How to Start an LLC in South Carolina (2026 Guide)
The Articles base filing fee is $110. Review the actual filing portal for additional online charges before payment; additional charges, if any, are disclosed at checkout. Check current queue, delivery and service options; estimates do not guarantee acceptance or a bank-opening date. Default pass-through LLCs have no recurring South Carolina SOS annual report. An LLC taxed as a corporation, including C or S treatment, must review FormCL-1: a one-time $25 initial corporate license fee/report generally due within 60 days of commencing business or using capital in SC, unless already filed/paid or an exemption applies. Recurring corporate tax returns and license fees are separate obligations; CL-1 is not a $25 annual renewal.
The Articles base filing fee is $110. Review the actual filing portal for additional online charges before payment; additional charges, if any, are disclosed at checkout. Check current queue, delivery and service options; estimates do not guarantee acceptance or a bank-opening date. Default pass-through LLCs have no recurring South Carolina SOS annual report. An LLC taxed as a corporation, including C or S treatment, must review FormCL-1: a one-time $25 initial corporate license fee/report generally due within 60 days of commencing business or using capital in SC, unless already filed/paid or an exemption applies. Recurring corporate tax returns and license fees are separate obligations; CL-1 is not a $25 annual renewal.
- State filing fee
- $110 base + actual checkout charges
- Processing time
- Check current queue
- Annual report
- No recurring SOS report; tax duties separate
- Franchise tax
- Corporate classification requires review
- Local business license
- Check actual jurisdiction and activity
- Income tax (2026+)
- New: 1.99% / 5.21% two-rate
Why Form an LLC in South Carolina?
South Carolina offers a genuinely low-maintenance state-level structure. What you get:
- The Articles base filing fee is $110. Review the actual filing portal for additional online charges before payment; additional charges, if any, are disclosed at checkout. Check current queue, delivery and service options; estimates do not guarantee acceptance or a bank-opening date.
- No annual report for the large majority of LLCs — one of a small group of states that skips this entirely for default pass-through LLCs.
- No franchise tax — nothing recurring owed to the Secretary of State after formation.
- A brand-new, lower entry-level income tax rate — starting the 2026 tax year, the first $30,000 of taxable income is taxed at just 1.99%.
Check the actual city/county and business activity for license, tax, zoning and renewal requirements. There is no statewide general business license, and a local license is not established merely by forming an LLC.
How to Start a South Carolina LLC in 8 Steps
Your name must be distinguishable from every South Carolina entity and contain "LLC" or "Limited Liability Company." Search free through the Secretary of State.
Section33-44-108 permits an SC-resident individual, a domestic corporation, another LLC, or a foreign corporation/company authorized in SC as agent for service of process, with an SC street address. Maintain the designated office separately; it need not be the business location. An out-of-state owner can appoint any eligible agent; a commercial provider is optional.
File the Articles of Organization
Under §33-44-203, include the compliant name; initial designated-office address; agent for service of process and SC street address; each organizer’s name and address; term if a term company; manager-managed status and each initial manager’s name/address if applicable; and any member personal-liability election under §33-44-303(c). Complete execution separately under the current form and §204. Do not substitute a short generic name/agent checklist. The Articles base filing fee is $110. Review the actual filing portal for additional online charges before payment; additional charges, if any, are disclosed at checkout. Check current queue, delivery and service options; estimates do not guarantee acceptance or a bank-opening date.
Document governance in an operating agreement within §33-44-103 limits. Bank requirements vary; an agreement does not guarantee liability protection.
Get Your Free EIN from the IRS
Apply to the IRS for a free EIN if needed and review activity-specific DOR registrations. An EIN does not enroll the LLC in every state tax account automatically.
No recurring SOS annual report; corporate-tax rules separate
Default pass-through LLCs have no recurring South Carolina SOS annual report. An LLC taxed as a corporation, including C or S treatment, must review FormCL-1: a one-time $25 initial corporate license fee/report generally due within 60 days of commencing business or using capital in SC, unless already filed/paid or an exemption applies. Recurring corporate tax returns and license fees are separate obligations; CL-1 is not a $25 annual renewal.
