Business License in South Carolina: Rules & Cost (2026)

Q: Does South Carolina require a statewide business license?

No. South Carolina has no single statewide general business license. Instead, most counties and municipalities levy a local business license tax on gross income under Section 6-1-400, and retailers must obtain a Retail License from the SCDOR.

Q: When is a South Carolina business license due?

Under Section 6-1-400 the standardized business license year runs May 1 to April 30. A business license must be renewed before May 1 of the year it expires, or the taxing jurisdiction may impose penalties.

Q: How is the South Carolina business license tax calculated?

It is based on the business's gross income for the preceding year and a rate class assigned by North American Industry Classification System (NAICS) code, so the amount varies by jurisdiction and by how much the business earns.

Q: What is a South Carolina Retail License?

A Retail License authorizes retail sales and is issued by the South Carolina Department of Revenue. Under Section 12-36-510 it costs $50 per permanent location; artists and craftsmen selling at shows pay a $20 license instead.

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

South Carolina has no single statewide general business license. Instead, most counties and municipalities levy a local business license tax on gross income under Section 6-1-400, with a standardized license year running May 1 to April 30. Retailers separately need a $50 Retail License from the South Carolina Department of Revenue, and some professions require state licenses.

Quick Answer

Statewide license?: No general statewide business license
Local license: County/city business license tax on gross income (§6-1-400)
License year: May 1 – April 30; renew before May 1
How it is set: Gross income × rate class by NAICS code
Retail License: $50 per location from the SCDOR (§12-36-510)
Sales tax: 6% statewide rate on taxable sales

No Statewide General Business License

South Carolina does not issue a single statewide business license that every company must hold. Business licensing in South Carolina is primarily local: a county or municipality that chooses to levy a business license tax requires businesses operating within its borders to obtain a license and pay that tax. Layered on top are a state Retail License for sellers and profession-specific licenses for regulated fields. Because obligations depend on where and what you do, you should check each city and county where you have a location. For the national framing see the business license overview and, for setup, how to form an LLC in South Carolina.

The Local Business License Tax (Section 6-1-400)

The local business license tax is South Carolina's most common business-license obligation. Section 6-1-400 provides that, unless state law says otherwise, a county or municipality that levies a business license tax must comply with the standardized rules in the Business License Tax Standardization Act. A "business license" is a license issued by a county or municipality "for the privilege of doing business" there, and the tax is computed on the business's gross income. A charitable organization is generally exempt on its charitable-purpose income, though it can be taxed on unrelated business income.

Standardized License Year: May 1 to April 30

The standardized license year is a defining feature of South Carolina's business license system. Section 6-1-400 requires that a business license be issued "for a twelve-month period beginning May first and ending April thirtieth," and that it "must be renewed before May first of the year in which it expires." If the tax is not paid before May 1, the taxing jurisdiction may impose penalties. A license tied to a construction project may instead run for the length of that project. Mark the May 1 renewal date so you do not incur avoidable penalties.

How the Business License Tax Is Calculated

The business license tax is not a flat fee; it scales with revenue. Under Section 6-1-400 the tax is computed on the business's gross income for the preceding calendar or fiscal year, and businesses are placed in a standard class schedule according to their North American Industry Classification System (NAICS) code. A new business is taxed on its estimated gross income for the balance of the license year. Because rate classes and per-jurisdiction rates differ, the same revenue can produce different tax in different cities. A taxpayer who overpays may request a refund before June 1.

South Carolina Business License and Related Fees (2026)

The table lists the state-level license and tax items most South Carolina businesses encounter, each verified against the South Carolina Code or the Department of Revenue. The local business license tax itself is set by each jurisdiction, so its amount is not a fixed statewide figure.

Item	Basis / form	Cost (2026)	Authority
Local business license tax	Gross income × NAICS rate class	Set by county/city	County / municipality (§6-1-400)
Retail License (per location)	Application via SCDOR-111	$50	Dept. of Revenue (§12-36-510)
Artist/craftsman retail license	Retail license	$20	Dept. of Revenue (§12-36-510)
Transient/temporary retail license	Retail license	$50	Dept. of Revenue (§12-36-510)
State sales & use tax	Collected on taxable sales	6% rate	Dept. of Revenue
Professional / occupational license	Varies by profession	Set by licensing board	SC LLR / relevant board

The State Retail License

The Retail License is a state requirement distinct from any local business license. Under Section 12-36-510, "every retailer shall obtain a retail license for each permanent branch, establishment, or agency and pay a license tax of fifty dollars for each retail license at the time of application." Artists and craftsmen selling their own work at shows pay a $20 license, and a transient or temporary retailer pays $50. You apply through the Department of Revenue using Form SCDOR-111 and then collect the 6% state sales tax. See South Carolina LLC taxes and filing for how sales tax fits the broader tax picture.

