How to Start an LLC in South Carolina in 2026: Filing, Taxes and First-Year Cost

South Carolina is one of the cheaper states to run an LLC in. The formation filing costs $110, and an ordinary LLC files no annual report and pays no yearly state fee to stay registered. That simplicity hides a few traps, though: the Department of Revenue registrations you need before you sell, the CL-1 form that applies only if you choose corporate taxation, and the city and county business licenses that every local government now renews on the same date. This guide takes a first-time founder through each step, explains where the money goes and finishes with a worked first-year budget. Fees were checked against the South Carolina Code and SCDOR pages in October 2026.

Quick answer

To start an LLC in South Carolina, file articles of organization with the Secretary of State and pay $110. There is no annual report for an LLC taxed as a sole proprietorship or partnership. Before selling taxable goods, register with SCDOR on MyDORWAY and buy a $50 retail license for each location.

• You need an agent for service of process with a South Carolina street address

• The name must include LLC, L.L.C., limited liability company or limited company

• Optional: name reservation $25 for 120 days, certificate of existence $10

• LLCs taxed as corporations file Form CL-1 with a $25 minimum license fee

• City and county business licenses renew every year by April 30

What a South Carolina LLC is and who should form one

A South Carolina LLC is created under Chapter 44 of Title 33 of the SC Code, the state's version of the Uniform Limited Liability Company Act. Section 33-44-303 says the company's debts belong to the company, not to its members or managers, simply because they hold that role. The same section adds a useful protection: failing to observe company formalities, such as holding meetings, is not by itself a reason to make members personally liable. You still need to keep business money separate and sign contracts in the company's name.

For federal tax purposes, a one-owner LLC is a disregarded entity and a multi-owner LLC is a partnership, unless you elect to be taxed as a corporation. That choice drives your South Carolina filings too, which is why the annual report question has two answers in this state.

A South Carolina LLC suits contractors, landscapers, cleaning companies, short-term rental owners, online sellers and consultants who live and work in the state. You do not need to be a South Carolina resident or a US citizen to be a member. If your business actually operates in another state, forming here does not avoid that state's fees: you would need to register there as a foreign LLC as well. Form where you work.

South Carolina LLC at a glance (2026)

$110

Articles of organization

SC Code §33-44-1204

$0

Annual report fee

LLCs taxed as partnership or disregarded

$50

SCDOR retail license

per location, no expiry

$10

Change of agent

statement of change

Step 1: choose a name the Secretary of State will accept

Section 33-44-105 requires the name to contain "limited liability company" or "limited company", or an abbreviation such as "LLC", "L.L.C.", "LC" or "L.C." The name must also be distinguishable on the Secretary of State's records from every other registered or reserved entity name.

"Distinguishable" is judged on the records, not on whether customers might confuse two businesses. Small changes that only alter the entity ending, add "the", or swap singular for plural are generally not enough. Search the Secretary of State's business entity database before you file and try a few variations, because a rejected name delays the whole filing. A name being free on the state register does not mean nobody holds a trademark on it, so a quick federal trademark search is worth doing if you plan to build a brand.

If you are not ready to file yet, you can reserve a name for $25. Under section 33-44-106 the reservation lasts 120 days and cannot be renewed, so plan to file within that window. Most founders skip the reservation and simply file the articles, which claims the name at the same time.

Step 2: appoint an agent for service of process

South Carolina's statute calls the registered agent an "agent for service of process", and pairs it with a "designated office". Section 33-44-108 says every LLC must keep both in the state at all times. The designated office does not have to be a place of business, but the agent must have a street address where lawsuits and official notices can be delivered.

Who can serve as agent:

• An individual who lives in South Carolina, including you or another member.
• A domestic corporation or another LLC, which is how commercial agent companies serve.
• A foreign corporation or company authorized to do business in South Carolina.

Registered agent options in South Carolina

	You or another member	Commercial agent
State fee to appoint	Included in the $110 articles	Included in the $110 articles
Yearly cost	$0	About $50–$300 (market estimate)
Address on public record	Your home or office	The agent's office
Must be reachable at the address	Yes, during business hours	Handled by the agent
Change later	$10 statement of change	$10 statement of change

State fee to appoint

You or another member

Included in the $110 articles

Commercial agent

Included in the $110 articles

Yearly cost

You or another member

$0

Commercial agent

About $50–$300 (market estimate)

Address on public record

You or another member

Your home or office

Commercial agent

The agent's office

Must be reachable at the address

You or another member

Yes, during business hours

Commercial agent

Handled by the agent

Change later

You or another member

$10 statement of change

Commercial agent

$10 statement of change

The commercial agent price range is our estimate from published provider pricing, not an official figure. The real choice is privacy and reliability: your agent's address appears on the public record, and a missed lawsuit can lead to a default judgment against the company.

