Pennsylvania vs South Carolina LLC: fees, taxes, and which to pick
Data last updated: Apr 21, 2026Pennsylvania charges $125 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 $36 less in total state fees than Pennsylvania. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.
On speed, South Carolina typically clears standard online filings faster than Pennsylvania. 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 $15 less to form ($110 vs $125).
- South Carolina is $7 per year cheaper to maintain ($100 vs $107).
- South Carolina has no annual report filing at all. Pennsylvania 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 Pennsylvania
- Paid expedited tier
Only South Carolina
- No annual report
Both states
- Online filing
- No entity-level franchise or LLC tax
- No publication requirement
- Operating agreement not statutorily required
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 Pennsylvania, business operates there No foreign LLC registration needed. You pay Pennsylvania fees only. | $232 | $107 | $446 |
| 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 Pennsylvania with operations elsewhere You pay Pennsylvania's fees plus a typical home-state foreign LLC registration of about $200 per year. | $432 | $307 | $1,046 |
| 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 |
Pennsylvania vs South Carolina: full comparison
| Dimension | Pennsylvania | 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 | $100 | Not offered |
| Annual report Required in addition to tax | Required, $7 | None |
| State-imposed annual tax Franchise, privilege, or LLC tax minimum | None | None |
| State income tax On pass-through LLC income at member level | Yes | Yes |
| Publication requirement Newspaper publication after formation | No | No |
| Operating agreement Required by state statute | Recommended, not required | Recommended, not required |
| Foreign LLC fee Cost to register as a foreign LLC in this state | $250 | $110 |
| State sales tax General statewide rate | 6.0% | 6.0% |
Taxes in Pennsylvania 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.
Pennsylvania tax
No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 7.5%.
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.
Pennsylvania
Annual report $7, due 09/30 each year. Registered agent required in Pennsylvania.
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.
Pennsylvania
- Check business-name availability on the Pennsylvania entity search.
- Appoint a registered agent with a physical Pennsylvania street address.
- File Certificate of Organization – Domestic Limited Liability Company (DSCB:15-8821) for $125.
- Wait for approval. Online typically 3 business days. Paid expedite from $100.
- Adopt an operating agreement (recommended, not required by Pennsylvania statute).
- 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 $7 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 Pennsylvania 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 Pennsylvania 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
Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations
- Website
- www.pa.gov/agencies/dos/programs/business.html
- Phone
- (717) 787-1057
- RA-CORPS@pa.gov
- Bureau of Corporations and Charitable Organizations, 401 North Street, 206 North Office Building, Harrisburg, PA 17120
- Office
- 401 North Street, 206 North Office Building, Harrisburg, PA 17120
- Hours
- 8:00 AM to 4:45 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
Pennsylvania Department of Revenue
- Website
- www.pa.gov/agencies/revenue.html
- Phone
- (717) 787-1064
- Pennsylvania Department of Revenue, 1131 Strawberry Square, Harrisburg, PA 17128
- Office
- Strawberry Square, Harrisburg, PA 17128
- Hours
- 8:00 AM to 5:00 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 Pennsylvania or South Carolina?
South Carolina is cheaper at formation ($110) than Pennsylvania ($125). Ongoing costs are also different: $100 vs $107 per year. Total over three years: $410 vs $446.
-
Can I form an LLC in Pennsylvania 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 Pennsylvania 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 Pennsylvania vs South Carolina?
Pennsylvania online: 3 business days; South Carolina online: 2 business days. Pennsylvania offers paid expedite from $100. South Carolina does not offer paid expedite.
-
Which state has lower taxes for an LLC, Pennsylvania or South Carolina?
Pennsylvania: state income tax applies to member-level pass-through income, no entity-level franchise or LLC 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. Pennsylvania 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.
-
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 Pennsylvania 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 Pennsylvania and South Carolina comparisons
More Pennsylvania vs ...
