Business Licenses

• South Carolina law authorizes municipal governments to levy a business licensing fee -- based on gross business income -- on anyone operating a business inside city limits. Counties can do the same in unincorporated areas. If a business operates in more than one jurisdiction, it has to pay licensing fees in all jurisdictions that require it. State law exempts or limits the tax on some businesses, such as banks, buses, taxi service and telecommunications companies.
  
  

Regulation

• Local governments can impose rules and requirements that businesses must meet to qualify for a license. This can include limits on operating hours, health regulations or a requirement that the business must post a bond. Most business-license laws require the person taking out the license to have paid her personal property taxes. Local governments can revoke a license if a business is convicted of breaking the law, but that doesn't authorize closing the business. The government can, however, prosecute the business if it continues to operate without a license.
  
  

Reasonableness

• Local governments must not set the license fee unreasonably high, but reasonableness is largely a matter of discretion -- there are no state guidelines. A tax on one class of business that's several times higher than other classifications isn't inherently unreasonable. The fact the business is losing money doesn't affect reasonableness either: The tax is based on total income, regardless of whether business expenses outstrip that income. Generally, courts assume city councils and county commissions are setting fees rationally.
  
  

Retail License

• If you engage in any sort of retail business, you'll need to register with South Carolina for an out a state retail license, even if you only make occasional sales. If you sell in multiple stores or locations, you need one license for each; unlike business licenses, the retail license won't expire as long as you keep that location. You can purchase a special license for selling your work at arts and crafts shows or a transient retail license if you have no fixed base.