Exemptions and Special Cases

Some businesses are outside or partly outside these requirements. Under Section 6-1-400, wholesalers are exempt from the local business license tax unless they maintain a warehouse or distribution establishment within the taxing jurisdiction, and a charitable organization is generally exempt on its charitable-purpose income. Under Section 12-36-510, a Retail License is not required of certain occasional sellers, such as those holding a yard sale no more than once a quarter. Regulated professions - for example, contractors, cosmetologists, and many licensed trades - need a state license from the appropriate board in addition to any local license.

How to Get the Right Licenses

Register the business. Form your LLC and get a federal EIN, then register tax accounts with the SCDOR using Form SCDOR-111.
Get a Retail License if you sell. Apply for the $50 Retail License for each permanent location before making sales.
Get a local business license. Contact each city and county where you operate to obtain and renew the local business license, due before May 1 each year.
Check professional licensing. Confirm whether your profession requires a state license from the South Carolina Department of Labor, Licensing and Regulation or another board.

Penalties for Operating Without a License

Operating without the required licenses carries cost in South Carolina. If the local business license tax is not paid before May 1, Section 6-1-400 allows the taxing jurisdiction to impose penalties. A retailer that makes sales without the required Retail License is operating unlawfully and may owe the uncollected 6% sales tax plus penalties assessed by the Department of Revenue. Practicing a regulated profession without the required state license can expose you to board discipline. Keeping local licenses, the Retail License, and any professional license current is the reliable way to stay compliant.

Frequently Asked Questions

Does South Carolina require a statewide business license?

No. There is no single statewide general business license. Most counties and municipalities levy a local business license tax on gross income under Section 6-1-400, and retailers must obtain a Retail License from the SCDOR.

When is a South Carolina business license due?

Under Section 6-1-400 the standardized license year runs May 1 to April 30. A business license must be renewed before May 1 of the year it expires, or the taxing jurisdiction may impose penalties.

How is the South Carolina business license tax calculated?

On the business's gross income for the preceding year and a rate class assigned by NAICS code, so the amount varies by jurisdiction and by how much the business earns.

What is a South Carolina Retail License?

A state license authorizing retail sales, issued by the SCDOR. Under Section 12-36-510 it costs $50 per permanent location; artists and craftsmen selling at shows pay a $20 license instead.

Do wholesalers need a South Carolina business license?

Under Section 6-1-400, wholesalers are generally exempt from the local business license tax unless they maintain a warehouse or distribution establishment in the taxing jurisdiction.

Sources

South Carolina Code - Title 6, Chapter 1, §6-1-400 (Business license tax standardization) (local license; May 1–April 30 year; gross income basis; NAICS class; wholesaler and charitable exemptions).
South Carolina Code - Title 12, Chapter 36, §12-36-510 (Retail license) ($50 per permanent location; $20 artist/craftsman; $50 transient/temporary).
South Carolina Department of Revenue - Sales & Use Tax (6% state rate; Retail License requirement).
South Carolina Department of Revenue - Business Tax Registration (Form SCDOR-111).
South Carolina Department of Revenue - Corporate FAQs (tax registration context for LLCs).
South Carolina Secretary of State - Business Entities (entity registration before licensing).
South Carolina Secretary of State - FAQs About Business Entities (entity status).
South Carolina Code - Title 33, Chapter 44, Uniform LLC Act (LLC formation underlying licensing).
IRS - Limited Liability Company (LLC) (federal classification background).
IRS - Get an Employer Identification Number (free EIN before licensing).
IRS - Business Taxes (federal tax registration context).
Legal Information Institute - 26 U.S.C. § 501 (charitable exemption referenced by §6-1-400).

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current requirements with your county or municipality and the South Carolina Department of Revenue before acting.