South Carolina vs Vermont LLC: fees, taxes, and which to pick
Data last updated: Apr 21, 2026South Carolina charges $110 to form an LLC; Vermont charges $155. 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 Vermont. 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 Vermont. 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 $45 less to form ($110 vs $155).
- South Carolina is $45 per year cheaper to maintain ($100 vs $145).
- South Carolina has no annual report filing at all. Vermont 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 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 South Carolina, business operates there No foreign LLC registration needed. You pay South Carolina fees only. | $210 | $100 | $410 |
| You live in Vermont, business operates there No foreign LLC registration needed. You pay Vermont fees only. | $300 | $145 | $590 |
| 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 |
| Non-resident forming in Vermont with operations elsewhere You pay Vermont's fees plus a typical home-state foreign LLC registration of about $200 per year. | $500 | $345 | $1,190 |
South Carolina vs Vermont: full comparison
| Dimension | South Carolina | Vermont |
|---|---|---|
| Online filing Can you file the formation document online? | Yes | Yes |
| Online approval time Standard, non-expedited | 2 business days | 3 business days |
| Expedited option Neither state offers paid expedite | Not offered | Not offered |
| Annual report Required in addition to tax | None | Required, $45 |
| 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 | $110 | $155 |
| State sales tax General statewide rate | 6.0% | 6.0% |
Taxes in South Carolina and Vermont
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.
South Carolina tax
No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 5.0%.
Vermont tax
No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 8.5%.
Ongoing compliance
The recurring filings each state requires after formation.
South Carolina
No annual state filing. Registered agent required in South Carolina.
Vermont
Annual report $45, due on your anniversary month. Registered agent required in Vermont.
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.
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.
Vermont
- Check business-name availability on the Vermont entity search.
- Appoint a registered agent with a physical Vermont street address.
- File Articles of Organization for $155.
- Wait for approval. Online typically 3 business days. No paid expedite offered.
- Adopt an operating agreement (recommended, not required by Vermont 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 $45 when it comes due.
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 South Carolina and Vermont (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 South Carolina or Vermont 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
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
Vermont Secretary of State, Corporations Division
- Website
- sos.vermont.gov/corporations
- Phone
- (802) 828-2386
- SOS.CorporationsSupport@vermont.gov
- Vermont Secretary of State, Corporations Division, 128 State Street, Montpelier, VT 05633-1104
- Office
- 128 State Street, Montpelier, VT 05633-1104
- Hours
- 7:45 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
Vermont Department of Taxes
- Website
- tax.vermont.gov
- Phone
- (802) 828-2505
- tax.business@vermont.gov
- Vermont Department of Taxes, 133 State Street, 1st Floor, Montpelier, VT 05633-1401
- Office
- 133 State Street, Montpelier, VT 05633-1401
- Hours
- 7:45 AM to 4:30 PM Eastern, Monday to Friday
Frequently Asked Questions
-
Is it cheaper to form an LLC in South Carolina or Vermont?
South Carolina is cheaper at formation ($110) than Vermont ($155). Ongoing costs are also different: $100 vs $145 per year. Total over three years: $410 vs $590.
-
Can I form an LLC in South Carolina if I live in Vermont?
Yes, but your Vermont business will almost certainly need to register as a foreign LLC in Vermont too, which means paying Vermont's foreign registration fee and any ongoing Vermont obligations on top of the South Carolina 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 South Carolina vs Vermont?
South Carolina online: 2 business days; Vermont online: 3 business days. South Carolina does not offer paid expedite. Vermont does not offer paid expedite.
-
Which state has lower taxes for an LLC, South Carolina or Vermont?
South Carolina: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. Vermont: 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. South Carolina and Vermont 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 South Carolina or Vermont 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 South Carolina and Vermont comparisons
More South Carolina vs ...
Sources
- 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. - Filing fee: legislature.vermont.gov/statutes/section/11/025/04012 · verified April 21, 2026
11 V.S.A. §4012(a)(1): Articles of organization filing fee is $155.00. The fee was raised from $125 to $155 by 2023 Act 77 §37, effective June 20, 2023. Domestic LLC formation is filed through the Vermont Business Services Division online portal or by paper delivered to the Secretary of State. - Expedited filing: sos.vermont.gov/corporations/ · verified April 21, 2026
Vermont does not publish a formal expedited service tier for LLC filings. Online submissions through bizfilings.vermont.gov are generally processed within a few business days. The Secretary of State's Corporations Division has not promulgated fee rules for 24-hour or same-day expedited service comparable to Maine or Delaware. Recorded as not offered. - Annual report fee: legislature.vermont.gov/statutes/section/11/025/04012 · verified April 21, 2026
11 V.S.A. §4012(a)(15): Annual report of a domestic limited liability company fee is $45.00 (raised from $35 by 2023 Act 77 §37, effective June 20, 2023). §4012(a)(16): Annual report of a foreign LLC is $170.00. Report due date is set by 11 V.S.A. §4033(c): within three months after expiration of the company's fiscal year. - Foreign LLC registration fee: legislature.vermont.gov/statutes/section/11/025/04012 · verified April 21, 2026
11 V.S.A. §4012(a)(2): Application for certificate of authority (foreign LLC registration) filing fee is $155.00, raised from $125 by 2023 Act 77 §37. Same fee as domestic formation. - Operating agreement requirement: legislature.vermont.gov/statutes/section/11/025/04003 · verified April 21, 2026
11 V.S.A. §4003 governs the effect of the operating agreement. The operating agreement regulates the affairs of the LLC and may be stored or depicted in any tangible or electronic medium per §4001(20). Vermont statute does not require LLCs to adopt a written operating agreement; default chapter rules apply when no operating agreement exists. - Publication requirement: legislature.vermont.gov/statutes/chapter/11/025 · verified April 21, 2026
11 V.S.A. Chapter 25 (Vermont Limited Liability Company Act) contains no newspaper publication requirement for LLC formation. Not required. - Corporate income tax rate: tax.vermont.gov/business/corporate-income-tax · verified April 21, 2026
Vermont Department of Taxes Corporate Income Tax: graduated rate of 6.00% on the first $10,000 of Vermont net income; 7.00% on the next bracket to $25,000; 8.50% on income above $25,000. Top marginal corporate rate is 8.5%. Applies to C-corporations and to LLCs that elect C-corp treatment. - Sales tax rate: tax.vermont.gov/business/sales-and-use-tax · verified April 21, 2026
Vermont Department of Taxes Sales and Use Tax: statewide sales tax rate is 6.0% on retail sales of tangible personal property unless exempted. Local option sales tax of 1% applies in select municipalities but is not included in the statewide rate. Meals and rooms tax and alcoholic beverages tax are separate. - Franchise tax: tax.vermont.gov/business/corporate-income-tax · verified April 21, 2026
Vermont does not impose a franchise tax on LLCs. A $250 corporate minimum tax applies under 32 V.S.A. §5832 to C-corporations (and to LLCs that elect C-corp tax treatment), not to pass-through LLCs. Recorded as applies: false with nuance in taxes.notes. - Business name search: bizfilings.vermont.gov/online/BusinessInquire · verified April 21, 2026
Vermont Business Services Division business inquiry portal. Use to confirm name availability before filing Articles of Organization. - Online filing portal: bizfilings.vermont.gov/online/Account · verified April 21, 2026
Vermont Business Services Division online filing portal (Corporations Online Filing System, COFS). Most filings can be completed online with credit card payment. Paper filings accepted at 128 State Street, Montpelier. Typical online approval is 1 to 3 business days.