As a business owner in South Carolina, understanding the state’s sales tax system is crucial to maintaining compliance and avoiding potential penalties. Whether you’re a local retailer, a service provider, or both, having a solid grasp of South Carolina’s sales tax rules will help you make informed decisions and keep your business running smoothly.

At Peavy and Associates, we work with South Carolina entrepreneurs to navigate the complexities of local tax systems. Here’s what you need to know about South Carolina’s sales tax regulations, including who must collect sales tax, which products and services are taxable, and how to properly manage your sales tax responsibilities.

What Is Sales Tax in South Carolina?

Sales tax in South Carolina is a tax imposed on the sale of tangible personal property and certain services. As a retailer or service provider, you are responsible for collecting and remitting this tax to the South Carolina Department of Revenue (SCDOR). The state’s sales tax rate is 6%, but local municipalities may impose additional local taxes, raising the overall rate depending on where you’re located.

For example, in cities like Charleston or Columbia, the total sales tax rate can exceed 8%, including state, county, and local tax rates.

Who Needs to Collect Sales Tax?

Generally, any business engaged in the sale of tangible personal property, certain services, or digital goods is required to collect sales tax in South Carolina. Here’s a breakdown:

• Retailers: If your business sells goods or products, such as clothing, electronics, furniture, or other tangible items, you’re likely required to collect sales tax.
• Service Providers: Certain services in South Carolina are subject to sales tax, including:

◘  Admission to entertainment events

◘ Certain repair and installation services

◘ Personal services (e.g., fitness or beauty services)

◘ Digital products, such as downloadable software or digital music

• However, some services, like professional services (accounting, legal, etc.), are generally not taxable in South Carolina.

Taxable and Exempt Goods and Services

Knowing which products and services are taxable is essential for your business. Here’s a breakdown:

Taxable Goods:

• Tangible personal property, including merchandise, furniture, electronics, and clothing
• Prepared food and beverages sold at restaurants
• Digital products, such as software, e-books, and movies for download

Exempt Goods:

• Groceries (subject to certain conditions)
• Prescription medications
• Some agricultural products
• Certain types of clothing (e.g., back-to-school exemptions)

Taxable Services:

• Repair and maintenance services (e.g., auto repair, appliance repair)
• Admission to events (e.g., concerts, sports events)
• Cleaning services (e.g., dry cleaning)

Exempt Services:

• Professional services such as accounting, law, and medical services
• Education services (e.g., private tutoring)

It’s important to stay updated on changes to what is and isn’t taxable. South Carolina’s tax system can evolve, and occasional adjustments are made to exempt certain items or services from sales tax.

How to Collect and Remit Sales Tax

Once you understand your obligations, the next step is collecting and remitting sales tax. Here’s what you need to do:

1. Register for a Sales Tax Permit:

Before collecting sales tax, you must obtain a sales tax permit from the South Carolina Department of Revenue (SCDOR). This is required for any business selling taxable products or services.

2. Collect Sales Tax at the Point of Sale:

Sales tax must be collected from customers at the time of the sale. The tax rate depends on where the sale occurs, so it’s important to be familiar with both state and local tax rates in your area.

3. File Sales Tax Returns:

After collecting sales tax, your business is required to file regular sales tax returns with SCDOR. Returns are typically filed monthly, quarterly, or annually, depending on the volume of your sales.

4. Remit Collected Tax:

The collected tax must be submitted to SCDOR on time. Failure to remit sales tax can result in fines, interest, and other penalties.

Sales Tax Reporting Deadlines

The frequency of your sales tax filings depends on your business’s gross receipts and how much sales tax you collect. Here are the general filing requirements:

• Monthly: If your business collects more than $200 in state sales tax per month, you must file monthly.
• Quarterly: If your business collects between $100 and $200 in state sales tax per month, you’ll file quarterly.
• Annually: If your business collects less than $100 in state sales tax per month, you may be eligible to file annually.

Keep Detailed Records

To comply with South Carolina’s sales tax regulations, it’s critical to maintain detailed records of your sales transactions, tax collected, and tax remitted. This documentation will help you during tax audits and ensure you are paying the correct amount of sales tax.