If you change agents later, file a statement of change for $10 under section 33-44-109. If an agent you hired resigns, section 33-44-110 ends the appointment on the 31st day after the resignation is filed, so appoint a replacement promptly. When an LLC has no agent who can be found, section 33-44-111 makes the Secretary of State the fallback for service, which means papers are forwarded by certified mail to your designated office and may arrive late.

Step 3: file articles of organization

The articles of organization create the LLC. Section 33-44-203 lists what they must contain: the company name, the address of the initial designated office, the name and street address of the initial agent, and the name and address of each organizer. The articles must also say whether the company is a term company (one that ends on a set date), whether it is manager-managed and, if so, who the initial managers are, and whether any members agree to be personally liable for company debts. Almost every small business answers "no" to the last question.

Filing a South Carolina LLC

1. 1

   Search the name

   Check the Secretary of State's business entity search for anything not distinguishable from your proposed name.

2. 2

   Open the online filing

   Go to the Secretary of State's online filings at sos.sc.gov/online-filings and start a new domestic LLC. Paper filing by mail is also accepted.

3. 3

   Enter the office, agent and organizers

   Give the designated office address, the agent's name and South Carolina street address, and each organizer's name and address.

4. 4

   Choose member- or manager-managed

   If managers will run the company, list each initial manager. Otherwise the members manage it.

5. 5

   Pick the effective date

   Leave it as the filing date or name a later date. Anything beyond 90 days after filing takes effect on day 90.

6. 6

   Pay $110

   Add a certificate of existence ($10) if your bank or landlord asks for one.

   Tip: Any card processing or convenience charge shown at checkout is set by the portal, so check the total before paying.

Organizer versus member. The organizer is whoever signs and submits the articles. It can be you, an attorney or a filing service, and the organizer does not have to become a member. Listing yourself as organizer is simplest if you file on your own.

The effective date can save you paperwork. Section 33-44-206 lets you name a later effective date, capped at 90 days. Filing in early December with a January 1 effective date keeps the company out of the current tax year entirely, which is tidy for bookkeeping. The trade-off is that the company does not exist until that date, so you cannot sign a lease or open a bank account in its name before then.

Processing. The Secretary of State does not publish a guaranteed turnaround, so check the processing times it posts before promising a landlord or bank a date. If something is wrong, the office returns the filing with a note explaining what to correct, and you resubmit.

Step 4: EIN, operating agreement and bank account

Once the LLC appears as active in the business entity search, apply to the IRS for an employer identification number. It costs Free ($0) and takes minutes online; see our EIN guide. You need the EIN to open a business bank account and to register with SCDOR.

South Carolina does not require you to file an operating agreement with the state, but the statute lets the operating agreement override many of its default rules, from how profits are split to how a member leaves. Without one, the default rules apply, and they may not match what you and your co-owners expect. Even a single-member LLC benefits from a short agreement, because it is the first thing a bank or a court looks at when deciding whether the company is genuinely separate from you.

Open the bank account in the LLC's exact legal name, with the EIN, and run every business payment through it. Mixing personal and business funds is the most common reason a court is willing to look past an LLC's liability shield.

Beneficial ownership reporting. Since FinCEN's March 2025 interim final rule, companies formed in the United States do not have to file beneficial ownership information reports, so a new South Carolina LLC has no BOI filing (current position: Not required for US-formed companies).

Step 5: register with SCDOR before you sell or hire

Most tax registrations happen in one place: MyDORWAY, the South Carolina Department of Revenue's online portal. Create an account and use the business tax application to open each account you need.

Retail license and sales tax. If you sell tangible goods at retail, including online sales delivered in the state, you need a retail license. The fee is $50 for each location, and the license does not expire. You only update it if the business moves. The state sales and use tax rate is 6%, and counties can add local sales taxes with voter approval, so the rate your customer pays depends on where the sale happens. Returns are normally monthly, due on the 20th of the following month, and SCDOR can approve quarterly or annual filing for smaller accounts.

