To operate as a wholesaler in South Carolina, you apply for a Retail License through the South Carolina Department of Revenue. The state does not issue a separate wholesale license in SC for general merchandise; the Retail License is the single permit that both authorizes wholesale sales and lets you buy inventory tax-free. It costs $50 per business location, is applied for through the SCDOR’s online portal MyDORWAY, and is typically approved within five business days.
Why South Carolina Calls It a Retail License
South Carolina law requires every retailer to obtain a Retail License before making any taxable sales.1South Carolina Legislature. South Carolina Code Title 12 Chapter 36 Section 12-36-510 – Retail License Requirements; License Tax; Special Events The statute uses the word “retailer,” but the SCDOR runs wholesalers through the same registration. When you apply on MyDORWAY, you simply select “Retailer” or “Wholesaler” as your tax type, and both choices produce the same Retail License.2South Carolina Department of Revenue. Licensing (Retail License)
One category sits outside this process. If your wholesale business sells motor vehicles to dealers and other wholesalers, you need a separate Motor Vehicle Wholesaler license from the SC Department of Motor Vehicles, not the Retail License described here. For every other type of merchandise, the Retail License is what you need. It registers you to collect South Carolina’s 6% state sales tax and gives you the right to purchase inventory tax-free using a Resale Certificate.3South Carolina Department of Revenue. Sales and Use Tax Index
What You Need Before Applying
The SCDOR ties your tax account to a recognized business, so get the groundwork done first.
A business structure. Most wholesale operators form an LLC or corporation to separate personal assets from business liabilities, though a sole proprietorship works too.4IRS.gov. Choosing a Business Structure LLCs and corporations register their business names with the Secretary of State when they form.
A Federal Employer Identification Number. The EIN is a nine-digit number the IRS assigns to identify your business for tax purposes. You need one if you have employees, operate as a corporation or partnership, or withhold taxes on payments to non-resident aliens, and you can request one anyway for banking or state tax purposes.5Internal Revenue Service. Employer Identification Number The online application is free and the number is issued immediately.
A trade name, if you’re using one. South Carolina does not have a formal state-level DBA registration.6South Carolina Business One Stop. Registering with the Secretary of State If you’re operating under a name other than your legal name, you can document the trade name when you apply for your EIN with the IRS.
How to Apply on MyDORWAY
The whole application runs through MyDORWAY, the SCDOR’s free online portal.7South Carolina Department of Revenue. File and Pay Options for Businesses From the homepage, click “Business Tax Application” to begin. You’ll be asked for:
- Your business type (select Retailer or Wholesaler so the right permit is issued)
- A six-digit NAICS code describing your industry
- The physical address of each place of business; a separate Retail License is required for each location2South Carolina Department of Revenue. Licensing (Retail License)
- Social Security numbers or EINs for all officers, partners, or owners
- A brief description of the products you sell, which helps the state flag any additional permits needed for regulated goods
After signing electronically, you pay the $50 per-location license fee by credit card or electronic check.1South Carolina Legislature. South Carolina Code Title 12 Chapter 36 Section 12-36-510 – Retail License Requirements; License Tax; Special Events The fee is nonrefundable, and the SCDOR will not process the application without it.2South Carolina Department of Revenue. Licensing (Retail License)
Approval typically arrives by email within five business days.8South Carolina Department of Revenue. Apply for a Business Tax Account You print the license from your MyDORWAY account and display it at your place of business.
Using the Resale Certificate
Your Retail License unlocks the South Carolina Resale Certificate, Form ST-8A. This is the document you give suppliers so they don’t charge you sales tax when you buy inventory for resale.9South Carolina Department of Revenue. Sales Tax Exemptions Sales tax gets collected once, at the final sale to the consumer, not at every step in the supply chain.
Fill in your Retail License number, business name, and a description of the goods you’re buying for resale, then hand the completed form to your vendor. Do not submit it to the SCDOR. Your supplier keeps the certificate on file to justify the tax-exempt sale in case of an audit.9South Carolina Department of Revenue. Sales Tax Exemptions
The Retail License is your legal permit. The Resale Certificate is the everyday tool you use in transactions. Never use the certificate to buy things for personal use; the penalties for that are described below.
