South Carolina Secretary of State (entity formation) / South Carolina Department of Revenue (tax registration) / Local municipality for local licenses
Step by Step
How to do it
Determine your business structure: sole proprietor, LLC, corporation, partnership
Register your business entity with the SC Secretary of State (for LLCs, corporations, and LPs) - file online at sos.sc.gov (SC SOS Business Entities portal); SC offers streamlined online filing
Obtain an EIN from the IRS at irs.gov
Register with the South Carolina Department of Revenue (SCDOR) for applicable state taxes at dor.sc.gov:
- Other applicable SC taxes (corporate income tax, etc.)
BUSINESS LICENSE REQUIRED BY CITIES AND COUNTIES - IMPORTANT IN SC: South Carolina municipalities and some counties require a LOCAL BUSINESS LICENSE for businesses operating within their limits; the annual fee is typically based on gross revenues; almost all SC cities and many counties that have adopted the SC Business License Act require this; examples: City of Columbia, City of Charleston, City of Greenville, Myrtle Beach, Spartanburg, Rock Hill - all require local business licenses; contact every city/county where you operate
Check for industry-specific state licenses: contractors (SC Contractor's Licensing Board - llr.sc.gov/contractors); health professionals, real estate, cosmetologists through the SC Department of Labor, Licensing and Regulation (LLR) - llr.sc.gov; alcohol and beverage licenses through the SC Department of Revenue
Renew entity annual report with SC SOS; renew local business licenses annually; renew professional licenses per LLR board schedule
Details
What you need to know
Required Docs
Business name and type of activity
SC business address and registered agent
Entity formation documents
EIN or SSN
Industry-specific certifications
Fee
LLC formation: $110 (online); corporation: $135 (online); ANNUAL REPORT: $25 (LLC and corporation - low); SC Retail License: $50 statewide; local business license: revenue-based formula varying by city/county; professional license: per LLR board
RENEWAL: Annual report due by the business's anniversary date each year; local business license: typically annual; professional licenses: per LLR board
ONLINE OPTION: Yes - sos.sc.gov (SOS Business Entities); dor.sc.gov (SCDOR for tax registration); SC Business One-Stop portal available
WHERE TO GO: SC Secretary of State (entity formation); SCDOR (tax/retail license); City/County (local business license); LLR (professional licenses)
Online Option
Yes - sos.sc.gov (SOS Business Entities); dor.sc.gov (SCDOR for tax registration); SC Business One-Stop portal available
Where to Go
SC Secretary of State (entity formation); SCDOR (tax/retail license); City/County (local business license); LLR (professional licenses)
County-specific variations apply
Local business licensing in SC is significant - almost all SC cities require an annual business license with revenue-based fees (often 0.1-0.5% of gross revenues with minimum fees). The SC Business License Act standardized the fee structure across many municipalities in recent years (standardized rate tables by business classification). Charleston County, Richland County (Unincorporated), and Horry County (Unincorporated/Myrtle Beach) have county-level licensing for businesses in unincorporated areas. Always check both the city AND county requirements.
South Carolina Notes
Important state-specific details
SC LOCAL BUSINESS LICENSE: Almost universally required for SC cities; revenue-based fee; SC Business License Act (2021) standardized the rate tables for most municipalities; verify with each city/county where you operate.
SC RETAIL LICENSE: $50 one-time fee to collect SC sales tax; required for businesses selling taxable goods/services.
SC SALES TAX: 6% state rate; some counties add 0.5-2% local option sales taxes; Hospitality Tax additional in some municipalities.
SC LLC annual report: $25 - low nationally.
SC CONTRACTOR'S LICENSING: LLR administers contractor licensing; required for most major construction work; llr.sc.gov/contractors.