New York vs South Carolina LLC: fees, taxes, and which to pick
Data last updated: Apr 21, 2026New York charges $200 to form an LLC; South Carolina charges $110. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.
Over a rolling three-year window, South Carolina runs about $180 less in total state fees than New York. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.
New York imposes an entity-level annual tax on every LLC ($25 minimum). South Carolina does not. For pass-through LLCs that would otherwise owe nothing at the state level, that minimum is the deciding line.
On speed, South Carolina typically clears standard online filings faster than New York. Both states offer expedited tiers at an additional cost for filers on tight timelines.
For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.
Key differences at a glance
- South Carolina costs $90 less to form ($110 vs $200).
- South Carolina is $30 per year cheaper to maintain ($100 vs $130).
- New York imposes an entity-level franchise or LLC tax that applies to pass-through LLCs. South Carolina does not.
- New York requires newly formed LLCs to publish a formation notice in local newspapers; this can add $50 to $1,800 depending on county.
- New York requires LLCs to adopt a written operating agreement by statute. The other state treats it as recommended rather than required.
- South Carolina has no annual report filing at all. New York requires an annual (or biennial) report every reporting period.
Where each state fits
For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.
What each state offers that the other does not
Only New York
- Paid expedited tier
Only South Carolina
- No entity-level franchise or LLC tax
- No annual report
- No publication requirement
- Operating agreement not statutorily required
Both states
- Online filing
Three-year cost, side by side
Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.
Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).
What it costs under your specific situation
The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.
| Scenario | Year 1 | Each year after | 3-year total |
|---|---|---|---|
| You live in New York, business operates there No foreign LLC registration needed. You pay New York fees only. | $330 | $130 | $590 |
| You live in South Carolina, business operates there No foreign LLC registration needed. You pay South Carolina fees only. | $210 | $100 | $410 |
| Non-resident forming in New York with operations elsewhere You pay New York's fees plus a typical home-state foreign LLC registration of about $200 per year. | $530 | $330 | $1,190 |
| Non-resident forming in South Carolina with operations elsewhere You pay South Carolina's fees plus a typical home-state foreign LLC registration of about $200 per year. | $410 | $300 | $1,010 |
New York vs South Carolina: full comparison
| Dimension | New York | South Carolina |
|---|---|---|
| Online filing Can you file the formation document online? | Yes | Yes |
| Online approval time Standard, non-expedited | 3 business days | 2 business days |
| Expedited option Paid fast-track filing | $25 | Not offered |
| Annual report Required in addition to tax | Required, $9 | None |
| State-imposed annual tax Franchise, privilege, or LLC tax minimum | $25 minimum | None |
| State income tax On pass-through LLC income at member level | Yes | Yes |
| Publication requirement Newspaper publication after formation | Required | No |
| Operating agreement Required by state statute | Required by statute | Recommended, not required |
| Foreign LLC fee Cost to register as a foreign LLC in this state | $250 | $110 |
| State sales tax General statewide rate | 4.0% | 6.0% |
Taxes in New York and South Carolina
How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.
New York tax
$25 minimum annual tax (gross-receipts-tiered basis). State income tax applies to member-level pass-through income. Corporate rate 7.3%.
South Carolina tax
No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 5.0%.
Ongoing compliance
The recurring filings each state requires after formation.
New York
Annual report $9, due on your anniversary month. Registered agent required in New York.
South Carolina
No annual state filing. Registered agent required in South Carolina.
Formation process, side by side
What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.
New York
- Prepare a publication-ready notice (required in New York).
- Check business-name availability on the New York entity search.
- Appoint a registered agent with a physical New York street address.
- File Articles of Organization (DOS-1336) for $200.
- Wait for approval. Online typically 3 business days. Paid expedite from $25.
- Adopt a written operating agreement (statutorily required in New York).
- Apply for a federal EIN (free from the IRS).
- Open a business bank account to separate personal and business finances.
- File your first annual report and pay $9 when it comes due.
South Carolina
- Check business-name availability on the South Carolina entity search.
- Appoint a registered agent with a physical South Carolina street address.
- File Articles of Organization of a Limited Liability Company for $110.
- Wait for approval. Online typically 2 business days. No paid expedite offered.
- Adopt an operating agreement (recommended, not required by South Carolina statute).
- Apply for a federal EIN (free from the IRS).
- Open a business bank account to separate personal and business finances.
- No annual state filing required in South Carolina.
Before you pick either state
A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.
Registered agent is non-negotiable. Both New York and South Carolina (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.
Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in New York or South Carolina does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.
EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.
Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.
