Starting a new business in South Carolina? You are in the right place because the success of your business venture is our mission.

Every business varies in its needs and requirements depending on the industry or field. In general, the following information and resources can help you get started turning your business ideas into business realities.

Business research can vary depending on the industry or field. In general, your research should cover the following:

  • Your product or service
  • Existing and potential demand
  • Target customers
  • Suppliers
  • Marketing and advertising
  • Industry and local labor markets
  • Funding and financing
  • Business structures
  • Location

Find resources and more information about business research.

A formal, written business plan is the roadmap to realizing your business dreams. Like the research, business plans can vary depending on the industry or field. In general, your business plan should be based on your in-depth research and include detailed descriptions/definitions of the following:

  • Your product or service
  • Target customers
  • Existing and potential demand
  • Suppliers
  • Marketing and advertising plans
  • Labor need
  • Funding/financing needs
  • Financial projections
  • Business structure type
  • Business name
  • Location

Find resources and more information about business planning.

The State of South Carolina requires a business to register its name and type with the Secretary of State's Office, unless your business is a Sole Proprietorship or General Partnership. If your business is a Sole Proprietorship or General Partnership, you are not required to register with the Secretary of State. 

NOTE: South Carolina does not require a statewide business license. Instead, business licenses are issued by your local municipality.

According to the IRS, a Federal Employer Identification Number (FEIN), also known as a Federal Tax Identification Number, is used to identify a business entity. In general, most businesses need a FEIN.

As a free service offered by the IRS, you can apply for a FEIN online through the IRS website. According to the IRS, once you have submitted the online application and all validations are completed, you will immediately get your FEIN and can then download, save, and print your FEIN confirmation notice.

You need a FEIN if you:

  • Started a new business
  • Hired or will hire employees, including household employees
  • Opened a bank account that requires an EIN for banking purposes
  • Changed the legal character or ownership of your organization (for example, you incorporate a sole proprietorship or form a partnership)
  • Purchased a going business
  • Created a trust
  • Created a pension plan as a plan administrator
  • Are a foreign person and need an EIN to comply with IRS withholding regulations
  • Are a withholding agent for taxes on non-wage income paid to an alien (such as an individual, a corporation, or a partnership)
  • Are a state or local agency
  • Are a federal government unit or agency
  • Formed a corporation
  • Formed a partnership
  • Administer an estate formed as a result of a person's death, or
  • Represent an estate that operates a business after the owner's death

Learn more about your FEIN.

South Carolina does not have a statewide business license. Each municipality (city, county, town) administers its own business licenses/permits/registrations. Your business will need a local business license in most of the municipalities where your business is physically located and conducted.

Learn about business license requirements for each municipality.

Businesses have many employer and tax requirements when hiring and employing workers. Every business is different, and its responsibilities vary depending on multiple factors. 

Employer Taxes 

According to the IRS, the form of business you operate determines what taxes you must pay and how you pay them. The five general types of business taxes include:

  • Income Tax
  • Estimated Taxes
  • Self-Employment Tax
  • Employment Taxes
  • Excise Tax

South Carolina Employer Requirements

South Carolina state labor laws are based on federal labor laws and generally include:

  • E-Verify – U.S. Department of Homeland Security (USDHS)
  • Withholding – South Carolina Department of Revenue (SCDOR)
  • Unemployment Insurance – South Carolina Department of Employment and Workforce (SCDEW)
  • SC New Hire – South Carolina Department of Social Services (SCDSS)
  • Employment Posters – South Carolina Department of Labor, License and Regulation (SCLLR)
  • Workers’ Compensation – South Carolina Workers’ Compensation Commission (SCWCC)

Learn more about hiring employees.

In South Carolina, sales tax is imposed on the sale of goods and certain services. Use tax is imposed on goods and certain services purchased out of state and brought into South Carolina or on which no sales tax has been paid.

The statewide sales and use tax rate is 6 percent. Counties may impose an additional local sales and use tax if voters in that county approve the tax. Generally, all retail sales of tangible personal property are subject to the state’s sales or use tax. The standard fee for a Retail License is $50.00.​

Learn more about South Carolina Sales Tax.

Businesses are required to file a Business Personal Property Return with the county or the South Carolina Department of Revenue (SCDOR) annually for each business location.

Business Personal Property Tax is a business tax on the furniture, fixtures, and equipment owned by the business. Examples include computers, copiers, chairs, refrigeration equipment, and shelving. This is a tax that is to be reported as an acquisition cost with a deduction allowed for depreciation but should never fall below 10 percent.

To submit the tax, a Business Personal Property Tax account must be established. In general, a business that requires a Retail License will automatically receive a Business Personal Property Tax file number from the SCDOR. A service business normally registers with the county.

Learn more about Business Personal Property Tax.

Most business funding is obtained through loans, banks, venture capital/angel investors, or personal savings. There are also economic development grants for small businesses offered by nonprofits and government programs. Typically, requirements must be met to apply for these grants.

Learn more about funding, and find organizations that offer information about grants, loans, venture capital, and other sources of equity for businesses.

Business regulations safeguard your business, customers, employees, and industry. These regulations also make sure that the products, services, and practices of business benefit the public. In general, common regulations that South Carolina businesses must consider include the following:

  • Local/regional ordinances
  • Insurance and bonding
  • Consumer affairs
  • Health and environmental control
  • Labor and licensing
  • Taxes and revenue
  • Trademarks and patents

Find more information and resources about the business regulations that may affect your business.