Starting a business in South Carolina means joining forces with a state that’s built its economy on precision, logistics, and adaptability. Industries such as advanced manufacturing, aerospace, and technology have deep roots and serious momentum in South Carolina. The aerospace industry, for example, employs 136,000 people and has had an economic impact of $28.8 billion in the state.

Whether you want to capitalise on the Port of Charleston’s efficiency, tap into Greenville’s growing tech scene, or take advantage of a workforce programme customised to your business, South Carolina has a lot to offer. Below, we’ll explore why you might want to start a business in South Carolina, the legal steps you’ll need to take, and how you can access resources for South Carolina entrepreneurs.

What’s in this article?

• Why start a business in South Carolina?
  
• What are the legal steps to start a business in South Carolina?
  
• How do you access resources for South Carolina entrepreneurs?
  

Why start a business in South Carolina?

South Carolina offers businesses distinct advantages. Here are some reasons to start a business in the state.

Pro-business climate

South Carolina backs up its business-friendly status with tangible programmes, including:

• Tax credits for creating jobs, especially in rural or economically disadvantaged areas

• Discretionary grants to help offset startup costs for new facilities

• Incentives for manufacturing, aerospace, or logistics businesses

Central location

The Port of Charleston is one of the biggest ports in the United States and provides efficient access to major markets in the Southeast such as Atlanta, Charlotte, and Jacksonville, as well as international markets. This is important for businesses that are targeting East Coast customers or need fast access to distribution hubs.

Affordable property

South Carolina’s commercial property market is more affordable than those of places such as Georgia and North Carolina. You’ll find industrial sites and office space at lower costs, and many areas are already zoned with utilities in place. The state has a dedicated team to help businesses that are interested in opening a manufacturing plant, warehouse, or retail space with site selection.

Workforce development customised to your needs

South Carolina offers numerous workforce development opportunities. ReadySC, a state-run programme, provides free recruitment and training for workers based on your business needs. In industries such as advanced manufacturing and tech, this means you’re working with people trained specifically for your operation.

Clemson University and the University of South Carolina also have research partnerships with businesses, particularly in engineering, life sciences, and information technology (IT). This means easier access to research and development (R&D) resources without the need to build your own in-house lab.

Lifestyle perks for attracting talent

The location of your business can have an impact on recruiting and retaining talent. South Carolina’s mix of coastal cities, historic towns, and lower cost of living can be a strong selling point. Charleston’s foodie scene and tech hub appeal to younger workers, while cities such as Greenville offer a mix of urban amenities and outdoor activities (e.g. hiking, biking, lake life).

Housing here is affordable, especially compared to that of nearby metropolitan areas such as Atlanta. Combined with low property taxes and a slower pace of life, this can make it easier to convince people to relocate.

Specialised industry hubs

South Carolina has developed expertise in certain sectors. You’re more likely to find built-in networks and support in this state for industries such as the following:

• Automotive: The state is the number one exporter of tyres in the US and has a dense network of suppliers tied to companies such as BMW.

• Aerospace: Boeing’s presence in Charleston has created a skilled aerospace workforce and an expanding aerospace industry.

• Advanced manufacturing: From textiles to precision tools, manufacturing has a massive presence here.

Cultural and economic momentum

Areas such as Charleston and Greenville have created dynamic business environments that welcome improvement. Whether you’re launching a tech startup or opening a boutique, the market is open to fresh ideas.

What are the legal steps to start a business in South Carolina?

Here are the legal steps you need to follow to start your business in South Carolina.

Pick your business structure

How you set up your business – whether that’s as a sole proprietorship, partnership, limited liability company (LLC), or corporation – affects taxes, liability, and your paperwork obligations. Many people lean towards an LLC because it’s simple, protects your personal assets, and doesn’t require corporate-level upkeep. If you’re expanding or planning to take on investors, a corporation might make more sense.

Register your business name

Ensure your desired business name is available by searching for it on the secretary of state’s website. If you’re not ready to officially file yet, you can reserve the name for 120 days. If you’re running your business under a name other than its legal one, you’ll need to file a “doing business as” (DBA) name with your county.

File the right paperwork

If you’re forming an LLC, corporation, or limited partnership, you’ll need to register with the secretary of state. You’ll file articles of organisation for an LLC, articles of incorporation for a corporation, and a certificate of limited partnership for a limited partnership. You can do so online or by post.

Get an Employer Identification Number (EIN)

An EIN is like your business’s Social Security number. You’ll need it to open a bank account, pay employees, file taxes, and more. Even if you’re running a one-person enterprise, it can be a smart choice to get one. The Internal Revenue Service (IRS) makes it easy to apply online, and it’s free.

Register for state taxes

Most businesses in South Carolina need to register with the Department of Revenue. If you’re selling goods or taxable services, you’ll need to register for sales tax. If you have employees, you’ll need to register for withholding tax. If you work in specific industries such as hospitality, alcohol, and fuel, you’ll have to register for additional taxes.

You can handle all this on the MyDORWAY portal, the state’s online tax system.

Get any licences or permits you need

South Carolina doesn’t require a state-wide business licence, but cities and counties often require one. There might also be industry-specific permits required based on what you’re doing. For example, specialised service providers such as contractors, accountants, and medical services might need professional licences, and food service businesses need specific health permits.

Open a business bank account

Protect yourself by separating your personal and business finances for taxes and accounting. Most banks will ask for your EIN, business registration paperwork, and an ID to get started.

