South Carolina is one of the simpler states for keeping an LLC alive: the Secretary of State charges $110 to file Articles of Organization, and an LLC that is not taxed as a corporation has no annual report and no annual license fee to pay. The ongoing costs only show up if you elect corporate tax treatment, in which case SCDOR’s corporate license fee and annual report rules apply. There is also no newspaper publication step.
South Carolina LLC at a glance
Fees and deadlines from official state sources| Formation document | Articles of Organization, Limited Liability Company (Domestic), Form F0006 |
|---|---|
| Filing fee | $110 |
| Processing / expedite | The Secretary of State does not publish a processing time or a paid expedite service. |
| Annual report | None for an LLC not taxed as a corporation. An LLC taxed as a corporation files its annual report as part of its SCDOR corporate return. |
| State LLC tax | None for a default LLC. An LLC taxed as a corporation pays the corporate license fee (SCDOR sets a minimum of $25 a year for S corporations). |
| Registered agent | Required, with a South Carolina street address |
| Newspaper publication | Not required |
| Where to file | Business Entities Online (SC Secretary of State) |
Step 1Choose a name that is distinguishable
Your LLC’s name must include “limited liability company,” “limited company,” or one of the accepted abbreviations: L.L.C., LLC, L.C., LC or Ltd. Co. It also has to be distinguishable from names already on the Secretary of State’s records. According to the Secretary of State, an unavailable name is the most common reason business filings are rejected, so check first with the official Business Name Search.
You do not have to reserve a name before you file. If you want to hold one while you get ready, state law lets you reserve it for 120 days for a fee of $25. The reservation cannot be renewed. Keep in mind that filing a name with the state does not give you trademark rights; the Secretary of State’s Trademarks Division handles state trademark registration.
Step 2Appoint an agent for service of process
South Carolina law requires every LLC to designate and continuously maintain, in the state, an office and an agent for service of process. The agent can be a South Carolina resident, a South Carolina corporation, another LLC, or a foreign corporation or company authorized to do business in the state. The form asks for the agent’s name, signature and South Carolina street address. A missing agent name or address is a listed reason for rejection.
If your LLC has no agent, or the agent can’t be found, the law allows legal papers to be served on the Secretary of State instead, which means you could miss a lawsuit. Keep your agent information current.
Step 3File the Articles of Organization
You can file online through Business Entities Online and pay by credit or debit card, or mail Form F0006 to the Secretary of State. The articles ask for:
- the LLC’s name;
- the address of the initial designated office;
- the initial agent’s name, signature and South Carolina street address;
- the name, address and signature of each organizer (at least one);
- optional items: whether the LLC has a set term, whether it is manager-managed (and the managers’ names and addresses), whether any members are personally liable for company debts, a delayed effective date, and any other provisions.
A paper filing goes in as two copies with payment made out to the South Carolina Secretary of State and a self-addressed stamped return envelope, sent to Attn: Corporate Filings, 1205 Pendleton Street, Suite 525, Columbia, SC 29201. The fee is $110. A sample online receipt published by the Secretary of State also shows a separate electronic records access charge, so you may see a small extra amount at checkout when you file online.
The LLC exists when the Secretary of State files the articles, unless you chose a later effective date. No standard processing time or paid expedite option is published, so build some slack into your plans.
Step 4Know your ongoing obligations
For most LLCs, there is nothing to file with the Secretary of State each year. SCDOR lists an LLC not taxed as a corporation among the entities not subject to the annual report or the license fee.
That changes if your LLC elects to be taxed as a corporation (C or S). According to SCDOR, such an LLC must:
- file the CL-1 (Initial Annual Report of Corporations) within 60 days of doing business or using capital in South Carolina, with a one-time initial license fee of $25;
- file Form SC1120 or SC1120S each year, with the annual report included as Schedule D;
- pay the annual license fee of 0.1% of capital stock and paid-in surplus plus $15, which for an S corporation cannot be less than $25. For an S corporation, the return and payment are due by the 15th day of the third month after the end of the business year.
