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1. What is a business License?

A business license is an excise tax levied on the privilege of doing business in the City of Greenville. The value of that privilege is measured by a business’ gross income. Even though it is measured by gross income, a business license is not a sales, property, or income tax.

2. What gives the City the right to require a business license?

South Carolina Code, Section 5.7.30 authorizes municipalities to levy a business license tax based on a business’ gross income.

3. Who is required to have a business license?

Any business physically located within the City of Greenville (resident business) is required to have a business license. Additionally, any business that is located outside of the City of Greenville (nonresident business) but comes into the City to do business is also required to have a business license.

4. What is the difference between a resident business and a nonresident business?

Resident businesses are businesses that are physically located inside the City of Greenville and their business license fee is based on 100% of the gross income generated at their location.

Nonresident businesses are businesses that are located outside the City of Greenville but come into the City to do business. Their business license fees are based on gross income generated within the City, but at double the rate of a resident business.

5. How do I apply for a business license?

If you are renewing your license and know your correct classification, you can download the application and rate sheet from the City’s website. To learn more about the application process, visit the Business Licensing page.

6. How long is a business license good?

Business licenses are valid from January 1 to December 31 each year. Businesses are required to renew their licenses at the beginning of every year. The City offers a grace period until the last day of February for businesses to renew without incurring a penalty.

The grace period does not apply to nonresident contractors, which are required to pay as they go on a current year basis.

7. Can I operate 2 types of businesses under 1 license?

If a business conducts more that 1 type of business from a single location, each business is classified separately. It is not unusual for 1 business to have more than 1 license. Examples include wholesale and retail within the same business operation or a hotel with a restaurant at the same location. In both cases, the revenue is separated into each type of business and a separate business license is required.

8. Can other people operate under my license?

Any W-2 employee can operate under your business license. Any 1099 or subcontractor must have their own separate business license. This would include subcontractors working for a general contractor, janitorial services, or catering type business that are hired by you to perform work on your behalf or for you.

Just remember that if the person or company is not on your payroll with all state and federal taxes taken out, they need their own license.

9. Are there any other requirements to get a business license?

You need to make sure you have all proper state licenses (contractor, specialty, ABC, retail licenses, etc.) prior to applying for a City of Greenville business license. Contractors wishing to operate within the City of Greenville will be required to provide a copy of their South Carolina State Contractor's or Home Builder's license before obtaining a City business license.

Providing a copy of the state license with the business license application will also help to avoid any delays with the permitting process. All resident businesses must also apply for either a Home Occupancy Approval or Certificate of Occupancy at the time they apply for a business license.