Blackbaud, founded in 1981 and moved to Mount Pleasant in 1989, is the largest publicly traded software company headquartered in the state.
South Carolina Department of Commerce, 1989
When you sell a business in South Carolina, 44 percent of a long-term gain is deducted and the rest taxed at up to 6 percent for 2025, near 3.4 percent in effect, with a 5.21 percent top rate for 2026. Unpaid taxes ride with the assets to the buyer.
South Carolina sits in the middle of the states by number of employer businesses. The state takes a meaningful share of the gain, 6% at the top, with part of a long-term gain excluded. Little else gets in the way of the sale.
Tax on the gain: 44% of a long-term gain is excluded.
Today
Where you stand
The elements this touches
The deal team on what changes when you sell a business in South Carolina.
Before the letter of intent
What South Carolina takes
The top rate fell to 6 percent for 2025, only 56 percent of a long-term gain is taxed, and Act 110 sets a 5.21 percent top rate from 2026.
44% of a long-term gain is excluded.
A founder on film
On what he learned about tax on the way to the sale.
Lewis Titus Wastewater purification and manufacturing · Wyoming
The top marginal individual income tax rate is 6 percent for tax year 2025, down from 6.2 percent in 2024.
Individuals, estates and trusts deduct 44 percent of net capital gain recognised in South Carolina from taxable income.
H.4216 (Act 110, signed March 30, 2026) replaces the brackets for tax years after 2025 with 1.99 percent under 30,000 dollars and 5.21 percent above.
The rate is the state's top rate on the gain for the year shown, the same figure as the indicator in the hero, so the two can never disagree.
The elements this touches
Under contract and at closing
The rules of the sale
No mandatory bulk-sale filing, but unpaid taxes ride with the assets, so buyers ask for a tax compliance certificate.
A Certificate of Tax Compliance (Form C-268, 60 dollar fee) is optional but standard at closing; it is valid 30 days and usually issues within 7 to 10 days.
Gem McDowell Law Group, 2024
Any tax the business owed on or before the transfer date is a lien on the assets in the buyer's hands.
Gem McDowell Law Group, 2022
The elements this touches
When the process opens
Who buys
South Carolina's software scene is anchored by a public company in Mount Pleasant.
Blackbaud, founded in 1981 and moved to Mount Pleasant in 1989, is the largest publicly traded software company headquartered in the state.
South Carolina Department of Commerce, 1989
The elements this touches
Day 0, and the years after
After the close
Since May 2025 a South Carolina trust can run 360 years, putting the state alongside the established dynasty trust jurisdictions.
Proceeds land. What the state keeps of them is settled above; what it lets them do from here is below.
H.3432, signed in May 2025, stretched the wait-and-see perpetuities period from 90 to 360 years.
Post-exit planning is the third act of the same engagement, done with outside experts, and it starts before the letter of intent, when a move or a trust can still change the answer.
FNDRSThe elements this touches
People who walked it
Founders
From founders elsewhere
No founder in South Carolina is quoted yet. These are founders in other states, quoted word for word, each described by role and state.
“I definitely don't think we'd be in the same spot without you guys.”
Founders in South Carolina
Short testimonials from owners who went through the FNDRS process. Most are under two minutes.
Nearby
| South | Tax on the gain | Complexity | Deal volume |
|---|---|---|---|
| Alabama | 5% 2025 | Medium | Medium |
| Arkansas | 3.9% 2025 | Low | Low |
| Delaware | 6.6% 2025 | Medium | Very low |
| Florida | None 2025 | Medium | Very high |
| Georgia | 5.19% 2025 | Medium | High |
| Kentucky | 4% 2025 | Medium | Medium |
| Louisiana | 3% 2025 | Low | Medium |
| Maryland | 8.5% 2025 | Medium | Medium |
| Mississippi | 4.4% 2025 | Low | Low |
| North Carolina | 4.25% 2025 | Medium | High |
| Oklahoma | 4.75% 2025 | Low | Medium |
| Tennessee | None 2025 | Low | Medium |
| Texas | None 2025 | Medium | Very high |
| Virginia | 5.75% 2025 | Medium | High |
| West Virginia | 4.82% 2025 | Medium | Low |
Your next step
Know where you stand in fifteen minutes, or talk the South Carolina sale through with a dealmaker. Either way, no pitch and no obligation.
No pitch and no obligation. If the honest answer is not yet, we will say so, and say what to work on.