How Your County Works: Business Licenses

March 6, 2018

The March 15 deadline is fast approaching for the nearly 10,000 businesses and contractors operating in Richland County to renew their licenses, giving them the green light to continue making products, selling goods and providing the services that keep the local economy strong.

Among the purposes for the County’s business license program, protecting the community is essential. Licenses help ensure businesses – including home-based businesses – are legitimate and operating in compliance with all Richland County codes.

“Business licenses aren’t just another government tax,” said Pam Davis, manager of the Richland County Business Service Center. “A business license helps potential customers recognize that the business is complying with regulations that keep everyone safe.”

As an example, a manufacturing company that uses dangerous chemicals requires a special hazardous materials permit before it can obtain a business license, whereas a restaurant requires approval from the S.C. Department of Health & Environmental Control before being issued a business license.

A business license fee is different than the taxes a business owner pays. It is not a tax on revenue or property; it is a tax on the privilege of doing business within a jurisdiction. Money received from business licenses is put into the County’s General Fund, which financially supports the wide-ranging public services provided by County departments, including public safety, public works, courts and many others.  In 2017, approximately $7 million was collected in business license fees.

Some of the requirements for acquiring a business license are:

  • Building inspections: businesses must have a Certificate of Occupancy and be compliant with standards set forth in building codes
  • Fire marshal approval: commercially located businesses must be inspected to ensure they meet fire codes
  • Zoning approval: all businesses must be zoned appropriately for their location

Some businesses require alcohol, food, retail or occupational licenses, which are regulated and issued at the state level.

Business license fees are calculated based on gross revenue, type of business and location. The cost of a business license can range from zero dollars (for businesses that are able to deduct their entire revenue, like contractors working under a building permit) to hundreds of thousands of dollars for multimillion-dollar companies. In Richland County, the median bill for a business license is $67.17, and 79 percent of all business license bills are $500 or less.

Richland County’s Business Service Center makes it easy for business owners to renew their licenses, whether online or in person at the County Administration Building. The staff works with business owners individually to ensure they understand the licensing process.

The deadline for renewing a business license without penalty is March 15. For more information, visit rcgov.us/bsc, call 803-576-2287, email [email protected] or visit the Business Service Center, which is located on the first floor of the County Administration Building, 2020 Hampton St., Columbia.