Sources
- Filing fee: www.pa.gov/agencies/dos/programs/business/fees-and-payments · verified April 21, 2026
Pennsylvania Department of State 'Fees and Payments' schedule: Certificate of Organization (domestic LLC) = $125. Veterans, reservists, and National Guard members may qualify for fee waiver with proof of service. - Expedited filing: www.pa.gov/agencies/dos/programs/business/fees-and-payments · verified April 21, 2026
PA Department of State expedited service tiers (over-the-counter or electronic only, not available by mail): Same-day (request in by 10 AM) $100; 3-hour (by 2 PM) $300; 1-hour (by 4 PM) $1,000. We report same-day $100 as the cheapest expedited tier. - Certificate of Formation form: www.pa.gov/agencies/dos/programs/business/types-of-filings-and-registr… · verified April 21, 2026
A Pennsylvania LLC is formed by filing Certificate of Organization (DSCB:15-8821) together with a Docketing Statement (DSCB:15-134A) with the Bureau of Corporations and Charitable Organizations. Fillable PDF is hosted at pa.gov. - Online filing portal: hub.business.pa.gov/ · verified April 21, 2026
PA Business One-Stop Hub (Keystone Login). Online filing portal for Certificate of Organization, annual report, amendments, and UCC. Online LLC formation is typically approved within 1–3 business days based on the Department's published Business Filing Services guidance. - Business name search: file.dos.pa.gov/search/business · verified April 21, 2026
Pennsylvania business entity search, operated by the Department of State. Cloudflare bot-verification gate appears on first load; page otherwise resolves normally. - Naming rules: www.palegis.us/statutes/consolidated/view-statute?iFrame=true&txtType=… · verified April 21, 2026
15 Pa.C.S. Chapter 2 (Entities Generally): Sections 202 (requirements for names) and 204 (name restrictions, including required designators such as 'company,' 'limited,' 'limited liability company,' or an abbreviation). Official Pennsylvania General Assembly statutes. - Operating agreement requirement: www.palegis.us/statutes/consolidated/view-statute?iFrame=true&txtType=… · verified April 21, 2026
15 Pa.C.S. §8815 recognizes operating agreements (written, oral, or implied) but does not require LLCs to adopt one. Under Chapter 88 (Pennsylvania Uniform Limited Liability Company Act of 2016), default statutory rules govern in the absence of an operating agreement. - Publication requirement: www.pa.gov/agencies/dos/programs/business/types-of-filings-and-registr… · verified April 21, 2026
PA Department of State LLC information page: 'No advertising is required when forming a domestic limited liability company.' The old pre-2017 publication rule was repealed by Act 170 of 2016. - Foreign LLC registration fee: www.pa.gov/agencies/dos/programs/business/fees-and-payments · verified April 21, 2026
PA DOS fee schedule: Foreign Registration Statement (foreign LLC) = $250. - Annual report fee: www.pa.gov/agencies/dos/programs/business/types-of-filings-and-registr… · verified April 21, 2026
Pennsylvania Annual Reports page: under Act 122 of 2022, LLCs must file an annual report (Form DSCB:15-146) each year between January 1 and September 30. Fee is $7 for for-profit LLCs. Beginning with 2027 filings, non-compliance triggers administrative dissolution 6 months after the deadline. - Franchise tax: www.pa.gov/agencies/revenue/resources/tax-rates/corporation-tax-rates · verified April 21, 2026
Pennsylvania eliminated the Capital Stock/Foreign Franchise Tax effective for tax years beginning January 1, 2016. No franchise or capital stock tax applies to LLCs. Restricted professional companies pay a separate annual registration fee of at least $500 under 15 Pa.C.S. §8998. - Corporate income tax rate: www.pa.gov/agencies/revenue/resources/tax-rates/corporation-tax-rates · verified April 21, 2026
PA Department of Revenue Corporate Net Income Tax rate for 2026 = 7.49% (Act 53 of 2022 schedule). Rate steps down 0.5 points per year to 4.99% by 2031. Applies to C-corps and to LLCs that elect C-corp treatment. - Sales tax rate: www.pa.gov/agencies/revenue/resources/tax-types-and-information/sales-… · verified April 21, 2026
Pennsylvania Sales, Use and Hotel Occupancy Tax base rate is 6%. Allegheny County adds 1% local tax and Philadelphia adds 2% local tax; statewide base rate reported here. - 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.