An LLC administratively dissolved by the state must apply for reinstatement within two years of dissolution. If the dissolution was for failing to file a tax return, you will need a Certificate of Tax Compliance from SCDOR to include with the reinstatement application.
Step 5Finish setting up the business
- Operating agreement. Write one even if you’re the only member. It sets out ownership and management and is kept with your records, not filed with the state.
- EIN. Get a free Employer Identification Number from the IRS. You’ll need it for a bank account, for hiring, and for most state tax registrations.
- State tax accounts. If you sell taxable goods or have employees, register with SCDOR through the MyDORWAY Business Tax Application, which covers the retail license, sales and use tax, withholding and other accounts. SCDOR says to allow up to 5 business days for processing.
- Local licenses. The Secretary of State does not issue business licenses. Check with your city or county; professional licenses come from the Department of Labor, Licensing and Regulation.
- Proof of good standing. If a bank or another state asks for one, a Certificate of Existence costs $10 from the Secretary of State.
What a South Carolina LLC costs
| Item | Amount |
|---|---|
| Articles of Organization (one-time) | $110, plus any online records access charge |
| Name reservation (optional) | $25 |
| Annual report (default LLC) | $0, not required |
| Annual license fee (default LLC) | $0, not required |
| If taxed as a corporation | $25 initial license fee with the CL-1, then the annual license fee (at least $25 for an S corporation) |
| EIN from the IRS | Free |
How South Carolina compares
State filing fee to form an LLC, next to neighboring states. The national median is $100.
National median · Fees from each state's official sources; some states charge a different amount online or by mail. If you live and run your business in South Carolina, forming your LLC in another state usually means also registering it here as a foreign LLC, so you pay both states' fees.
How South Carolina taxes LLCs
South Carolina generally follows the federal classification. A single-member LLC that isn’t taxed as a corporation is ignored for South Carolina tax purposes: if you own it personally, its income goes on your SC1040. An LLC taxed as a corporation for federal purposes is treated as a corporation for South Carolina income and other taxes, which brings in the license fee described above. An LLC taxed as an S corporation can also elect to have its active trade or business income taxed at the entity level, an option SCDOR has offered since tax year 2021. Talk to a tax professional before making either election.
File it yourself or use a formation service?
South Carolina’s online system walks you through the Articles of Organization, and the form itself is short, so many owners file on their own and pay only the state fee. A formation service can save time, act as your registered agent, or prepare an operating agreement, but it adds its own charges on top of what the state collects. Choose based on how much of the paperwork you want to handle yourself and whether you have a South Carolina address for the agent role.
Frequently asked questions
Does a South Carolina LLC file an annual report?
Not if it is taxed as a sole proprietorship or partnership. SCDOR excludes LLCs not taxed as corporations from the annual report and license fee. An LLC taxed as a corporation files its annual report with its corporate return.
How long does approval take?
The Secretary of State does not publish a processing time or offer a paid expedite service, though filing online avoids mailing time.
Do I have to reserve my name first?
No. A reservation ($25 for 120 days) is only useful if you aren’t ready to file yet.
Do I need a business license from the state?
Not from the Secretary of State. General business licenses are issued by cities and counties; retail licenses come from SCDOR.
My LLC was formed in another state. What do I file?
An out-of-state LLC doing business in South Carolina applies for a Certificate of Authority, which costs $110 and requires a certificate of existence from the home state dated within the past 30 days.
Sources
- SC Secretary of State: Downloadable forms and fees for starting a business
- SC Secretary of State: Name reservation forms and fees
- SC Secretary of State: Articles of Organization (Form F0006)
- SC Secretary of State: Business Entities Online
- SC Secretary of State: Business Name Search
- SC Secretary of State: FAQs about business entities
- SC Secretary of State: Business entities
- SC Secretary of State: Online business filings system launch
- SC Secretary of State: Sample online filing receipt
- S.C. Code Title 33, Chapter 44 (Uniform Limited Liability Company Act)
- SCDOR: Corporate FAQs
- SCDOR: S Corporation
- SCDOR: Income tax for single-member LLCs
- SCDOR: Apply for a business tax account
- IRS: Get an Employer Identification Number