Work with a Professional to Stay Compliant

Sales tax can be complex, especially for businesses with multiple product lines or service offerings. At Peavy and Associates, we can help you understand South Carolina’s sales tax system, ensure you’re collecting and remitting the correct amount, and help you avoid costly errors.

If you have any questions about your sales tax obligations or need assistance filing your sales tax returns, don’t hesitate to contact us today.

If you’re a small business owner or entrepreneur in South Carolina, choosing the right business structure is one of the most important decisions you’ll make. Among the many options available, the S-Corporation—commonly referred to as an S-Corp—is a popular choice for those looking to save on taxes and streamline operations.

But is an S-Corp right for your business? At Peavy and Associates, we work with entrepreneurs throughout South Carolina to evaluate entity structures and optimize tax strategies. Here’s what you should know before making the switch.

What Is an S-Corp?

An S-Corp is not a type of business entity in itself but a special tax election made with the IRS. It allows eligible corporations or limited liability companies (LLCs) to pass their income, losses, deductions, and credits through to shareholders for federal tax purposes. In simpler terms, it avoids the double taxation associated with traditional corporations (C-Corps) while providing more favorable treatment than a sole proprietorship or standard LLC in certain cases.

Key Benefits of an S-Corp

 1. Tax Savings on Self-Employment Income
One of the most attractive features of an S-Corp is the potential to save on self-employment taxes. As an S-Corp owner, you can pay yourself a reasonable salary   (which is subject to payroll taxes) and take the remaining profits as distributions, which are not subject to self-employment tax.

2. Pass-Through Taxation
Unlike a C-Corp, an S-Corp is not taxed at the corporate level. Instead, profits and losses are passed through to the owner’s personal tax return, avoiding double taxation.

3. Liability Protection

Like other corporate structures, an S-Corp provides limited liability protection. This means your personal assets are generally protected from business debts and legal actions.

4. Credibility and Professional Image

Operating as an S-Corp can give your business added credibility with clients, vendors, and lenders by signaling a more formal structure.

Potential Drawbacks of an S-Corp

While S-Corps offer several advantages, they’re not ideal for every business. Some limitations include:

• Ownership Restrictions
  S-Corps are limited to 100 shareholders, all of whom must be U.S. citizens or residents. Certain entities, such as partnerships and corporations, cannot be shareholders.
• Strict IRS Compliance
  S-Corps must follow strict operational requirements, including issuing stock, holding shareholder meetings, and maintaining formal records.
• Reasonable Compensation Requirement
  The IRS requires S-Corp owners who work in the business to receive a reasonable salary. If you underpay yourself and take the rest in distributions to avoid payroll taxes, it could trigger an audit and penalties.

Is an S-Corp Right for Your South Carolina Business?

The S-Corp structure can be a smart move for South Carolina entrepreneurs who:

• Are currently sole proprietors or LLCs with increasing profits
• Want to reduce self-employment tax liability
• Don’t plan to take on non-resident or foreign shareholders
• Are ready to meet the compliance and reporting requirements

However, it’s not a one-size-fits-all solution. Factors such as the nature of your business, income level, number of owners, and long-term goals should all be considered before making the switch.

Let Peavy and Associates Guide You

Deciding on the right business structure is a strategic choice with long-term consequences. At Peavy and Associates, we help entrepreneurs throughout South Carolina understand their options, weigh the tax implications, and make the best decision for their financial future.

If you’re wondering whether an S-Corp is right for you, contact our office today to schedule a consultation. We’ll take the guesswork out of the process and help you build a structure that supports your success.

As the midpoint of the year approaches, it’s the perfect time for South Carolina business owners to pause and evaluate their financial performance. A mid-year financial review is more than just a check-in—it’s an opportunity to assess progress, uncover inefficiencies, and adjust course before year-end.

At Peavy and Associates, we help businesses across South Carolina make informed decisions based on accurate financial data. Here’s how you can prepare for a productive and meaningful mid-year financial review.

Update Your Financial Records

The first step in any review is making sure your books are up to date. Ensure that all income, expenses, bank reconciliations, payroll entries, and tax filings are properly recorded through the first half of the year. Clean and current records provide the foundation for any financial analysis.

If you’re behind on bookkeeping or unsure about your records, our accounting team can help bring everything current and accurate.

