How to Start a Small Business in South Carolina

South Carolina is one of the few states with a genuine single portal for business registration: SC Business One Stop handles formation, tax registration, and employer accounts in one account. The two South Carolina specifics to plan for are a municipal business license in most cities and a contractor licensing threshold among the lowest in the country. Here is the sequence.

Step 1: Register through SC Business One Stop

Start at onestop.sc.gov. Articles of Organization for an LLC cost $110, filed with the Secretary of State. South Carolina does not require annual reports for LLCs, but a minimum $25 franchise tax generally applies each year.

Sole proprietors can register a trade name and get set up through the same portal.

Step 2: Sales tax and employer accounts

Register for sales and use tax through the South Carolina Department of Revenue (mySCDORforBusiness), integrated into One Stop. The state rate is 6%, with county and local add-ons bringing many combined rates to 7% to 9% — among the higher combined rates in the Southeast. Many South Carolina jurisdictions also levy local hospitality or accommodations taxes on prepared food and lodging, so restaurants and short-term-rental businesses should check both.

Most pure services are not subject to sales tax, but goods and several service categories are. Confirm your classification before your first sale.

Step 3: Licenses — state, county, and city

• Contractors: South Carolina requires a contractor license for commercial work of $5,000 or more — dramatically lower than most states — and residential builders are licensed through the Residential Builders Commission. If you plan real contracting work, budget for licensing early.
• Trades and professions: electrical, plumbing, cosmetology, and real estate are each licensed through their own boards.
• Municipal business license: most South Carolina cities (Charleston, Columbia, Greenville, Myrtle Beach, and others) require a local business license based on revenue, renewed annually. Fees scale with gross receipts, so it grows with you — get the current schedule from your city.

What launching in South Carolina typically costs

• LLC filing: $110
• Minimum franchise tax: $25 per year
• Sales tax registration: free
• Municipal business license: varies by city, revenue-based
• General liability insurance: commonly $50 to $150 per month for a solo service business

The 30-day version

Week 1: One Stop registration and your EIN. Week 2: sales tax registration, your city business license application, and a bank account. Week 3: pricing and invoice and estimate templates. Week 4: outreach to your first ten prospects.

Our 100-step course walks this sequence with the tools you will use from job one — pricing calculator, estimates, invoicing, and lead tracking. This guide is general information, not legal or tax advice; confirm current requirements on onestop.sc.gov and the SC Department of Revenue.