renewal center and a clickable map to find contacts for local requirements.
Other license types include:
- County business license. These are licenses that a county imposes for operating within the region
- State-level permits (e.g., professional licenses). Businesses within various professions within South Carolina must obtain permits from the state to operate. Contractors, professional tradespeople and professional services providers are commonly required to obtain a state license to operate
- Federal licenses, if applicable. Some companies are required to obtain federal licenses in order to operate, regardless of where they are located
Here is a chart with some examples of the various costs associated with South Carolina business licenses:
- South Carolina state retail sales license – $50
- On-premises beer and wine permit – $600 plus $300 filing fee
- City of Florence business license – $1.69-$2.77 per $1,000 in income
Examples of different industries and the different licenses they require in South Carolina
Here’s a closer look at two types of businesses that require licensing by the state of South Carolina.
Nursing homes
Nursing home operators can expect to pay a series of licensing fees, including for the facility, the administrators, staff and food services.
Massage therapists
Massage therapists must pay a $150 fee and certify their age, educational background and passage of a board-approved exam.
Renewing your business license in South Carolina
Renewal requirements vary based on the license type and the period the license is valid, set either by a state agency or a municipality. In most cases, you will need to renew your license, and pay an additional fee, every 1-2 years. A failure to renew may involve financial penalties or being deemed ineligible to carry out your business in the state.
Conclusion
Knowing what licenses your South Carolina business requires is essential. With a keen understanding of state, count and local license requirements, your business can be up and running quickly.
If you’re just getting started and haven’t registered your business yet, now is a great time to learn how to start an LLC in South Carolina. Once your LLC is officially formed, you can easily apply for the licenses and permits needed to operate legally in the Palmetto State.
FAQ
There is no required general business license to sell online. However, whether yours is an e-commerce or home-based business, you will likely need a state retail sales license and a local business license.
You can start with the online licensing portal to find out what licenses you need and how to apply.
The time required to submit, file and receive a business license varies widely, from several weeks to months. The time depends on the state agency or local government issuing the permit, the time of year, and the volume of activity facing the organization.
You do not need a general business license to operate as an LLC in South Carolina. You may need state and local licenses based on the type of business you have and where it is located.
No. An LLC (limited liability company) is a business type, which determines how you operate your business. It is one of several business types available; others include a sole practitioner, partnership or corporation.
By contrast, a business license is a credential used to allow you to operate your company.
Failing to obtain or renew your business license can be problematic. You may face financial penalties, civil or criminal penalties, and be ordered to cease running your business until your licenses are up to date.
The state has a helpful website that contains extensive information about the steps required to obtain local business licenses and an interactive map to find contacts for your area of operation.