If Your Business Is Based Outside South Carolina
Out-of-state wholesalers who sell into South Carolina still need a Retail License once they cross the economic nexus threshold. A remote seller has economic nexus when gross revenue from sales of tangible goods, digital products, or services delivered into South Carolina exceeds $100,000 in the current or previous calendar year.10South Carolina Department of Revenue. Remote Sellers No physical presence in the state is required to trigger the obligation. The application is the same: register through MyDORWAY, pay the $50 fee, and start collecting South Carolina sales tax.
What Comes With the License
Getting the Retail License is the beginning of your tax relationship with the state, not the end. Three ongoing obligations attach to it.
Sales Tax Filing
South Carolina’s statewide sales tax rate is 6%, and local jurisdictions can add voter-approved taxes on top, pushing the combined rate as high as 9% in some counties.3South Carolina Department of Revenue. Sales and Use Tax Index New accounts are automatically set to file monthly. If your sales volume is low enough to justify quarterly or annual filing, you can request a change by sending a message through MyDORWAY or emailing salestax@dor.sc.gov, subject to SCDOR approval. Businesses with $15,000 or more in South Carolina tax liability per filing period must file and pay electronically through MyDORWAY.11South Carolina Business One Stop. South Carolina Sales Tax
Business Personal Property Tax
Every business operating in South Carolina must file a Business Personal Property Tax return covering equipment, furniture, fixtures, and other tangible assets used in the business.12South Carolina Department of Revenue. Business Personal Property The return is due four months after the close of your accounting year. If your books close on December 31, the return is due by April 30. Whether you file with the SCDOR or your local county depends on your NAICS code. Businesses with $15,000 or more in property tax liability must file and pay electronically. Failing to file can lead to license revocation.
Local Business License
South Carolina does not have a statewide business license. Instead, counties and municipalities issue their own, and requirements vary by jurisdiction.13South Carolina Business One Stop. Local Business License Not every municipality requires one, but many do, and operating without the required local license can result in fines or a shut-down order. Contact the city or county clerk where your business is physically located to find out what applies. This is a separate obligation from your state Retail License and easy to overlook.
Penalties for Operating Without a License
Selling in South Carolina without a valid Retail License, or continuing to operate after your license has been suspended, is a misdemeanor. Conviction carries a fine of up to $200, up to 30 days in jail, or both, and corporate officers can be held personally liable.14South Carolina Legislature. South Carolina Code Title 12 Chapter 36 Section 12-36-560 – Operation of Business Without License or With License Suspended; Penalty These cases are tried in magistrate’s court.
Using a Resale Certificate to buy personal items tax-free triggers a separate penalty on top of the unpaid tax. The penalty starts at 5% of the tax owed for the first month and adds another 5% for each additional month the tax remains unpaid, capping at 50% of the original amount.15South Carolina Legislature. South Carolina Code Title 12 Chapter 54 Section 12-54-43 – Civil Penalties and Damages Applicable to Every Tax or Revenue Law Requiring Return or Statement Filing With Department The 50% cap is in addition to the full tax you already owe, and the SCDOR can revoke your Retail License entirely.
Keeping the License Active
South Carolina Retail Licenses do not expire. As long as you continue operating at the same location under the same ownership, your license stays valid indefinitely with no renewal fee.2South Carolina Department of Revenue. Licensing (Retail License) Three situations change that:
- Ownership change. If the business changes hands, the previous owner’s license becomes invalid and the new owner must apply for a fresh one.
- Location change. Moving to a new address requires updating your license through MyDORWAY.
- Inactivity. If you go 24 consecutive months without making any sales, South Carolina law requires you to surrender your Retail License.2South Carolina Department of Revenue. Licensing (Retail License)
Staying current on your sales tax filings and business personal property tax returns is the simplest way to keep the license in good standing. The SCDOR has authority to revoke licenses for persistent noncompliance, and reinstating a revoked license is considerably harder than keeping an active one.