South Carolina: The Palmetto State

South Carolina covers an area of ​​83,000 km² in the southeastern United States. The Palmetto State is bordered by North Carolina to the north, Georgia to the west and south, and the Atlantic Ocean to the east. According to ehuacom, a good five million people live in the state whose capital is Columbia.

The Palmetto State is known for its hospitable and business-friendly climate. Area Development Magazine consistently ranks South Carolina as one of the top five states to do business. All companies of all sizes are offered a good starting point here.

The South Carolina Department of Commerce has a long and successful track record of helping international companies establish, relocate and expand their operations in the US and North American markets. More than 1,200 offices of international companies call South Carolina home. Foreign-majority companies employ more than 158,000 people in the Palmetto State.

South Carolina Location Map

MASTER OF MANUFACTURING

With the production of advanced materials, the economy of the state has been revved up. From plastics and optics to photonics and composites, South Carolina today supplies the world’s manufacturers with the products needed to create some of industry’s most complex products. Nearly 800 advanced materials companies are based in South Carolina.

From high-end automobiles and home appliances to boats and airplanes, every time a finished product rolls off the state’s assembly line, it cements South Carolina’s reputation as the ideal location for advanced manufacturing.

South Carolina is home to one of the nation’s most dynamic aerospace centers. With an annual economic output of more than $28 billion, this sector has become an important pillar of the state’s economy. Since 2009, when Boeing chose North Charleston for its final assembly and delivery facility, the state’s aerospace industry has skyrocketed.

South Carolina’s manufacturing industry is growing at a record pace and shows no signs of slowing down. In fact, the Palmetto State has seen average job growth of more than 18 percent over the past decade.

WORKERS AS DRIVERS OF SUCCESS

In addition to the business-friendly environment, companies also come to South Carolina because of the favorable working atmosphere. Area Development magazine ranked the state third for low labor costs and fourth for workforce development programs. South Carolina has the lowest percentage of all employees covered by a collective bargaining agreement nationally. At under three percent, union density is also the lowest in the United States, and in the private sector it is even under two percent. With low corporate tax rates and competitive wages, South Carolina’s job market has consistently outpaced national growth.

The driving force behind the economic success of the state’s key industries is its loyal, highly qualified workforce. From premium automobiles to wide-body airliners, the people of South Carolina have proven themselves exceptionally good at manufacturing advanced, extremely complex products.

To continue to ensure a high quality workforce, a team of Regional Workforce Advisors (RWAs) works to connect businesses and educational institutions to meet industry’s labor needs.

INCOME TAX IN SOUTH CAROLINA

South Carolina charges an income tax of 0-7% depending on income. In addition, federal income taxes are payable.

CORPORATE INCOME TAX IN SOUTH CAROLINA

South Carolina has a 5% corporate income tax. In addition, federal corporation tax is payable.

SOUTH CAROLINA SALES TAX

There is no sales tax or Value Added Tax (VAT) in the USA based on the European model. Instead, in the United States, states, counties, and municipalities levy a local sales tax on the sale of products (but not services).

Sales Tax Rate in South Carolina

The sales tax in South Carolina is 6% at the state level. Municipalities or counties charge an average of 1.46% sales tax. Combined, an average of 7.46% is due.

South Carolina Nexus Laws & Sales Tax

Learn more about the Economic Nexus Laws in the context of Sales Tax here.

Effective Date

November 1, 2018

Transactions included:

Gross proceeds from the sale of tangible personal property, electronically transmitted products, or services delivered into the US state

Treatment of tax-exempt transactions:

Exempt Sales and Exempt Services are included in the threshold

Reason:

Sale only

Sales/Transactions Threshold:

$100,000

Evaluation period:

The threshold applies to the previous or current calendar year

Extra information:

  • Registration Requirements: Remote businesses that cross the economic nexus threshold on or after October 1, 2018 are eligible for remittance of sales and use tax on all taxable sales to South Carolina beginning on the first day of the second calendar month after the economic nexus is established nexus responsible. See SC Revenue Ruling #18-14for more information.
  • Sales and Use Tax for Remote Sellers
  • Frequently asked questions about remote sellers

South Carolina Marketplace Sellers & Sales Tax

Learn more about Marketplace seller registration requirements

Effective date by the marketplace broker:

April 26, 2019

Economic Nexus Threshold:

More than $100,000 in sales in South Carolina in the current or previous calendar year. Remote sellers should include sales through a marketplace in the calculation of the threshold. Marketplace intermediaries include all taxable sales made through the marketplace when calculating the threshold.

Registration requirements:

  • Remote Multichannel Sellers: You must register with the South Carolina Department of Revenue (DOR) and collect South Carolina sales tax on sales that are not taxed by a Marketplace Agent once you have crossed the Economic Nexus Threshold.
    • You can exclude sales that were taxed by a marketplace intermediary from your tax returns.
  • Remote Marketplace Vendors: No need to register even if you cross the Economic Nexus Threshold. Contact the South Carolina DOR for more information.
  • In-State Multichannel Sellers: You must register with the South Carolina DOR and collect taxes on sales that are not taxed by a marketplace facilitator.
    • You can exclude sales that were taxed by a marketplace intermediary from your tax returns.
  • State Marketplace Sellers: You must register. Contact the South Carolina DOR for more information.