Business Licensing

Any business physically located within the Town of Six Mile is required to have a business license. Additionally, any business that is located outside of the Town of Six Mile but comes into the Town to do business is also required to have a business license. If you are opening a new business, buying an existing business, or transferring a business to your ownership, you will need a new business license under your name.

Does your entity (person, partnership, organization, or business): (Yes or No)

• sell items to the public?
• earn over $1,000 in gross revenue per year within the Town limits?
• claim office deductions or business expenses for a commercial or a residential location?
• use advertisements or business cards using an address based in the Town of Six Mile?
• have a business checking account?
• have an Employer Identification Number from the IRS?
• have any other professional or occupational state license regulated by South Carolina Labor, Licensing, and Regulation (for example: architects, contractors, cosmetologists, engineers, physicians, therapists, etc.)?
• operate, manage, or have control of the entity?
• receive compensation as an independent contractor and / or a form 1099 for work?
• own and / or lease property to other businesses or individuals?
• operate any of the following within the Town limits: 1-4 family residential rentals, multi-family rentals, or nightly lodging rentals? (NOTE: This excludes one parental home rental.)
• occupy a commercial space that is used for an office?
• have a physical location outside of the Town of Six Mile and perform work on or provide services as a part of a construction project within the Town limits?

If you have answered YES to any item listed, then a business license is required. The Town of Six Mile requires all businesses operating within the Town limits to obtain a business license and to pay a business license tax. This requirement ensures that businesses operating in the Town of Six Mile comply with local and state regulations.

If you have marked NO to all items listed, then a business license is not required.

Please Note: Tax-exempt organizations may be exempt from license requirements. Please provide proof of exemption.

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

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.

The NAICS Code is a classification within the North American Industry Classification System. The NAICS System was developed for use by Federal Statistical Agencies for the collection, analysis, and publication of statistical data related to the U.S. Economy.

Note: Your NAICS Code can be found at the top of your federal tax return. Look for the Business Activity Code Number on the tax application. You must know your NAICS Code, as reported to the IRS, so that you will be placed in the correct city rate class.

Resident businesses are businesses that are physically located inside the Town of Six Mile 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 Town of Six Mile 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.

Business licenses are valid from May 1 to April 30 each year. Businesses are required to renew their licenses at the beginning of every year based on prior calendar year gross revenue (January through December). Licenses must be renewed by April 30 each year to avoid penalties that are effective May 1.

Any W-2 employee can operate under your business license.

Any 1099 employee or subcontractor must have their own separate business license. This would include booth renters, 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.

You need to make sure you have all proper state licenses (contractor, specialty, ABC, retail licenses, etc.), and all required permits must be paid prior to applying for a Town of Six Mile business license.

All resident businesses must have for a Certificate of Occupancy in order to obtain a business license.

For new businesses: The business license fee is calculated based on gross revenue and the type of business. Our staff will be glad to assist you in determining your specific classification and resulting fee.

For renewals: If you know your NAICS code and total gross revenue, you may also go to the Local Business Licensing Renewal website and use their calculator.

A Business License fee enables essential services such as street and sidewalk maintenance, parks and recreation programs, and town events. We choose to support our resident businesses by listing them in our business directory on our website.

Funding from this fee ensures quality service to the residents and business owners located in the Town 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 Town of Six Mile.

The penalty for late payment is determined by the date payment is made.

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.

For renewals, penalties start on May 1st. To avoid penalties, renewal payments must be received on or before April 30th.

Penalties are as follows: $25 administrative processing fee and a 15% penalty for the first month of delinquency. An additional 5% penalty will be applied for each subsequent month (or portion thereof) until all outstanding fees and penalties are paid in full. 

Per Town ordinance, and in compliance with the equal protection clauses of the South Carolina and United States constitutions, the Town is not permitted to waive penalties under any circumstance.