Artists and crafters. Someone who sells only at craft shows and festivals may need the separate artist and craftsman license instead of a full retail license, but only once they sell at those events more than four times in a fiscal year. If you also sell from a shop or website, get the retail license.

Withholding. If you have employees, register for South Carolina withholding on MyDORWAY and file the returns it assigns. Separately, register with the South Carolina Department of Employment and Workforce for state unemployment insurance once your payroll meets its liability tests.

The annual report question, answered properly

Many guides say South Carolina LLCs file no annual report. That is true for most of them, but not all.

LLCs taxed as a sole proprietorship or partnership. Chapter 44 contains no annual report requirement and no annual state fee for LLCs. There is nothing to file with the Secretary of State each year to stay in good standing. Your ongoing duties are tax filings, keeping an agent on record and renewing local licenses.

LLCs taxed as corporations. If you elect C corporation or S corporation treatment with the IRS, South Carolina treats the company as a corporation for tax purposes. SCDOR's instructions for Form CL-1, the initial annual report of corporations, say LLCs should complete it only if they are taxed as a corporation. You submit the CL-1 with a $25 minimum license fee. If you did not file it with the Secretary of State at formation, it goes to SCDOR within 60 days after you start business in the state. Filing late can bring interest, a late-file penalty of 5% a month up to 25%, and a late-pay penalty of 0.5% a month up to 25%.

After that first year, a corporately taxed LLC files an annual report with its South Carolina corporate income tax return. Section 12-20-20 sets the due date as the 15th day of the fourth month after the tax year ends, which is April 15 for a calendar-year company. The license fee under section 12-20-50 is $15 plus $1 per $1,000 of capital stock and paid-in surplus (minimum $25). For a small LLC with modest capital, that usually means the $25 minimum.

What can still get an LLC dissolved. Under section 33-44-809, the Secretary of State can start administrative dissolution if the company fails to pay a fee, tax or penalty within 60 days of its due date. The office serves notice and the company has 60 more days to fix the problem. If it does not, the LLC is dissolved and can only wind up its affairs. Section 33-44-811 allows reinstatement within two years for a $25 fee, with a Department of Revenue certificate showing taxes are paid. Reinstatement is backdated to the dissolution date.

A South Carolina LLC's calendar

Formation

Articles filed; $110 paid; EIN obtained

Before first sale

MyDORWAY registration and $50 retail license per location

Within 60 days of starting (corporate tax only)

Form CL-1 with $25 minimum license fee

20th of each month

Sales tax return for the previous month (monthly filers)

April 30

City and county business licenses renew, based on last year's gross income

April 15

Owners' income tax returns; corporate return and annual report for calendar-year corporate filers

Local business licenses: one renewal date statewide

South Carolina has no general statewide business license, but most cities and many counties levy a business license tax. In 2020 the General Assembly passed the Business License Tax Standardization Act, codified at section 6-1-400, and it has applied to every local government that levies the tax since 2022.

The main rules are the same everywhere. A license covers a twelve-month year from May 1 to April 30, and it must be renewed by April 30. If the tax is unpaid before May 1, the city or county can add penalties. The tax is based on your gross income for the previous calendar year or fiscal year. A business that is just starting pays on its estimated gross income for the rest of the license year. Wholesalers are exempt unless they keep a warehouse or distribution site in the jurisdiction.

Rates, classes and minimum charges still vary by city and county. A business inside city limits usually needs a city license, while one in an unincorporated area may need a county license instead. Ask the business license office where your business is located. The Municipal Association of South Carolina runs an online renewal center that lets businesses renew licenses for several participating cities at once.

Professional and trade licences are a separate layer. Contractors, cosmetologists, real estate agents and many health professionals need a state licence from the relevant board before they can work, regardless of the LLC.

How a South Carolina LLC is taxed

Income tax. A single-member LLC's profit goes on its owner's return, and a multi-member LLC files a partnership return and issues K-1s. South Carolina gives pass-through owners a choice: under section 12-6-545, you can elect to pay a flat 3% on "active trade or business income" from the LLC instead of the regular individual rates. The catch is that amounts reasonably related to your own personal services, including guaranteed payments, do not count, and if you don't pay yourself reasonable compensation the law presumes all of your income is for personal services. The election helps most where the LLC earns profit from capital, staff or equipment rather than only the owner's labour. Ask your tax preparer to run the numbers both ways each year, because the election is annual.

