On Thursday, May 22, the House of Representatives passed a comprehensive tax bill, setting the stage for the tax landscape under the Trump administration. While we expect changes as the Senate takes up the bill, the House version provides a first look at the provisions affecting both individual and business tax planning moving forward.

Bergin Fisniku, Director of our National Tax Practice, breaks down what's included, what's omitted, and how it may affect you in today's video.

The information provided in this communication is of a general nature and should not be considered professional advice.  You should not act upon the information provided without obtaining specific professional advice.  The information above is subject to change.

If your business sells Durable Medical Equipment (DME) to customers in South Carolina, sales tax still applies—for now.

On June 26, 2024, the South Carolina Supreme Court struck down the state’s sales tax exemption for DME paid directly by Medicaid or Medicare. The Court ruled that limiting the exemption to entities with a principal place of business in South Carolina violated the Commerce Clause of the U.S. Constitution by favoring in-state businesses. As a result, all DME sellers, regardless of location, must collect and remit South Carolina sales tax.

A new amendment, effective May 12, 2025, removes the in-state location requirement. Businesses do not need a physical presence in South Carolina, but they do still need a valid SC retail license to remain compliant.

According to the SC Department of Revenue (SCDOR), vendors should continue collecting sales tax on DME until formal guidance is issued, which is anticipated by the end of June or July 2025. Out-of-state vendors may be eligible for refunds on sales tax collected and remitted prior to June 26, 2024, under South Carolina’s statute of limitations.

What This Means for You

• DME is currently taxable in South Carolina, regardless of payer.
• Medicaid/Medicare-paid DME will regain exempt status only once official guidance is released.
• Out-of-state vendors may qualify for refunds on sales tax collected before June 26, 2024.

Need help with filing refunds, registering for a retail license, or understanding how this affects your business? The Elliott Davis State and Local Tax (SALT) Team is in direct contact with the SCDOR and ready to assist. We’ll keep you updated as new guidance is released.

The information provided in this communication is of a general nature and should not be considered professional advice.  You should not act upon the information provided without obtaining specific professional advice.  The information above is subject to change.

If you’re planning to retire in the coming years and haven’t identified an internal successor, selling your business to an outside buyer may be the best path forward. Just like selling your home, preparing your business for sale involves cleaning up, staging, and setting a strong foundation to attract qualified buyers and secure the best possible outcome.

This checklist is designed for high-net-worth business owners preparing for external succession. By taking proactive steps early, especially around tax planning, financial cleanup, and employee communication, you can avoid common pitfalls, reduce delays, and improve your after-tax value.

1. Financial Preparation

Think of this like your home’s curb appeal as this is the first information a buyer sees. You need a manicured lawn, tidy bushes, and a fresh coat of paint.

• Are your financial statements and tax filings current and accurate?
• Would a buyer’s accountant have any concerns after reviewing your records?
• Does your forecasted cash flow support your valuation expectations?

2. Operational Improvements

Fix the squeaky door and modernize the master bath. A well-run business is more attractive, just like a move-in-ready home.

• What operational inefficiencies could be addressed to improve margins?
• Is your equipment and technology up to date and fully functional?
• How stable are your customer and supplier relationships and will they continue post-sale?

3. Legal and Compliance

Would you sell your house without checking the deed, permits, and HOA agreements? Same idea here.

• Are all contracts, leases, and agreements current and legally sound?
• Are there any unresolved legal or regulatory issues that could surface during diligence?
• Have you protected your intellectual property (e.g., trademarks, copyrights, patents)?

4. Business Valuation

Like setting the right listing price on your home, an accurate valuation sets expectations and guides negotiations.

• Have you hired a professional to value your business?
• How does your business compare to similar companies in your industry?
• Are there ways to enhance value pre-sale (e.g., margin improvements, customer contracts)?

For further reading on the business valuation process and common mistakes to avoid, check out our related article.

5. Employee and Stakeholder Management

Potential buyers want to know that the neighborhood (your team) won’t fall apart after they move in.

• Who are your key employees, and what’s your plan to retain them during transition?
• Have you developed a communication plan to address employee concerns?
• Are stakeholders aligned and informed about your succession plans?

6. Seek Professional Advice Early

Before you list your home, you call your realtor. Before you sell your business, call your advisory team.

• Do you have a coordinated team of tax advisors, attorneys, and wealth managers involved?
• Have you modeled the after-tax impact of the sale on your personal financial goals?
• Have you evaluated whether an auction, negotiated sale, or investment banker makes the most sense?

For further information on what to consider when choosing your successor, read our related article.

We Can Help

At Elliott Davis, we work with business owners to prepare their company for a successful exit, long before the sale process begins. From tax planning and quality of earnings preparation to buyer targeting and post-close transition strategy, we help you position your business for maximum value and minimum disruption.

Our team can:

• Clean up your tax profile and financials before diligence.
• Recommend strategic and operational initiatives to drive value in the business.
• Identify risks and compliance gaps that may slow the deal.
• Strengthen your negotiating position by preparing for buyer objections.
• Align your deal structure with your personal financial goals.

Not sure how your entity type impacts a sale? Understanding the tax consequences of a sale is key to structuring the deal correctly. We break it down here: C corporation | S corporation | partnership

Selling your business is a once-in-a-lifetime event. Let us help you do it right with confidence, clarity, and a strong plan.

The information provided in this communication is of a general nature and should not be considered professional advice.  You should not act upon the information provided without obtaining specific professional advice.  The information above is subject to change.