department of management and
budget
Business License Frequently Asked Questions
Call Us at 864-467-4505
The information included in this section may never have all of the information
that you need or answer every question that you may have. The City Staff is
available to assist you with any questions or information you need concerning
business license. Our number is 864-467-4505.
What is a Business License?
What gives the City the right to require a Business License?
Who is required to have a Business License?
What is the difference between a Residenet Business and a
Non-resident Business?
How do I apply for a business license?
How much does a business license cost?
How long is a business license good?
What if I refuse to purchase a license?
What are the penalties for businesses operating prior to getting a
business license?
What are the penalties for businesses that are late renewing their
business license?
Can business license penalties be waived?
Will the business license fee always be the same?
What do I do if I have a change in FIN/EIN/SSN due to business
restructuring or purchase of the business?
Can I operate two types of businesses under one license?
Can other people operate under my license?
Are there any other requirements to get a business license?
Who establishes the amount of the business license fee?
How is gross revenue defined?
What do I get for the Business License fees that I pay?
Who needs a Commercial Property license?
What is a Business License?
A business license is an excise tax levied on the privilege of doing
business in the city of Greenville and 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.
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.
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 (non-resident business) but
comes into the city to do business is also required to have a business license.
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What is the difference between a Resident Business and a
Non-resident 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.
Non-Resident 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.
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 web site. You can also
request an application and rate sheet by mail or fax, or pick one up in the
Business License office on the 4th floor of City Hall at 206 South Main Street.
If you are a new business, please contact our office at 864-467-4505 so that we
can assist you in selecting the correct classification and rate sheet. You may
learn learn more about your classification and estimate your fees using our
online
Business License Calculator.
How much does a business license cost?
The business license fee is calculated based on gross income and the type of
business. Our staff will be glad to assist you in determining your specific
classification and resulting fee.
You may receive an application and rate sheet by mail, fax or at our office on
the 4th floor of City Hall at 206 S. Main Street. If you are renewing your
license and know your correct classification, you may obtain a Business License Application or a Contractor Business License Application, and use our
Business License Calculator to
estimate your rate.
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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 Non-resident Contractors, which are
required to pay as they go on a current year basis.
What if I refuse to purchase a license?
In cases where an individual refuses to purchase a license, a Uniform Summons to
appear in Municipal Court is issued and the case is heard before the municipal
judge. Failure to purchase a business license can result in court costs and
fines of up to $1,092.50 and/or 30 days in jail. The court fine is in addition
to all business license fees and penalties.
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What are the penalties for businesses operating prior to getting a
business license?
To avoid penalties, a business must obtain a business license prior to opening
to the public. If a business has been in operation without a business license,
it could be subject to fees and penalties for a period of up to 3 prior years in
addition to the current year. The penalty for the first month is 10% of their
gross income and increases 10% each month up to a 50% maximum yearly penalty.
What are the penalties for businesses that are late renewing their
business license?
Business license renewals postmarked March 1 or later by the U.S. Postal Service
will be assessed a 5% penalty. This penalty will increase 10% each month up to a
50% maximum penalty.
Can business license penalties be waived?
Per City ordinance, and in compliance with the equal protection clauses of the
South Carolina and United States constitutions, business license officials are
not permitted to waive penalties under any circumstance.
Will the business license fee always be the same?
No. By state law, business licenses are based on a business’ gross income. A
business’ first business license fee will be based on a reasonable estimate of
gross income from the start of operation to December 31 of that year. The base
business license fee covers $2,000 of gross income. After a business’ initial
business license, subsequent licenses will be based on actual gross income from
the previous year.
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What do I do if I have a change in FIN/EIN/SSN due to business
restructuring or purchase of the business?
If a business restructuring occurs, the ownership structure of an existing
resident business changes from/to sole proprietor, LLC, corporation, LLP,
partnership or any other form of ownership, and there is no purchasing of the
assets of the existing licensed business, a new business license is not
necessary. However, we do require that you notify the Business License Auditor,
in writing, of the change so that we may update the information in our system.
Please use the change form below for business restructuring only:
Download a Change Form
If an ownership change occurs or a new business purchases the assets of an
existing business resulting in a FIN/EIN/SSN change, a new business license is
required. If the original business has a current year business license, the new
owner has 45 days from the date of the change of ownership to be eligible for a
$50 license transfer fee. No penalties are due if you transfer within the 45
days. After the 45 days you will be required to purchase a current business
license and pay for any prior year licenses owed, as well as any appropriate
penalties.
If you have any questions regarding business restructuring and ownership changes
please contact the Business License Auditor at (864) 467-4502.
Can I operate two types of businesses under one license?
If a business conducts more that one type of business from a single location,
each business is classified separately. It is not unusual for one business to
have more than one 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.
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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, caters,
etc., 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.
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 S.C. State Contractors or Home Builders
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.
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Who establishes the amount of the business license fee?
City Council
How is gross revenue defined?
All revenue received from a business operation without any deductions for cost of
goods sold, salaries, or cost of sales. It should conform to the gross income
reported for state and federal income tax purposes.
What do I get from the business licenses fees that I pay?
A business license fee enables essential services such as fire protection,
street and sidewalk maintenance, parks and recreation programs, code enforcement
activities and building inspections. Funding from this fee ensures quality
service to the residents and business owners located in the city, as well as to
business owners coming into the city to conduct business. These revenues help
ensure a high quality of life, which in turn helps create a desirable and
prosperous business environment in the City of Greenville.
Who needs a Commercial Property license?
All properties that generate gross rents from the leasing of commercial real estate, constitutes business income for computing a license tax. The type of tenant is immaterial.
The City Business License Ordinance defines Commercial Property as:
Commercial/rental property requires a business license when the property generates $5,000 or more annually. If the same entity owns more than one property, one license will be required with all gross rental income included on that license.
Exemptions:
- Commercial properties that are owner-occupied by the same entity.
- Commercial property that generates less than $5,000 in gross rental income must file an application, however no fee is required.
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