When you decide to start your business, location is a key consideration. There are many decisions to make, from what business structure you’ll operate under to the products and services you’ll offer.
Starting a business comes with considerable start-up expenses. You’ll need to order inventory, pay yourself and employees and develop marketing to attract customers.
Finances are front and center for most new businesses. That’s why determining where to start your business is so essential.
For many entrepreneurs, South Carolina is a great choice. South Carolina offers favorable tax laws and incentives, a competitive labor market and low start-up costs.
Among the advantages of starting a business in South Carolina:
- Tax Advantages. There is no property tax, local income tax, inventory tax, wholesale tax or sales taxes on manufacturing machinery or materials for finished products. There’s also a favorable corporate tax apparatus
- Location and Infrastructure. South Carolina’s East Coast location means it’s close to key hubs, airports, ports and interstates. The warm climate means that business doesn’t slow down in the winter. There’s easy rail access and five interstate highways
- Talented, Affordable Workforce. The state has several workforce development programs to train and retrain workers for in-demand jobs.
- Incentives. There are multiple business incentives beyond favorable tax scenarios. These incentives include rewards for jobs creation, corporate headquarters siting, investment and research and development tax credits, and energy conservation and alternative fuel investments
- Low Cost of Living. South Carolina has a low cost of living, meaning you and your workers will pay reasonable prices on housing and day-to-day expenses. While inflation is hitting every area hard, a lower cost basis means your money still goes farther in South Carolina
The decision on business structure is an important one. Many business owners choose to organize as a limited liability company (LLC), which has considerable tax benefits and liability protections for property owners.
There are other options, such as sole proprietorship, partnership or establishing a corporation. However, the LLC option is popular because it offers the advantages of tax flexibility and significant protection from creditors or judgments against the company.
There are some disadvantages of starting a business in South Carolina. It can take longer to compete the business entity process, for example. In addition, like with any new business, you’ll be looking at long hours, uncertainty, financial vulnerability and taking on many roles.
Best Cities in South Carolina for Starting a Business
The Palmetto State offers many options for where to start your business. You can choose from some of the most beautiful locations with great advantages and opportunities.
Some of the best locations are the largest communities in the state. Others are smaller but near top tourist destinations.
Here is a look at the top 6 locations for starting your business in South Carolina.
1. Charleston
Charleston was recently named one of the top 20 most ambitious and business-savvy cities in the nation and the top in South Carolina. The ranking by Go.verizon.com rated cities based on their business ambition and successful risk-taking among business people.
The analysis looked at multiple factors, based on data from the U.S. Census Bureau. The factors include educational status, mean income, business applications in the past year, unemployment rate and the population percentage that started a business in 2021.
Charleston is the largest city in South Carolina and a popular tourist attraction and full of rich history replete with cobblestone streets and antebellum homes. It has a population of just over 150,000, while the greater metropolitan area has about 800,000 residents.
The downtown area of Charleston, called The Peninsula, is nestled between two rivers, the Ashley and the Cooper.
It’s also a popular technology hub, and is often known as Silicon Harbor, with more than 250 tech companies calling Charleston home.
There are two shipping terminals in Charleston, often used to ship and receive cars and auto parts for the city’s auto manufacturing business.
2. Greenville
Greenville has a long manufacturing history and had long been known as The Textile Capital of the World. It still is home to world or North American headquarters for major companies in manufacturing, banking and technology.
Greenville is the seat of Greenville County and has a population of 70,720. It is known as the center of the state’s Upstate region, home to nearly 1.5 million people and one of the largest urban centers in the south.
Greenville boasts a large airport, the Greenville-Spartanburg International Airport and an Amtrak station. It is located in the Interstate 85 corridor, roughly halfway between Atlanta and Charlotte.
Greenville was once home to the Donaldson Air Force Base. Since it closed in 1963, the space has been reimagined. Today, it houses the Donaldson Center Airport and the South Carolina Technology and Aviation Center, which houses an aircraft and logistics center for Lockheed Martin and facilities for Honeywell and 3M.
In the past 20 years, two major hubs have opened in Greenville, both attracting research and leading-edge technology firms. The International Center for Automotive Research opened in 2003 and the Center for Emerging Technologies, which focuses on mobility and energy, launched in 2011.
3. Seneca
Seneca has seen tremendous job growth in recent years while enjoying a low unemployment rate and increases in both median income and business revenue.
In the past decade, Seneca was named by NerdWallet as the best place to start a business in South Carolina. NerdWallet based the ranking on costs related to business operations, median annual income, unemployment rates and average business revenue.
Seneca is part of Oconee County. It has a population of 8,100, while the greater metropolitan statistical area has 74,000 residents.
Seneca has been named one of the best communities for retirees and has an abundance of natural beauty. As the county’s largest community, Seneca sits on the shores of both Lake Keowee and Lake Hartwell.
The Seneca Historic District is full of walkable streets, small businesses and frequent street parties.
4. Myrtle Beach
Whether your business is tourism-related or you just want to work close to pristine, white, sandy beaches, Myrtle Beach is an ideal location.
This resort city on South Carolina’s coast is in the middle of a 60-mile stretch of beaches, known as the Grand Strand. It is one of the state’s and country’s major tourism centers. Myrtle Beach attracts more than 20 million visitors every year and features 86 golf courses and more than 1,800 restaurants.
The Myrtle Beach metropolitan area is one of the fastest-growing areas in the country. According to the 2020 U.S. Census, the population is 551,000, which represents growth of 28 percent over the previous 8 years.
Tourism is the primary business in Myrtle Beach and the Grand Strand. It’s home to many conventions, concerts and special events. There are about 425 hotels in Myrtle Beach alone, many right on the beach.
From an infrastructure perspective, there’s an international airport and several rail lines, used primarily for freight. In the past decade, several roads have opened to ease significant congestion in the Myrtle Beach area.
5. Beaufort
Beaufort is a historic city that provides excellent access to the resort and tourism centers of Hilton Head Island, Bluffton and Savannah, Georgia. There’s good access to Savannah’s airport and major container port.
Beaufort is the second-oldest city in the state and home to 13,607. It’s located on Port Royal Island
The economy focuses largely on tourism and support services. There’s also a significant military presence, with a marine air station and proximity to Parris Island and a naval hospital. The bases, with thousands of jobs, provide a key source of revenue for area companies. The military presence means that economic downturns do not hut Beaufort as hard as other areas.
Hospitality is a major industry in the region, which is filled with high-end accommodations, inns and dining establishments.
The Downtown Marina is Beaufort’s gateway to the Sea Islands and Intracoastal Waterway. There’s also a small county airport three miles out of Beaufort and Greyhound bus service.
6. Greer
Greer is located in both Greenville and Spartanburg counties. Its major industry is the largest BMW manufacturing facility in North America, employing 9,000. The plant draws on local and statewide suppliers and has added greatly to the local economy.
Greer has a population of 35,000 and is home to the South Carolina Inland Port, used to send and receive containers via rail.
Greer is also home to major hospitals, including the 82-bed Greer Memorial Hospital and 48-bed Pelham Medical Center. It’s also home to the Gibbs Cancer Center and Research Institute at Pelham, which was one of the first cancer centers in the United States and provides comprehensive oncology services.
Greer is adjacent to the Greenville-Spartanburg International Airport and near Amtrak stations in both Grenville and Spartanburg.
Starting an LLC business in South Carolina offers major benefits. The low tax burden, warm climate and East Coast location provide opportunities for any entrepreneur.
One of the major advantages to starting a business in South Carolina is the diverse number of locations that offer unique advantages and benefits for any new business.