Review Your Profit and Loss Statement

Your profit and loss statement (P&L) tells the story of your business’s financial health. During a mid-year review, compare this year’s numbers to the same period last year to spot growth, stagnation, or decline. Identify where revenue is strong, where costs may be rising, and which areas are underperforming.

Ask yourself whether your current margins align with your goals and whether your expenses are truly supporting business growth.

Evaluate Your Cash Flow

Cash flow is often more critical than profits when it comes to daily operations. A business can be profitable on paper but still face cash shortages. Analyze your cash inflows and outflows to determine if you have enough liquidity to meet upcoming expenses, invest in new opportunities, or cover unexpected costs.

We recommend preparing a cash flow forecast for the remainder of the year to anticipate potential shortfalls and plan accordingly.

Check Budget vs. Actual Performance

If you created a budget at the start of the year, now is the time to compare your actual results against those projections. Identify variances and explore the reasons behind them. Were sales lower than expected? Did marketing costs run over? Understanding these gaps helps refine your approach for the next six months.

If you don’t yet have a budget in place, consider creating one now to guide your spending and strategy for the rest of the year.

Assess Tax Position and Estimated Payments

A mid-year review is an ideal time to check your current tax situation. Based on your earnings so far, you may need to adjust your estimated quarterly tax payments to avoid underpayment penalties or surprises come tax season.

Peavy and Associates can help you project your year-end tax liability and suggest adjustments to your payments or tax strategy.

Revisit Business Goals and KPIs

Financial reviews should be tied to your overall business goals. Are you meeting your sales targets? Has customer retention improved? Are new initiatives producing a return on investment? Tracking key performance indicators (KPIs) alongside your financial data gives a more complete picture of how your business is truly performing.

If necessary, refine your goals or shift your focus to ensure that your business stays on track.

Plan for the Remainder of the Year

Use the insights from your review to guide strategic decisions for the rest of the year. Consider hiring needs, equipment purchases, marketing efforts, or financing options. A mid-year review is your chance to be proactive rather than reactive.

Partner with a Trusted Advisor

Peavy and Associates offers comprehensive mid-year financial review services for South Carolina businesses. Whether you’re a solo entrepreneur or managing a growing team, we’ll help you uncover opportunities, mitigate risks, and make confident decisions.

Schedule a mid-year review with us today and take control of your business’s financial direction.

Tax season may be over, but your financial responsibilities don’t stop there. At Peavy and Associates, we believe the time immediately after filing is one of the most important periods for thoughtful planning. Whether you’re an individual taxpayer or a business owner in South Carolina, taking a few simple steps now can save time, reduce stress, and put you in a better position for next year.

Here’s your essential post-tax season checklist.

1. Review Your Return for Accuracy and Opportunities

Even if your taxes have already been filed and accepted, it’s worth taking a second look. Review your return with your accountant to ensure everything was reported correctly. This is also a good opportunity to identify potential tax-saving strategies for the year ahead, such as adjusting your withholdings or increasing retirement contributions.

2. Organize and Store Your Tax Documents

Keep copies of your filed return and all supporting documents in a safe and secure location. This includes W-2s, 1099s, receipts for deductions, and any other relevant paperwork. You may need these documents for future reference, audits, or loan applications. At Peavy and Associates, we recommend maintaining digital backups in addition to physical copies.

3. Adjust Withholding or Estimated Payments

If you owed more than expected or received a large refund, it might be time to adjust your paycheck withholdings or quarterly estimated tax payments. The goal is to avoid surprises at tax time and better manage your cash flow throughout the year. Our team can help you recalibrate your numbers based on your current financial situation.

4. Plan for Next Year’s Deductions

Now is a great time to start organizing your finances with next year in mind. Think about charitable donations, home improvements, education expenses, or business investments you may want to make in the coming months. Documenting these as you go will make next year’s filing process smoother and more accurate.

5. Schedule a Mid-Year Tax Planning Session

Waiting until the end of the year to address your tax strategy can limit your options. A mid-year tax planning session with Peavy and Associates allows us to evaluate your current income, deductions, and goals—helping you make proactive decisions before the year is over.

6. Consider Retirement Contributions

If you haven’t yet maxed out your contributions to retirement accounts like an IRA, 401(k), or SEP IRA, now is a good time to revisit your plans. Increasing your contributions not only helps secure your future but can also provide meaningful tax benefits.

