Most businesses starting in South Carolina selling a product or offering certain services need to register for a Retail License. This is commonly referred to as a seller’s permit, sales tax permit, sales tax license, sales tax number, or sales tax registration.
The Retail License is obtained through the South Carolina Department of Revenue as part of the South Carolina Tax Registration Application. This application also registers for the Artist and craftsman’s License, Use Tax, and Withholding Tax.
Check out the rest of this guide to learn whether you need a Retail License, what products and services are taxable, how to register for a permit, and reporting requirements.
Related: South Carolina Startup Checklist
Who needs a Retail License in South Carolina?
A business must register for a Retail License in South Carolina when:
- A business has an economic nexus or sales tax nexus. Economic nexus means having a physical presence in the state, such as having a physical location like a retail store or office or using a warehouse or fulfillment center to store inventory.
- Selling products and taxable services in the state of South Carolina (including occasionally selling items at craft shows, fairs, seminars, shows, etc.). People selling at flea markets do not need a retail license unless they are in the business of selling at these events more than once a calendar quarter.
- Hiring employees who work in South Carolina (including sales representatives or agents) are working in South Carolina.
- An online business in South Carolina sells taxable products to South Carolina residents.
- A remote seller making total annual sales of taxable products and services of over $100,000 to South Carolina residents.
What products and services are taxable in South Carolina?
Physical products
There are a few exceptions, but almost all physical products are taxable when sold at retail in South Carolina. Common examples include:
- General merchandise like furniture, appliances, and clothing
- Titled or registered items like vehicles
Prescriptions, medical devices, and unprepared foods are tax-exempt. See the full list of sales tax exemptions in South Carolina.
Labor, in most cases, isn’t taxable in South Carolina. For instance, let’s say you broke your cell phone’s screen and took it to a cell phone repair shop to have it fixed. The sales tax would be added to the selling price of the new screen and any additional parts to fix the phone. The labor to replace the screen isn’t taxable. However, a furniture business will indirectly have a sales tax on labor. In this instance, let’s say this business is building a dining room table for a customer. Through labor, the pieces of wood are shaped, sanded, and painted to build this furniture. While the labor isn’t directly taxable, sales tax is charged to the final selling price of the table.
Digital Products
Digital products are tax-exempt in South Carolina.
Services
Even though the license is called a Retail License, it applies to sales tax law. Most services aren’t taxable in South Carolina, however, there are a few exceptions, some of which include:
- Short-term lodging
- Dry cleaning and laundry services
- Shoe repair services
- Jewelry repair services
See the full list of sales taxes on services.
How to register for a Retail License in South Carolina
A Retail License can be obtained by registering for the South Carolina Tax Registration Application through MyDorway or mailing in Form SCDOR-111.
Information needed to register includes:
- Legal Business Name
- Federal Employer Identification Number (FEIN) from the IRS or the owner’s Social Security Number if a sole proprietorship with no employees
- Mailing Address
- Type of business entity: sole proprietorship, partnership, corporation, Limited Liability Company (LLC)
- Phone number, email, and physical business address
- Seasonality (if applicable)
- Assumed Name (Doing Business As)
- Anticipated date of first retail sales
- Type of business (retail sales, manufacturing, service, etc.)
- Names and addresses of owners/officers/members
Sales tax reporting
How is sales tax collected?
When a business sells a taxable product or service, it charges the appropriate sales tax rate to the customer. The business collects this tax, which it then sends to the South Carolina Department of Revenue.
How much is sales tax in South Carolina?
If the purchase is made at a store or in a mobile location, the sales tax rate varies depending on where the sale occurred in South Carolina. In addition to the statewide sales tax, cities and municipalities may add additional sales taxes. When shipping in-state, the sales tax is based on the purchaser’s address.
To find sales tax rates, see the sales tax rates by zip code from the South Carolina Department of Revenue.
When are South Carolina sales tax returns due?
The Department of Revenue will determine a filing frequency based on the expected sales volume, which will be monthly, quarterly, or annually. Generally, a business collecting over $100 in monthly sales taxes will file monthly.
Filings are due on the 20th day of the month following the reporting period unless the 20th falls on a weekend or federal holiday, which would move to the next business day.
A filing indicating no sales is still required even if the business had no sales during the reporting period.
South Carolina Retail License FAQs
How much does a South Carolina Retail License cost?
A $50 registration fee is charged for each location to get a retail license in South Carolina.
How long does it take to get a South Carolina Retail License?
When registering online, expect to receive a retail license in 2-3 business days or 1-2 weeks when applying by mail.
Do you have to renew your South Carolina Retail License?
The Retail License is a one-time registration, provided the business’s ownership and location don’t change.
Is a business license the same thing as a sales tax license?
No – A business license and a sales tax permit are different. Here’s how they differ:
A business license gives you the right to operate your business in a specific area, while a sales tax permit allows you to collect sales tax from your customers on behalf of the state.
In many cases, a business will need both.
Related: What business licenses are needed in South Carolina
How do I get a wholesale license in South Carolina?
A business can purchase items to resell without paying state sales tax. The tax liability is passed from the wholesaler or distributor to the retailer, who will then charge sales tax to the end-user of the item.
Wholesalers and distributors will require a sales tax number. In many cases, they require the reseller to fill out a South Carolina Resale Certificate (also referred to as a sales tax exemption certificate) to document that the items being purchased are for resale.
If you have questions about the Retail License, the South Carolina Department of Revenue has a Sales and Use Tax FAQ page.
Regional service centers are also available to talk in person
Charleston
1 Southpark Circle, Suite 100
Charleston, S.C. 29407
Phone: 843-852-3600
Columbia (main center)
300A Outlet Pointe Boulevard
Columbia, S.C. 29214
Phone: 803-898-5000
Florence
1452 West Evans Street
Florence, S.C. 29502
Phone: 843-661-4850
Greenville
545 North Pleasantburg Drive, Suite 300
Greenville, SC 29607
Phone: 864-241-1200
Myrtle Beach
1330 Howard Parkway
Myrtle Beach, S.C. 29588
Phone: 843-839-2960
Rock Hill
454 South Anderson Road
Business and Technology Center, Suite 202
Rock Hill, S.C. 29731
Phone: 803-324-7641
