LLC formation in South Carolina: fees, filing steps, and ongoing costs
Data last updated: Apr 21, 2026Where South Carolina fits, and where it doesn't
Good fit for South Carolina
You live in South Carolina and run a local operating business. You are a single-member consultant, contractor, or online seller who wants default pass-through treatment and zero state-level entity paperwork. You run a small multi-member LLC taxed as a partnership and want a clean one-and-done formation. You are a real estate holding entity centered on South Carolina property and want the lowest-possible compliance footprint.
Skip South Carolina when
You live in Georgia, North Carolina, or Florida and someone pitched South Carolina as an out-of-state play. The simplicity disappears the moment you foreign-qualify back home, where your home state still collects its filings and fees. You are also a mismatch if you plan to elect C-corp or S-corp treatment with the IRS, since that flips your LLC into the state's License Fee regime (Form CL-1, plus Schedule D on SC1120 or SC1120S). At that point South Carolina looks like any other state.
What a South Carolina LLC actually costs
- Formation filing fee Paid once at formation $110
- Commercial registered agent Annual, estimate $100
- Annual state obligations None in this state $0
- Year 1 total estimate Formation plus first-year ongoing $210
Registered agent estimate uses a $100 midpoint. Specialist agents start around $50 per year. Full-service formation companies bundle RA for $125 to $200.
Cost across the first three years
How South Carolina compares on the basics
How to apply for an LLC in South Carolina
- Pick a compliant LLC name
The name must end in "Limited Liability Company," "LLC," or an approved abbreviation, and must be distinguishable from every other entity on the South Carolina Secretary of State record. Check availability at the South Carolina entity search.
- Designate a registered agent
Every South Carolina LLC is required to have a registered agent with a physical street address in South Carolina. You can serve as your own agent if you live in South Carolina, or hire a commercial service for $99 to $249/yr. See the South Carolina registered agent guide.
- File Articles of Organization of a Limited Liability Company
Filing fee is $110. Online filing is available through the state portal. Mail filings are accepted.
- Apply for a federal EIN
Free directly from the IRS in about 15 minutes (see the EIN guide). Required for opening a business bank account, hiring employees, and most formation-service tax workflows.
- Adopt an operating agreement
South Carolina does not require an operating agreement by statute, but adopting one is strongly recommended to preserve the liability shield. See the operating agreement pillar for the 12 clauses every agreement should include.
Filing walkthrough
South Carolina runs formation through Business Filings Online at businessfilings.sc.gov. You file Articles of Organization for a Limited Liability Company, and the fee is $110 whether you file online or by mail (S.C. Code Section 33-44-1204). Online filings clear in about 2 business days. Mail filings take roughly 10 business days, and the state does not offer a paid expedite tier, so online is already the fast lane.
Every South Carolina LLC needs a registered agent with a physical South Carolina street address. Commercial agents run $50 to $125 a year. If you live in South Carolina you can serve as your own agent, and that is the cheapest path for a small operating LLC that does not mind using a home address on the public record. The agent's signature goes on the Articles of Organization at formation.
People overthink this filing. There is no publication requirement, no county recording step, no notary block, no separate Initial Report to chase down. You file the Articles, pay $110, and the LLC exists.
How South Carolina taxes an LLC
South Carolina's tax picture for default-taxed LLCs is genuinely simple. There is no franchise tax, no state-level annual report fee, and no License Fee unless you elect corporate tax treatment. Per the SCDOR Corporate FAQ, 'A Limited Liability Company (LLC) not taxed as a corporation' is explicitly listed among entities that are NOT subject to the License Fee. Partnership-taxed and single-member disregarded LLCs owe nothing to the state at the entity level.
If you do elect C-corp or S-corp treatment with the IRS, the picture changes. You file Form CL-1 when you start and owe a one-time $25 minimum License Fee, then pay an annual License Fee calculated as 0.1% of capital stock and paid-in surplus plus $15 (minimum $25), reported on Schedule D with SC1120 or SC1120S each year. Most small LLCs skip this by staying on default pass-through treatment.
LLC income flows through to members and lands on their South Carolina personal return. The individual income tax is graduated, topping out at 6% for tax year 2025 and scheduled to trend lower under recent legislation. The flat corporate income tax rate is 5% and only applies to LLCs taxed as corporations. Statewide sales and use tax is 6.0%, with counties allowed to add up to roughly 3% on top, so combined rates typically run 6% to 9%.
Ongoing compliance and costs after year one
For a default-taxed South Carolina LLC, the ongoing state bill is zero. No annual report, no franchise tax, no License Fee. Budget $50 to $125 a year for a commercial registered agent if you use one, and that is the complete compliance cost. You interact with the Secretary of State again only if you change agents, amend the Articles, or dissolve. It is one of the quietest compliance regimes in the country.