7. Stay Alert for IRS Correspondence

Even if everything went smoothly, keep an eye out for any mail from the IRS. Occasionally, the IRS may follow up with questions or notices related to your return. Don’t panic—just reach out to your accountant right away to review and respond appropriately.

Let Peavy and Associates Help You Stay Ahead

Tax filing may be complete, but smart financial management is a year-round effort. At Peavy and Associates, we’re here to help you plan ahead, make informed decisions, and keep your financial life on track long after April 15.

Contact us today to schedule a post-tax season review or mid-year planning session. We proudly serve individuals and businesses across South Carolina with trusted, personalized accounting support.

Tax season can be hectic, and sometimes life doesn’t go according to schedule. If you’re not quite ready to file your tax return by the April deadline, the IRS allows you to request an extension. While a tax extension can offer some breathing room, it’s important to understand what it does—and what it doesn’t—do.
Here’s a simple breakdown of how to file for a tax extension and what it really means for your tax obligations.

What Is a Tax Extension?

A tax extension gives you an additional six months to file your federal income tax return. For most taxpayers, that means the deadline moves from April 15 to October 15. However, an extension to file is not an extension to pay. If you owe taxes, the IRS still expects payment by the original April deadline.

Why File an Extension?

There are several valid reasons why individuals or businesses may need more time to file:

• You’re waiting on important tax documents or corrected forms
• You need additional time to organize complex finances
• You’ve experienced a personal hardship or emergency
• You want to ensure accuracy and avoid errors that could lead to an audit

Whatever the reason, filing for an extension is better than rushing and making mistakes—or worse, missing the deadline entirely.

How to File for a Tax Extension

Filing for an extension is relatively simple, and you have a few options:

1. File IRS Form 4868

Form 4868 is the official request for an automatic extension for individual taxpayers. You can file it electronically through tax software, your tax professional, or by mailing a paper copy to the IRS.

To complete the form, you’ll need to:

• Estimate your total tax liability for the year
• Report how much you’ve already paid
• Indicate the balance due (if any)

Even if you can’t pay in full, submitting this form by the deadline avoids the late-filing penalty.

2. Make a Payment with Extension Request

If you make a payment to the IRS using Direct Pay or through the Electronic Federal Tax Payment System (EFTPS), and designate it as an extension payment, the IRS will automatically treat it as a request for extension—no separate form required.

3. Businesses File Form 7004

If you’re filing a business return and need an extension, use Form 7004. This applies to partnerships, corporations, and other business entities.

What Happens After You File an Extension?

Once your extension is accepted, you’ll have until October 15 to submit your complete return. During this time, you can gather any missing documents, consult with your CPA, and make sure everything is filed correctly.

However, interest and penalties will still accrue on any unpaid taxes after the original deadline. That’s why it’s always recommended to pay as much as you can by April 15—even if you’re filing for an extension.

What If You Don’t File or Pay?

Failing to file your return or request an extension by the deadline can lead to:

• A failure-to-file penalty (typically 5% per month on unpaid taxes)
• A failure-to-pay penalty (0.5% per month)
• Accruing interest on the unpaid balance

These penalties can add up quickly, so it’s better to file for an extension and pay something rather than miss the deadline entirely.

Need Help Filing an Extension?

If you’re unsure how much you owe, need help submitting the proper forms, or simply want peace of mind that everything is handled correctly, working with a CPA can make the process smoother. We help individuals and businesses navigate tax deadlines, extensions, and everything in between.
Contact our office today to discuss your situation. Whether you need to file now or need more time, we’re here to guide you through every step.

As the tax deadline approaches, many individuals and businesses find themselves scrambling to file on time. While filing under pressure can be stressful, rushing through your return often leads to costly mistakes. Whether you’re filing at the last minute or trying to catch up, it’s important to slow down just enough to avoid common errors that could trigger delays, audits, or penalties.

Here are some of the most frequent tax filing mistakes—and how to avoid them.

1. Incorrect or Missing Personal Information

One of the simplest yet most common mistakes is entering incorrect Social Security numbers, misspelling names, or forgetting to include a spouse or dependent’s information. Double-check all personal details before submitting your return. Even small typos can cause major issues.