Agency contacts
New York Department of State - Division of Corporations, State Records and Uniform Commercial Code
- Website
- dos.ny.gov/division-corporations-state-records-and-uniform-commercial-code
- Phone
- (518) 473-2492
- Department of State, Division of Corporations, State Records, and Uniform Commercial Code, One Commerce Plaza, 99 Washington Avenue, Albany, NY 12231
- Office
- One Commerce Plaza, 99 Washington Avenue, 6th Floor, Albany, NY 12231
- Hours
- 9:00 AM to 4:30 PM Eastern, Monday to Friday
South Carolina Secretary of State, Business Filings Division
- Website
- sos.sc.gov
- Phone
- (803) 734-2158
- SC Secretary of State's Office, 1205 Pendleton Street, Suite 525, Columbia, SC 29201
- Office
- Edgar Brown Building, 1205 Pendleton Street, Suite 525, Columbia, SC 29201
- Hours
- 8:30 AM to 5:00 PM Eastern, Monday to Friday
New York State Department of Taxation and Finance
- Website
- www.tax.ny.gov
- Phone
- (518) 457-5181
- NYS Department of Taxation and Finance, W.A. Harriman Campus, Albany, NY 12227
- Office
- W.A. Harriman Campus, Albany, NY 12227
- Hours
- 8:30 AM to 4:30 PM Eastern, Monday to Friday
South Carolina Department of Revenue
- Website
- dor.sc.gov
- Phone
- (844) 898-8542
- 300A Outlet Pointe Boulevard, Columbia, SC 29210
- Hours
- 8:30 AM to 5:00 PM Eastern, Monday to Friday
Frequently Asked Questions
-
Is it cheaper to form an LLC in New York or South Carolina?
South Carolina is cheaper at formation ($110) than New York ($200). Ongoing costs are also different: $100 vs $130 per year. Total over three years: $410 vs $590.
-
Can I form an LLC in New York if I live in South Carolina?
Yes, but your South Carolina business will almost certainly need to register as a foreign LLC in South Carolina too, which means paying South Carolina's foreign registration fee and any ongoing South Carolina obligations on top of the New York ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.
-
How long does it take to form an LLC in New York vs South Carolina?
New York online: 3 business days; South Carolina online: 2 business days. New York offers paid expedite from $25. South Carolina does not offer paid expedite.
-
Which state has lower taxes for an LLC, New York or South Carolina?
New York: state income tax applies to member-level pass-through income, plus a $25 minimum entity-level tax. South Carolina: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.
-
Do both states require a registered agent?
Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. New York and South Carolina both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.
-
Does New York or South Carolina have a publication requirement?
New York does. New LLCs must publish a formation notice in approved newspapers, which can add $50 to $1,800 to your first-year cost depending on the county where the LLC is based. South Carolina has no publication requirement.
-
Do I need a written operating agreement in New York or South Carolina?
New York requires LLCs to adopt a written operating agreement by statute. South Carolina treats it as strongly recommended rather than required. In practice, any LLC with more than one member, or any LLC planning to preserve its liability shield, should have a written agreement regardless of which state it's formed in.
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Which state should I pick if I run an online business from home?
Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in New York or South Carolina to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.
Full state guides
More New York and South Carolina comparisons
More New York vs ...
Sources
- Filing fee: dos.ny.gov/fee-schedules · verified April 21, 2026
NY DOS Division of Corporations fee schedule: domestic LLC Articles of Organization filing fee = $200. Professional service LLC same fee. - Expedited filing: dos.ny.gov/fee-schedules · verified April 21, 2026
Expedited surcharges on top of the filing fee: 24 hours = $25, same day = $75, 2 hours = $150. We report the cheapest 24-hour tier. Biennial Statements cannot be expedited. - Foreign LLC registration fee: dos.ny.gov/application-authority-foreign-limited-liability-companies · verified April 21, 2026
Foreign LLC Application for Authority filing fee = $250 (standard). Professional service foreign LLC = $200. Foreign LLCs are also subject to the publication requirement. - Operating agreement requirement: www.nysenate.gov/legislation/laws/LLC/417 · verified April 21, 2026
NY LLC Law Section 417(a): 'the members of a limited liability company shall adopt a written operating agreement.' Must be adopted before, at, or within 90 days after the filing of the Articles of Organization. The agreement is not filed with the state, but is statutorily required. - Publication requirement: www.nysenate.gov/legislation/laws/LLC/206 · verified April 21, 2026
NY LLC Law Section 206 requires publication of a notice of LLC formation in two newspapers for six consecutive weeks within 120 days of formation, followed by filing a Certificate of Publication ($50) with DOS. Failure to publish suspends the LLC's authority to carry on, conduct, or transact business in New York. Cost ranges are referenced via county clerk designations; representative estimate ~$1,200 mid-range. - Annual report fee: dos.ny.gov/biennial-statements-business-corporations-and-limited-liabi… · verified April 21, 2026
Biennial Statement fee = $9, mandated by NY LLC Law Section 301(e). Filed via the e-Statement Filing Service. Filing period is the calendar month of original Articles of Organization filing, every two years. - Franchise tax: www.tax.ny.gov/pit/efile/annual_filing_fee.htm · verified April 21, 2026