LLCs that elect C-corp or S-corp treatment owe the annual License Fee (minimum $25, calculated on capital stock and paid-in surplus) and file Schedule D each year. If you also operate in another state, that state's foreign-LLC fees and annual filings are on top, and that is where most of the real cost lives for cross-border filers.
Common mistakes forming a South Carolina LLC
Two patterns show up. First, filers go hunting for an annual report that does not exist, since South Carolina genuinely does not require one for default-taxed LLCs under S.C. Code Section 33-44-211. Stop searching. Second, owners fill out Form CL-1 because they saw it on the SCDOR site without realizing it only applies to LLCs taxed as corporations. The CL-1 instructions are explicit: 'LLCs should only complete the CL-1 if they're taxed as a corporation.' A default partnership-taxed or disregarded LLC files nothing at the state entity level.
State agencies that handle South Carolina LLCs
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
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
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How much does it cost to form an LLC in South Carolina in 2026?
$110 to file the Articles of Organization with the Secretary of State, per S.C. Code Section 33-44-1204. Plan for another $50 to $125 per year for a commercial registered agent if you use one. A default-taxed LLC has no recurring state filing after that, so year two and beyond cost nothing at the state level.
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Does South Carolina have an annual report for LLCs?
No, not for default-taxed LLCs. Per S.C. Code Section 33-44-211, LLCs do not file an annual report with the Secretary of State. The only entities that do are LLCs that elected C-corp or S-corp treatment federally, which file Form CL-1 at formation and annual License Fee paperwork (Schedule D with SC1120 or SC1120S) each year thereafter.
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Do South Carolina LLCs pay state income tax?
Default-taxed LLCs pay no entity-level South Carolina income tax. Members report their share of LLC income on their personal returns, where the top individual rate is 6% for tax year 2025 and trending lower. If your LLC elects C-corp or S-corp treatment with the IRS, it owes the 5% corporate income tax plus the annual License Fee at the state level.
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What is the South Carolina License Fee and does my LLC owe it?
The License Fee is a corporate-level state fee calculated as 0.1% of capital stock and paid-in surplus plus $15, with a $25 minimum. It only applies to corporations and to LLCs that elected C-corp or S-corp treatment federally. Per the SCDOR Corporate FAQ, 'A Limited Liability Company (LLC) not taxed as a corporation' is specifically excluded. Default partnership-taxed and single-member disregarded LLCs owe $0.
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How long does it take to form a South Carolina LLC?
Online filings through Business Filings Online typically clear in about 2 business days. Mail filings run closer to 10 business days. South Carolina does not offer a paid expedite tier, so the online path is the fastest the state supports.
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Should I form my LLC in South Carolina instead of my home state?
Only if you actually live or operate in South Carolina. The no-annual-report simplicity is a home-state benefit, not a tax-shelter benefit. If you live in Georgia or North Carolina and form in South Carolina, your home state still requires foreign qualification and its own annual filings, and you now pay a South Carolina registered agent on top. For non-residents, forming at home is almost always the right call.
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Does South Carolina require an operating agreement?
No. Per S.C. Code Section 33-44-103(a), members may adopt an operating agreement 'which need not be in writing' to regulate the company's affairs. A written agreement is still worth having for any multi-member LLC and supports the liability shield in litigation.
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Does South Carolina have a publication requirement for new LLCs?
No. South Carolina's Uniform Limited Liability Company Act (S.C. Code Sections 33-44-101 et seq.) does not require newspaper publication of formation. You file the Articles of Organization, pay $110, and the LLC exists once the Secretary of State approves the filing.
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How do I apply for an LLC in South Carolina?
Apply for an LLC in South Carolina by filing Articles of Organization of a Limited Liability Company with South Carolina Secretary of State, Business Filings Division. The filing fee is $110. Online filing is available through the state portal. Approval typically takes 2 business days online. Mail filings take about 10 business days. Before filing, pick a registered agent (see the South Carolina registered agent guide) and confirm your business name is available using the state's entity search.
Further reading on LLCs
How much does an LLC cost?
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Registered agents for LLCs
What the role is, whether to be your own, and honest comparison of 12 national services.
LLC vs sole proprietorship
Liability, taxes, cost, and when each makes sense. Written for a working owner.
LLC vs S-corp election
When the S-corp tax election actually saves money, with concrete SE-tax math.
Dissolve a South Carolina LLC
Step-by-step dissolution: member vote, tax clearance, state filing, IRS closure.
Formation services compared
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Compare South Carolina to another state
Side-by-side breakdowns of fees, taxes, approval time, and compliance. Every other US jurisdiction has a dedicated compare page against South Carolina.
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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.