2. Choosing the Wrong Filing Status

Your filing status affects your tax bracket, deductions, and credits. Selecting the wrong status—such as “Single” instead of “Head of Household”—can result in overpaying or underpaying taxes. If you’re unsure which status applies to you, a CPA can help determine the most beneficial option.

3. Math Errors

Manual calculations or incorrect input in tax software can lead to math errors. These mistakes are often flagged by the IRS, resulting in delayed refunds or notices. If you’re filing on your own, use reliable tax software with built-in error checks, or have a CPA review your return before submitting.

4. Forgetting to Report All Income

It’s essential to report all sources of income, including wages, freelance work, investment earnings, and side gigs. The IRS receives copies of your W-2s, 1099s, and other income documents—so if you leave something out, it won’t go unnoticed.

5. Overlooking Deductions and Credits

When you’re rushing, it’s easy to miss valuable deductions and credits, such as the Earned Income Tax Credit (EITC), Child Tax Credit, or deductions for student loan interest and charitable contributions. Take time to review what you’re eligible for, or work with a tax professional to ensure nothing is left on the table.

6. Missing Signatures

A missing signature is an automatic rejection for paper-filed returns. If you’re filing jointly, both spouses must sign. If you’re e-filing, make sure to follow all authentication steps to finalize your submission.

7. Using the Wrong Bank Information for Direct Deposit

Mistyping your routing or account number can delay your refund or even send it to the wrong account. Double-check this information before submitting your return. If you’ve changed bank accounts recently, make sure your current details are on file.

8. Failing to File State Taxes

While rushing to meet federal deadlines, many filers forget about their state obligations. Each state has its own filing requirements, deadlines, and forms. Make sure you understand and meet both state and federal filing responsibilities.

9. Not Filing at All

Some taxpayers mistakenly believe they don’t need to file if they can’t pay. This is one of the biggest mistakes you can make. Filing late is always better than not filing at all, and the IRS offers payment plans to help with owed balances.

10. Ignoring IRS Notices

If you make a mistake and receive a notice from the IRS, don’t ignore it. Responding promptly can help you avoid additional penalties and complications. A CPA can assist in interpreting notices and communicating with the IRS on your behalf.

Filing in a Rush? Let a CPA Help

Filing taxes quickly doesn’t have to mean filing carelessly. At our firm, we help clients file accurately and on time—even under pressure. If you’re feeling overwhelmed or worried about mistakes, we’re here to make the process smooth, stress-free, and compliant.

Contact us today to file with confidence and avoid unnecessary headaches.

Missing the tax filing deadline can be stressful, but it’s not the end of the world. Whether you forgot, ran out of time, or encountered unexpected challenges, there are steps you can take to minimize penalties and get back on track. Here’s what you need to know if you didn’t file your tax return by the deadline.

1. Don’t Wait Any Longer

The worst thing you can do after missing the deadline is continue to delay. The longer you wait to file, the more penalties and interest you may owe. Even if you can’t pay your full tax bill right now, filing as soon as possible helps limit the damage.

2. File Your Return Immediately

If you’re owed a refund, there’s no penalty for filing late—but you must file within three years to claim it. If you owe taxes, the IRS will begin charging penalties and interest after the due date. Filing your return now, even if it’s late, shows the IRS that you’re taking steps to resolve the issue.

3. Understand the Penalties

There are two main penalties for missing the tax deadline:

• Failure-to-File Penalty: This is typically 5% of the unpaid taxes for each month your return is late, up to a maximum of 25%.
• Failure-to-Pay Penalty: This is 0.5% of your unpaid taxes for each month you fail to pay, also up to 25%.

If both apply in the same month, the failure-to-file penalty is reduced by the failure-to-pay penalty amount.

4. Pay What You Can

Even if you can’t pay the full amount you owe, pay as much as possible when you file. This will reduce the amount of interest and penalties that accumulate over time. The IRS offers various payment plans, including short-term and long-term options, to help taxpayers settle their balances.

5. File for an Extension (If You Qualify)

Unfortunately, you can’t retroactively file for an extension after the deadline has passed. However, if there were exceptional circumstances—such as a natural disaster or serious illness—you may qualify for penalty relief. A CPA can help you determine if you’re eligible and assist with the proper documentation.

