South Carolina businesses have traditionally been required to pay business license taxes based on their gross income. But those rates historically varied from jurisdiction to jurisdiction. In 2020, the state passed the South Carolina Business License Tax Standardization Act meant to create uniformity in business taxes and simplify much of the application, collection, and appeals process. The effective date for the new law was delayed until January 1, 2022. Here is an outline of the most significant reforms to the state’s business license process. 

South Carolina Business License Term

The first reform contained in the law is that all South Carolina business licenses will now be issued for the same 12-month period, which will be May 1 to April 30. Businesses may renew their licenses during this period by paying their license tax, which will be based on their gross income for the preceding calendar year. 

The Act defines “gross income” as your business’s gross receipts or gross revenue for the calendar year. The appropriate taxing jurisdiction will depend on whether the business is based in a single location or operates remotely. If it operates remotely, the figure will be based on where the items are shipped. 

South Carolina Business License Application Process

The second reform relates to how businesses should apply for their business licenses. There is now a standard business license application form that the South Carolina Revenue and Fiscal Affairs Office provides. To simplify matters even more, your business can choose to use the online portal or continue to renew its license through the mail. 

South Carolina Business Tax Collection

The third issue covered in the reform is that South Carolina taxing jurisdictions are now permitted to contract with third parties to pursue the collection of delinquent business license taxes. However, businesses are required to provide these companies with any confidential information. Also, businesses have the option of sending a written request to their taxing jurisdiction to opt-out of any third-party communications. 

South Carolina Business Remedies Against Third Parties

Finally, South Carolina businesses now have the option to bring a private action against third parties entities that engage in harassing behavior against them. Specifically, the law states that a business can recover up to three times the actual monetary loss due to the violation. 

Whether you’re a new or established business in Charleston, SC, you need a commercial real estate partner you can trust. With over 80 years of experience helping local business clients achieve their goals, Caldwell Commercial Real Estate remains a trusted and premier provider of commercial real estate and property management services. Contact us today to learn more.