Get Business Licenses & Permits
Check the actual city/county and business activity for license, tax, zoning and renewal requirements. There is no statewide general business license, and a local license is not established merely by forming an LLC.
Understand South Carolina LLC Taxes
A new two-rate income tax starting 2026 (1.99% / 5.21%), no franchise tax, and a 6% base sales tax plus local option taxes up to 3%.
What a South Carolina LLC Really Costs (2026)
| Cost Item | Amount | When |
|---|---|---|
| Articles of Organization (required) | $110 base + actual checkout charges | One-time, at formation |
| Annual report (required) | $0 — none for most LLCs | No recurring SOS report; C/S corporate-tax duties separate |
| Registered agent service (optional) | $100–$150/yr | Annual, if hired |
| Local business license (very likely required) | $25+ (varies) | Annual, per city/county |
| Retail License (if selling taxable goods) | $50 | One-time, before taxable sales |
| EIN from the IRS | $0 — always free | At IRS.gov |
| Name reservation | $0 — no extra charge | Claimed automatically upon filing |
Default pass-through LLCs have no recurring South Carolina SOS annual report. An LLC taxed as a corporation, including C or S treatment, must review FormCL-1: a one-time $25 initial corporate license fee/report generally due within 60 days of commencing business or using capital in SC, unless already filed/paid or an exemption applies. Recurring corporate tax returns and license fees are separate obligations; CL-1 is not a $25 annual renewal.
South Carolina LLC Cost Calculator
South Carolina LLC Cost Calculator
Illustrative formation and five-year budget; excludes unverified online charges and taxes. Provider/local inputs are scenarios.
Excludes state income tax. Local business license fees vary significantly by city and county — confirm your exact amount before finalizing your budget.
No Annual Report — With One Exception
Default pass-through LLCs have no recurring South Carolina SOS annual report. An LLC taxed as a corporation, including C or S treatment, must review FormCL-1: a one-time $25 initial corporate license fee/report generally due within 60 days of commencing business or using capital in SC, unless already filed/paid or an exemption applies. Recurring corporate tax returns and license fees are separate obligations; CL-1 is not a $25 annual renewal.
South Carolina LLC Taxes at a Glance
Default LLCs pass profits to your personal return. Starting the 2026 tax year, South Carolina adopts a new two-rate system: 1.99% on the first $30,000 of taxable income, and 5.21% on income above that (minus a $966 adjustment) — a meaningful simplification and reduction from the prior graduated brackets topping out at 6.0%. Add federal self-employment tax of 15.3%. The LLC itself owes no franchise tax. Sellers collect 6% state sales tax plus local option taxes up to 3%, for a combined rate averaging around 7.4% and reaching 9% in some counties. Details in Step 8.
Plan for the current filing base fee, actual service charges, taxes and jurisdiction-specific licenses. Track corporate-tax obligations separately from the SOS annual-report rule.
- ✓Optional formation assistance; confirm filing scope, service pricing and submission responsibilities.
- ✓Optional formation assistance; confirm filing scope, service pricing and submission responsibilities.
- ✓Confirm registered-agent eligibility, coverage, included periods and renewal charges.
- ✓Review address-use rules and privacy policies; a service does not remove all information from public filings.
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Reporting, agent and local-license distinctions
Default pass-through LLCs have no recurring South Carolina SOS annual report. An LLC taxed as a corporation, including C or S treatment, must review FormCL-1: a one-time $25 initial corporate license fee/report generally due within 60 days of commencing business or using capital in SC, unless already filed/paid or an exemption applies. Recurring corporate tax returns and license fees are separate obligations; CL-1 is not a $25 annual renewal. Section33-44-108 permits an SC-resident individual, a domestic corporation, another LLC, or a foreign corporation/company authorized in SC as agent for service of process, with an SC street address. Maintain the designated office separately; it need not be the business location. An out-of-state owner can appoint any eligible agent; a commercial provider is optional. Check the actual city/county and business activity for license, tax, zoning and renewal requirements. There is no statewide general business license, and a local license is not established merely by forming an LLC.
South Carolina LLC — FAQ
Ahmad Adil is the founder and CEO of LLC School. For filing and ongoing compliance, confirm the requirements with the responsible state agency. This is educational information, not legal or tax advice.
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