6. Watch Out for Scams

If you’ve missed the deadline, you may be feeling pressure to resolve your tax situation quickly. Be cautious of fraudulent “tax relief” companies that promise to settle your tax debt for pennies on the dollar. Always work with a reputable CPA or tax professional who can guide you through the process safely and accurately.

7. Plan Ahead for Next Year

Missing a deadline can be a wake-up call. Start organizing your tax documents early, track your income and expenses throughout the year, and consult with a CPA well before tax season arrives. Proactive planning can help you avoid the same stress next year.

Need Help Catching Up?

If you’ve missed the tax deadline, our team is here to help you file late returns, minimize penalties, and create a plan to move forward. We understand that life happens—and we’re here to provide judgment-free, professional guidance every step of the way.

Contact us today to get started and regain control of your tax situation.

The tax filing deadline is quickly approaching, and if you’ve been putting off the inevitable, you’re not alone. Every year, thousands of individuals and business owners find themselves scrambling to file their taxes just days—or even hours—before the deadline. The good news? It’s not too late to get organized and file on time. Here are some last-minute tax filing tips from our team of CPAs to help you meet the deadline and avoid unnecessary penalties.

1. Gather All Necessary Documents

Start by collecting all your income documents, including W-2s, 1099s, investment statements, and any records of other earnings. You’ll also want to gather receipts for deductible expenses, mortgage interest statements, and proof of charitable contributions. Having everything in one place reduces errors and saves time.

2. Double-Check Personal Information

A common and easily avoidable mistake is submitting incorrect personal information. Ensure that your name, Social Security number, and banking details are accurate. If you’re claiming dependents, make sure their information is correct and hasn’t already been used on someone else’s return.

3. File Electronically for Speed and Accuracy

E-filing is the fastest and most accurate way to file your taxes, especially when you’re in a rush. Most reputable tax software includes built-in error checks that help catch mistakes before you submit. Plus, you’ll receive a quicker confirmation from the IRS, and if you’re owed a refund, it’ll be processed faster with direct deposit.

4. Consider Filing for an Extension

If you know you won’t make the deadline, consider filing for an automatic extension using IRS Form 4868. This gives you an additional six months to submit your return, but it’s important to note that it doesn’t give you more time to pay any taxes owed. You must still estimate and pay your tax liability by the April deadline to avoid penalties and interest.

5. Don’t Guess Your Numbers

In a rush, it can be tempting to estimate income or deductions. Avoid this. Guessing can trigger audits, delays, or fines. If you’re missing documentation, do your best to retrieve it or consult a CPA who can help you navigate missing forms and suggest appropriate next steps.

6. Review Before Submitting

Even if you’re on a tight timeline, take a few minutes to review your return for any missed deductions or errors. Typos, incorrect calculations, and overlooked credits can cost you money or cause delays in processing. A second set of eyes, especially from a CPA, can make a big difference.

7. Don’t Forget State Taxes

While focusing on federal taxes, many filers forget that their state may have its own deadline and filing requirements. Make sure you check your state’s tax website or speak with a tax professional to ensure you’re compliant on all fronts.

Let a CPA Help You Cross the Finish Line

When time is limited, having a certified public accountant on your side can make all the difference. We can help you file quickly, accurately, and efficiently—giving you peace of mind and minimizing your stress.

If you’re feeling overwhelmed as the deadline looms, reach out to our team today. Whether you’re filing for yourself or for your business, we’re here to help make tax season less taxing.

Understanding the value of a business is crucial for owners, investors, and stakeholders. Whether you’re planning to sell your business, attract investors, or navigate a legal dispute, an accurate business valuation is essential. This is where a Certified Public Accountant (CPA) plays a vital role.

At Peavy and Associates, our CPAs bring financial expertise and industry knowledge to provide precise business valuations. In this blog, we’ll explore the importance of business valuation, the role of a CPA in the process, and how it can impact your financial decisions.

1. What is Business Valuation?

Business valuation is the process of determining the economic worth of a business or company unit. It involves analyzing financial statements, assets, liabilities, market conditions, and future earning potential.

A proper business valuation is essential for:

✅ Selling or acquiring a business
✅ Mergers and acquisitions
✅ Securing financing or investment
✅ Estate and succession planning
✅ Tax and legal compliance

2. Why Business Valuation Matters

A well-supported business valuation helps businesses make informed decisions in critical situations. It is often required for:

✅ Business Sales & Acquisitions

If you’re selling your business, an accurate valuation ensures you receive a fair market price. Buyers, on the other hand, rely on valuations to determine whether an acquisition is a good investment.

