Starting a service business in South Carolina comes down to four things: picking a structure, registering with the state, getting licensed for your trade, and setting up a way to bill customers. Filing an LLC in SC costs $110, ongoing reporting is $0 (no annual report for llcs), sales tax is 6% + local, and personal income tax runs 0%–6.4%. Below is the full sequence, the fees you should budget for, the licenses most trades need, and the deadlines that catch new South Carolina owners off guard.
| Item | SC cost |
|---|---|
| LLC / entity filing (one-time) | $110 |
| Annual / periodic report | $0 (no annual report for LLCs) |
| Federal EIN (IRS) | Free |
| Sales tax registration | Typically free |
| Trade / professional license | Varies by trade |
| Local business license | Set by city / county |
Fees change — confirm current amounts with the SC Secretary of State and the South Carolina Department of Revenue.
Choose your structure and file with the SC Secretary of State ($110). Get your free EIN from the IRS the same day.
Register for South Carolina sales tax with the South Carolina Department of Revenue, then open a business bank account under the registered name.
Apply for your trade license and local business license. This is usually the longest step: Retail license; Professional license.
Get general liability insurance (and workers' comp before your first hire), then set up estimates and invoicing so you can bill the day you're cleared to work.
LLC Filing Fee
$110
Annual Report
$0 (no annual report for LLCs)
Sales Tax
6% + local
Income Tax
0%–6.4%
Choose business structure
File with SC Secretary of State
Get EIN
Register for state taxes
Get local business license
Open business bank account
No annual report for LLCs
Most municipalities require a separate business license
No — LLCs are exempt from annual report filings.
Online LLC filings with the SC Secretary of State are typically processed in a few business days, and an EIN from the IRS is issued immediately online. Trade licensing and local permits usually take longest — plan on two to six weeks before you're fully cleared to work, depending on your trade.
No — you can operate as a sole proprietor in South Carolina and still invoice customers legally. An LLC ($110 to file, $0 (no annual report for llcs)) separates your personal assets from business liability, which matters most once you're on customer property, hiring help, or signing contracts.
South Carolina sales tax is 6% + local. Materials and goods are commonly taxable, while labor treatment depends on the type of work, so bill parts and labor as separate lines and register with the South Carolina Department of Revenue before you start collecting.
Open a business bank account under the registered name, then invoice from a tool that applies SC tax per line item and accepts cards. Glo Invoice sends invoices by text with a one-tap pay link, and Tap to Pay lets you charge on site before you leave the job.