Starting a service business in South Carolina

Form your business in South Carolina

South Carolina LLCs are organized with Articles of Organization, filed online in the state's business filings system or on paper. The fee set by S.C. Code 33-44-1204 is $110, and that is the amount to expect as of October 2026. The Secretary of State's pages we read did not list a turnaround time, so call the Division of Business Filings if you need a date.

Ongoing state filings

South Carolina LLCs that are not taxed as corporations do not file an annual report or pay the corporate license fee, according to the SC Department of Revenue. If your LLC elects to be taxed as a corporation, it must file Form CL-1, the Initial Annual Report of Corporations, with the Department of Revenue within 60 days of starting business, and then annual reports with the corporate license fee (minimum $25). Ask your accountant before making that election.

Using a business name (DBA)

The Secretary of State says plainly that it does not register DBA or trade names. There is no state DBA filing to make. In practice the name you work under shows up on your city or county business license and your bank account, so ask your local business license office how it wants a trade name listed.

Not sure whether you need an LLC at all? Read LLC vs sole proprietor for contractors, then get your free EIN from the IRS.

Licensing for service trades

The SC Department of Labor, Licensing and Regulation (LLR) runs two boards that matter to home-service companies. The Residential Builders Commission covers residential work: a residential builder license applies when a job exceeds $5,000, and residential specialty contractors need state credentials when a job exceeds $500 (S.C. Code 40-59-20). Plumbers, electricians, and heating and air conditioning installers and repairers must pass an exam and be licensed. Painters and wallpaper hangers, carpenters, drywall installers, masons, siding installers and others register without an exam. Specialty contractors need a bond when a job for a property owner exceeds $5,000. The Contractor's Licensing Board licenses general and mechanical contractors on commercial and larger work when the total cost exceeds $10,000 (S.C. Code 40-11-30). Lawn care, cleaning and pressure washing are not named in either list. Anyone who applies pesticides in categories such as ornamental and turf on another person's property for pay needs a commercial applicator license from the Clemson University Department of Pesticide Regulation, which lists a $50 fee for a new license as of October 2026.

• SC LLR Residential Builders Commission: Residential builders over $5,000; residential specialty contractors (plumbing, electrical, HVAC, painting and more) over $500
• SC LLR Contractor's Licensing Board: General and mechanical contractors over $10,000
• Clemson University Department of Pesticide Regulation: Commercial pesticide applicator licenses

Workers' compensation

The SC Workers' Compensation Commission says businesses that regularly employ four or more employees in South Carolina must carry workers' compensation. Businesses with fewer than four employees, or with an annual payroll under $3,000, are exempt (S.C. Code 42-1-360). You can buy coverage from a commercial insurance carrier licensed to write it, through the state's assigned risk program administered by NCCI if carriers turn you down, or by qualifying for self-insurance or a self-insurance fund. Many general contractors and property managers will ask for a certificate of coverage before you work for them even if you are under four employees, so price a policy early.

More on coverage: business insurance for contractors.

Sales tax on services

South Carolina taxes the sale of goods and only a short list of services, such as laundering and dry cleaning, electricity and communications (S.C. Code 12-36-910). The SC Department of Revenue says that if the service you provide is not one of the specifically taxed services, you do not need a retail license. Typical home services like lawn care, house cleaning and pressure washing are not on that list. If you also sell taxable goods, apply for a retail license through MyDORWAY; the Department lists a $50 non-refundable fee as of October 2026. When you install materials as a contractor, ask the Department how tax applies to those materials before you price the job.

Recording business calls in South Carolina

South Carolina is one-party consent. S.C. Code 17-30-30(C) makes recording lawful when you are on the call or one participant agreed in advance. If you serve vacation rentals whose owners live out of state, their state's rules may be stricter, so a short recorded notice is worth adding; see our guide to recording business calls.

See our guide to recording business calls before you turn on call recording or an AI receptionist.

How the seasons shape the work

South Carolina's long, humid warm season keeps mowing, pest pressure, mildew washing and air conditioning calls running from spring well into fall, and pollen season each spring is peak time for pressure washing. The coast from Myrtle Beach to Hilton Head plans around hurricane season, with storm prep, tree work and roof repairs after named storms, plus vacation rental turnover cleaning in summer. Winters are mild, but occasional ice storms in the Upstate bring frozen-pipe and tree calls.

Your local business license runs May to April

Under S.C. Code 6-1-400, municipal and county business licenses run for a twelve-month period from May 1 to April 30, and the tax is computed on your gross income for the prior calendar year. A new business pays on its estimated income for the rest of the license year. Residential specialty contractors are not exempt from local business license ordinances (S.C. Code 40-59-240), so check every city you work in, not just your home base.

Roofing contracts paid by insurance

If you do roofing work paid from a homeowner's insurance claim, Chapter 40-59 gives the homeowner the right to cancel until midnight of the fifth business day after the insurer denies the claim, requires a detachable notice of cancellation in the contract, and bars requiring payment before those five days pass except for emergency work.

Then set up the back end that gets you hired

The paperwork makes you legal. Customers still have to find you, reach you and pay you. Before your first job, set up a business phone number, email on your own domain, a Google Business Profile, a simple website, and a way to send quotes and take card payments. The launch checklist lays out the order.

South Carolina questions