Protect your business with insurance

Many companies can benefit from business insurance. It’s better to have coverage and not need it than to regret not getting it. Consider looking into:

• General liability insurance to cover accidents or legal claims

• Employee insurance (workers’ compensation), which is required if you have four or more employees

• Professional liability insurance, if you’re offering services where mistakes could cost clients money

Know the rules for hiring employees

If you’re hiring employees, you’ll need to take additional steps, including:

• Reporting new employees to the state’s New Hire Reporting Program

• Following wage and hour laws (e.g. minimum wage, overtime)

• Posting labour law posters where employees can see them

If you’re unsure of your obligations, consider working with a certified public accountant or lawyer who can advise you on specifics.

How do you access resources for South Carolina entrepreneurs?

As an entrepreneur, you can gain a lot from tapping into local organisations and networks specific to your stage of growth and industry. In South Carolina, there are many avenues entrepreneurs can explore for funding, networking, educational resources, and more. Here’s how to find them.

Start with Small Business Development Centers (SBDCs)

SBDCs provide entrepreneurs with free one-on-one consulting and resources for planning, funding, and growing a business. Whether you’re drafting your first business plan or scaling an established company, SBDC advisers can guide you with academic and real-world expertise.

They specialise in areas including:

• Funding through loans, grants, or investors

• Permits and licences

• Market research and financial analysis

There are SBDCs across the state so you can schedule an in-person or virtual meeting based on what’s convenient.

Get help from the South Carolina Department of Commerce

The Department of Commerce is a powerful resource for businesses of all sizes. Its Business Services division provides guidance on:

• Site selection, if you’re opening a physical location

• Connecting with local economic development teams for grants and incentives

• Workforce recruitment programmes such as ReadySC, which trains workers specifically for your business needs

It also hosts industry-specific events and networking opportunities, which can help you meet partners, suppliers, and customers.

Find funding support

Gaining access to capital is often the biggest obstacle for a new business. South Carolina has multiple avenues to explore for funding, including the following:

• South Carolina Research Authority (SCRA): If you work in tech, life sciences, or advanced manufacturing, SCRA provides grant funding, mentorship, and coworking spaces.

• Community Development Financial Institutions: Organisations such as the South Carolina Community Loan Fund provide affordable loans to entrepreneurs who might not qualify for traditional financing.

• Local banks and credit unions: Banks such as SouthState and First Citizens have strong ties to local business communities and often have small business loan programmes backed by the Small Business Administration.

Many funding programmes require you to prepare a business plan, so connect with SBDC or SCORE mentors to refine yours before you apply.

Join local entrepreneur networks

South Carolina has a network of entrepreneur-focused organisations and events where you can meet other business owners, investors, and mentors. Local chambers of commerce normally have small business committees or events designed for networking and resource sharing. You can also look into the following:

• 1 Million Cups: Regular meet-ups where entrepreneurs present their businesses and get feedback from peers.

• Innovate South Carolina: A collaborative network that connects startups to investors, researchers, and service providers across the state.

These groups provide opportunities to network, collaborate, and share insight on working in South Carolina’s business environment.

Take advantage of workforce development programmes

South Carolina’s workforce training programs are a goldmine for entrepreneurs who are looking for employees. Here are some of them:

• ReadySC: This programme trains employees specifically for your business. It’s free for qualifying businesses and customised, which is especially helpful if you’re in manufacturing or other high-skill industries.

• Apprenticeship Carolina: If your industry involves skilled trades or niche expertise, this programme helps you create apprenticeship opportunities to build your workforce from the ground up.

These programmes can reduce recruitment costs and prepare your team to begin work immediately.

Tap into research institutions

South Carolina’s universities support improvement and entrepreneurship. Here are some examples:

• Clemson University: Clemson is known for its advanced manufacturing and engineering expertise and offers partnerships for R&D, prototypes, and commercialisation.

• University of South Carolina: This university’s research facilities and incubators, such as the Innovista Research District, provide access to cutting-edge resources in health sciences and IT.

• Technical College System: Technical colleges can be partners for product testing or pilot programmes as well as workforce training.

Use free online tools and portals

South Carolina has made several business processes easier for entrepreneurs with the following digital options:

• South Carolina Business One Stop (SCBOS): This is the go-to portal for registering your business, handling taxes, and managing compliance.

• MyDORWAY: This is the state’s online tax system, where you can register, file, and pay taxes.

• Online business licence offices: Many municipalities let you apply for and renew business licences online.

Work with local economic development offices

Each county in South Carolina has an economic development office that focuses on helping businesses grow in the area. For example, Greenville and Charleston’s development teams are particularly active in supporting entrepreneurs in tech, manufacturing, and tourism. These offices can help you:

• Address local zoning and permits

• Connect with area-specific grants and tax credits

• Access infrastructure resources such as office space, manufacturing sites, and coworking hubs

Build relationships with SCORE mentors

SCORE chapters in South Carolina pair you with experienced business mentors who provide free guidance on everything from scaling operations to refining your marketing strategy. Sessions can be one-on-one meetings or part of workshops.

Engage with industry-specific groups

South Carolina’s major industries – automotive, aerospace, agribusiness, and technology – have their own support systems, including the following:

• SC Automotive Council: A network of suppliers, manufacturers, and innovators in the state’s automotive industry

• SC Aerospace: An organisation that supports businesses in aerospace manufacturing, supply chains, and improvement

• Agribusiness Center for Research and Entrepreneurship: A group that connects farmers and food entrepreneurs with funding, training, and marketing opportunities