✅ Securing Loans & Investments

Banks and investors often require a formal business valuation before offering loans or investment capital. A CPA-backed valuation provides credibility and transparency to lenders and potential investors.

✅ Mergers & Partnerships

When two companies merge or a new partner joins a business, a valuation is necessary to determine ownership percentages and share values. This prevents disputes and ensures fair negotiations.

✅ Tax & Estate Planning

Business valuations play a key role in estate planning, gift taxes, and succession planning. The IRS often requires an independent valuation to determine tax obligations on business assets.

✅ Litigation & Divorce Settlements

In cases of divorce, shareholder disputes, or lawsuits, business valuations provide an objective financial assessment that courts and attorneys use to settle claims.

3. The CPA’s Role in Business Valuation

A Certified Public Accountant (CPA) brings financial expertise, industry experience, and regulatory knowledge to the valuation process. Here’s how CPAs add value:

📊 Financial Statement Analysis

CPAs review balance sheets, income statements, and cash flow reports to assess a company’s financial health. They adjust for non-recurring expenses, depreciation, and tax liabilities to provide a clearer picture of true earnings.

📉 Risk Assessment & Market Analysis

Business value depends on industry trends, market competition, and economic conditions. CPAs analyze risk factors, competitive advantages, and growth potential to determine the most realistic valuation.

⚖️ Compliance with Valuation Standards

CPAs follow recognized valuation standards such as:

• The Uniform Standards of Professional Appraisal Practice (USPAP)
• The American Institute of CPAs (AICPA) Business Valuation Standards

These frameworks ensure accuracy, credibility, and compliance with tax and legal requirements.

📌 Selecting the Right Valuation Method

CPAs use different valuation methods depending on the business structure and purpose of the valuation:

A CPA determines the best approach based on the business model, industry, and financial position.

4. Why Work with a CPA for Business Valuation?

Hiring a CPA for business valuation ensures accuracy, objectivity, and compliance. Here’s why it matters:

✅ Objectivity & Credibility

CPAs provide unbiased, data-driven valuations that buyers, investors, and courts trust. A CPA’s assessment carries more weight than informal valuations.

✅ Experience with Financial Regulations

CPAs understand tax laws, financial reporting standards, and IRS requirements, ensuring valuations meet regulatory guidelines.

✅ Expert Negotiation Support

During business sales, mergers, or legal disputes, CPAs provide valuation reports that help clients negotiate fair deals and avoid financial pitfalls.

✅ Maximized Value for Owners

A CPA can help identify ways to enhance business value before selling or seeking investors. This includes optimizing cash flow, reducing unnecessary expenses, and improving asset management.

5. How Peavy and Associates Can Help

At Peavy and Associates, we provide accurate, industry-specific business valuations tailored to your needs. Whether you’re selling your business, preparing for succession, or securing financing, our CPAs ensure you receive a reliable valuation backed by financial expertise.

📞 Call us today for a business valuation consultation and ensure your company’s financial future is secure!

Sales tax regulations can be complex, and as a business owner in South Carolina, understanding your tax obligations is crucial for compliance and avoiding costly penalties. Whether you’re selling products online or operating a brick-and-mortar store, knowing how sales tax works in South Carolina will help you manage your finances effectively.

At Peavy and Associates, we specialize in guiding businesses through the complexities of South Carolina’s tax system. In this blog, we’ll break down everything you need to know about South Carolina’s sales tax regulations for 2025.

1. What is South Carolina’s Sales Tax Rate?

South Carolina has a statewide base sales tax rate of 6%. However, local counties and municipalities can impose additional local option sales taxes, bringing the total sales tax rate up to 9% in some areas.

How to Determine the Correct Rate:

• The South Carolina Department of Revenue (SCDOR) provides an updated list of county sales tax rates (SCDOR Website).
• If you operate in multiple locations, you must apply the correct rate for each county.