New York charges an annual LLC filing fee on Form IT-204-LL, tiered by NY source gross income: <=$100k = $25; $100,001-$250,000 = $50; $250,001-$500,000 = $175; $500,001-$1M = $500; $1M-$5M = $1,500; $5M-$25M = $3,000; over $25M = $4,500. Disregarded-entity single-member LLCs pay a flat $25. Recorded as gross-receipts-tiered franchise-style charge because it functions as a mandatory annual state charge on the LLC entity even when pass-through. - Corporate income tax rate: www.tax.ny.gov/bus/ct/def_art9a.htm · verified April 21, 2026
Article 9-A NY corporate franchise tax: base rate 6.5% for most corporations; 7.25% applies to business income over $5M (extended through 2026 under the 2021 state budget). LLCs are pass-through by default and do not owe Article 9-A unless they elect C-corp status federally. - Sales tax rate: www.tax.ny.gov/bus/st/stidx.htm · verified April 21, 2026
NY statewide sales and use tax rate is 4%. Local jurisdictions add additional rates; combined rates range from about 7% to 8.875% (NYC). We record the statewide rate only. - Business name search: apps.dos.ny.gov/publicInquiry/ · verified April 21, 2026
NY DOS Division of Corporations Public Inquiry entity search. Can lookup by entity name or DOS ID. - Online filing portal: dos.ny.gov/articles-organization-domestic-limited-liability-company-0 · verified April 21, 2026
Official DOS page for Articles of Organization for domestic LLCs. Links to online filing. Acknowledgement receipt emailed within minutes; processing typically completed in 2-3 business days. - Certificate of Formation name: dos.ny.gov/system/files/documents/2024/05/articles-of-organization.pdf… · verified April 21, 2026
Form DOS-1336, Articles of Organization for a Domestic Limited Liability Company, published by the NY DOS Division of Corporations. - Filing fee: www.scstatehouse.gov/code/t33c044.php · verified April 21, 2026
S.C. Code Section 33-44-1204(a)(1) establishes the Articles of Organization filing fee for a domestic LLC at $110. Section 33-44-1204(a)(4) sets the foreign LLC Certificate of Authority fee at $110 as well. Confirmed via South Carolina Legislature official code text. - Expedited filing: sos.sc.gov/ · verified April 21, 2026
South Carolina Secretary of State does not advertise a paid expedited filing tier for LLC Articles of Organization. Online filings through the Business Filings Online system typically process within 1 to 2 business days, which serves as the de facto expedited path. Recorded as offered: false. Note: sos.sc.gov is CloudFront-protected and frequently blocks automated browsers; the code citation above is the primary authoritative source for filing procedures. - Annual report fee: dor.sc.gov/business-income-taxes/corporate/corporate-faqs · verified April 21, 2026
South Carolina has no Secretary of State annual report for LLCs. Per SCDOR Corporate FAQ and Form CL-1 instructions: 'LLCs should only complete the CL-1 if they're taxed as a corporation.' Default-taxed LLCs (partnership or disregarded) owe no annual license fee and file no annual report at the state level. - Franchise tax: dor.sc.gov/business-income-taxes/corporate/corporate-faqs · verified April 21, 2026
South Carolina Department of Revenue Corporate FAQ (License Fee section): the License Fee rate is 0.1% of capital stock and paid-in surplus plus $15, minimum $25. Entities NOT subject to the License Fee include 'A Limited Liability Company (LLC) not taxed as a corporation.' Default-classified LLCs therefore owe no franchise-style state entity tax in South Carolina. - Operating agreement requirement: www.scstatehouse.gov/code/t33c044.php · verified April 21, 2026
S.C. Code Section 33-44-103(a) provides that all members may enter into an operating agreement, 'which need not be in writing,' to regulate the company's affairs. No statute requires a written operating agreement. Recorded as not required. - Foreign LLC registration fee: www.scstatehouse.gov/code/t33c044.php · verified April 21, 2026
S.C. Code Section 33-44-1204(a)(4): Application by a foreign LLC for a certificate of authority to transact business in South Carolina is $110. - Publication requirement: www.scstatehouse.gov/code/t33c044.php · verified April 21, 2026
South Carolina Uniform Limited Liability Company Act (S.C. Code Sections 33-44-101 et seq.) has no newspaper publication requirement for LLC formation. - Business name search: businessfilings.sc.gov/BusinessFiling/Entity/Search · verified April 21, 2026
South Carolina Business Filings Online entity search. Note: the businessfilings.sc.gov portal is occasionally slow or geo-restricted from automation, but resolves for normal browsers. - Sales tax rate: dor.sc.gov/sales-use-tax-index/sales-tax · verified April 21, 2026
South Carolina Department of Revenue Sales Tax page: 'The statewide Sales and Use Tax rate is 6%. Counties may impose an additional 1% local sales tax if voters in that county approve the tax.' Combined rates in SC counties typically run 6% to 9%. - Corporate income tax rate: dor.sc.gov/business-income-taxes/corporate/c-corporation · verified April 21, 2026
South Carolina Department of Revenue C Corporation page: 'The Corporate Income Tax Rate is 5% on South Carolina taxable income.' Applies to C-corps, S-corps (at the entity level via built-in gains or LIFO recapture), and LLCs taxed as corporations. Default-classified LLCs are pass-throughs and do not owe this entity-level tax.