2. What is Subject to Sales Tax?

Most tangible personal property sold in South Carolina is subject to sales tax. This includes:
✅ Clothing
✅ Electronics
✅ Furniture
✅ Vehicles
✅ Prepared food and beverages

Exemptions from Sales Tax

• Some goods and services are exempt from sales tax in South Carolina, including:Prescription medications and medical devices
• Unprepared groceries (exempt from the state’s 6% sales tax but may still be subject to local sales taxes)
• Wholesale sales (goods sold for resale)
• Certain agricultural supplies and equipment

Pro Tip: If you sell tax-exempt goods, keep proper documentation to support the exemption in case of an audit.

3. Sales Tax on Services: What’s Taxable?

Unlike many other states, most services are NOT subject to sales tax in South Carolina. However, there are some exceptions, including:

• Lodging services (hotels and short-term rentals)
• Dry cleaning and laundry services
• Communications services (cable, satellite TV, and phone services)
• Repair services for taxable items (e.g., car repairs, appliance repairs)

If your business provides both goods and services, you may need to charge sales tax on the tangible portion of the sale (e.g., if you sell a computer and offer installation services, the computer is taxable, but the installation may not be).

4. Do Online Businesses Need to Collect Sales Tax?

Yes! South Carolina requires remote sellers, marketplace facilitators, and online businesses to collect and remit sales tax if they meet economic nexus thresholds.

Economic Nexus Threshold

Your business is required to collect sales tax in South Carolina if, in the previous or current calendar year, you:
📌 Had $100,000 or more in gross sales to South Carolina customers OR
📌 Conducted 200 or more separate sales transactions in South Carolina

This applies to Amazon, eBay, Shopify, and Etsy sellers, as well as other e-commerce businesses.

Tip: If you meet these thresholds, register for a South Carolina sales tax permit through the South Carolina Department of Revenue (SCDOR) website.

5. How to Register for a Sales Tax Permit

If your business is required to collect sales tax, you must register for a sales tax license before making taxable sales.

Steps to Register:

1. Go to the South Carolina Department of Revenue (SCDOR) website (dor.sc.gov).
2. Apply online through the MyDORWAY portal to receive your South Carolina Sales Tax License.
3. Display your sales tax license at your place of business.
4. Start collecting and remitting sales tax as required by state law.

There is a one-time registration fee of $50 when applying for a sales tax license.

6. Filing and Remitting Sales Tax in South Carolina

Once you start collecting sales tax, you must file returns and remit the collected tax to the SCDOR.

Filing Frequency

Your filing frequency depends on the amount of sales tax you collect:

• Monthly: If you collect $100 or more per month in sales tax
• Quarterly: If you collect less than $100 per month
• Annually: If your total sales tax liability is less than $100 per year

How to File Sales Tax Returns

Sales tax returns must be filed electronically through the MyDORWAY online portal.

📌 Due Date: Sales tax returns are due on the 20th of the following month.
For example, sales tax collected in March 2025 must be reported and remitted by April 20, 2025.

7. Penalties for Late or Incorrect Sales Tax Filings

Failure to file or pay sales tax on time can result in penalties and interest charges.

• Late Filing Penalty: 5% per month (up to a maximum of 25%)
• Late Payment Penalty: 0.5% per month (up to a maximum of 25%)
• Interest: Accrues daily on unpaid balances

To avoid penalties:

✅ Set up automatic reminders for sales tax deadlines.
✅ Double-check tax rates and exemptions to avoid under-collecting or over-collecting.
✅ Keep accurate sales records in case of an audit.

8. Are There Any Sales Tax Incentives for Businesses?

Yes! South Carolina offers several sales tax exemptions and incentives for businesses:
Sales Tax Exemptions for Manufacturers
Manufacturers can apply for exemptions on raw materials, industrial equipment, and energy use.

Retailer’s Discount

Businesses that file and pay sales tax on time can claim a discount of 3% on their tax liability (up to $3,000 per year).

Enterprise Zone Sales Tax Exemptions

Businesses located in designated enterprise zones may qualify for sales tax exemptions on equipment and materials.

Final Thoughts: Stay Compliant and Save Money

Understanding South Carolina’s sales tax regulations is essential for businesses to remain compliant and avoid penalties. By properly collecting, reporting, and filing sales tax, you can protect your business while maximizing available tax incentives.

At Peavy and Associates, we specialize in South Carolina sales tax compliance and planning. If you need help registering for a sales tax permit, filing returns, or managing audits, contact us today!