Federal self-employment tax applies to the profits of a member who works in the business, just as it would for a sole proprietor. An S corporation election can reduce it once profits are high enough to justify a salary and payroll costs; see our LLC vs S corp guide and how to pay yourself from an LLC.

Sales tax is collected from customers at 6% plus any local tax, and remitted with your returns. Use the sales tax calculator to price items with tax included.

What it costs: a worked first-year budget

The table shows three realistic South Carolina LLCs. State fees are statutory; the agent and local license lines are estimates and are labelled as such.

Why the local license line is an estimate. Every city sets its own rate classes on gross income, so a figure that holds for one city is wrong for the next. The amounts above are placeholders to show scale; get the real figure from your city's business license office before budgeting.

Year two and after. For an LLC taxed as a partnership or disregarded entity, the state charges nothing to stay registered. Your recurring costs are the local business license each April 30, any registered agent service and tax preparation. That is the main reason South Carolina's long-run cost is lower than neighbouring North Carolina, where an LLC pays an annual report fee every year; compare it in our North Carolina LLC guide.

A corporately taxed LLC adds the $25 CL-1 license fee in year one and at least the same minimum license fee with each annual report after that, plus the cost of a corporate tax return.

Worked examples

A Columbia bookkeeping consultant. Tanya files articles online on March 3, 2026, naming herself as agent at her home office and paying $110. She gets her EIN the same afternoon and opens a bank account the next week. She sells only services, so she has no retail license, but the City of Columbia business license office tells her she needs a city license, calculated on her estimated income for the rest of the license year. She renews it by April 30 the following year based on her actual gross income.

A Greenville gift shop that reserved its name. Marcus reserves "Upstate Makers LLC" in January for $25 while he negotiates a lease, then files his articles in March, well inside the 120 days window. Before opening he registers on MyDORWAY, pays the $50 retail license and starts collecting 6% plus Greenville County's local tax. When he opens a second location in Spartanburg, he buys a second retail license for that address.

A Charleston LLC that elects S corporation status. Dana's café LLC elects S corporation treatment from its first year. Because it is now taxed as a corporation, she files the CL-1 with the $25 minimum license fee within 60 days of opening, then files the SC S corporation return with its annual report each spring. Had she stayed a disregarded entity, neither filing would apply.

South Carolina LLC launch checklist

0/11

• Name searched on the Secretary of State's entity database
• Agent chosen, with a South Carolina street address
• Articles of organization filed and $110 paid
• EIN obtained from the IRS
• Operating agreement signed by all members
• Business bank account opened in the LLC's name
• MyDORWAY account opened; retail license bought for each location (if selling goods)
• Withholding and unemployment insurance registration once you hire
• City or county business license obtained
• Form CL-1 filed within 60 days (only if taxed as a corporation)
• Calendar reminder: local licenses renew by April 30

Share Print

Common mistakes and how to fix them

Assuming "no annual report" means "no filings at all". The Secretary of State won't send you a yearly bill, but SCDOR returns, the local business license and, for corporately taxed LLCs, the annual report with the corporate return are all real deadlines. Missed tax payments are exactly what triggers administrative dissolution under section 33-44-809.

A name that isn't distinguishable. The most common rejection. Search first, and if the filing comes back, choose a genuinely different name rather than adding "The" or changing the ending.

Using a mailbox store or out-of-state address for the agent. The agent needs a South Carolina street address where someone can accept papers. Fix a bad address with a $10 statement of change.

Electing S corporation status and forgetting the CL-1. The IRS election changes your South Carolina filings. If you elect corporate taxation, file the CL-1 within 60 days of starting business to avoid penalties.

Opening a second shop on the first retail license. Each location needs its own $50 retail license.

Paying look-alike "compliance" notices. Private companies mail official-looking offers for certificates or "annual compliance" filings. A certificate of existence costs $10 from the Secretary of State, and a partnership-taxed LLC has no annual report to file.

Ignoring a dissolution notice. If you receive one, pay what is owed within the 60-day window. After dissolution you have two years to reinstate for $25 plus the taxes due; after that, you may have to form a new LLC.

Out-of-state LLCs doing business in South Carolina

An LLC formed in another state that transacts business in South Carolina needs a certificate of authority, which costs $110. It must keep an agent for service of process in the state, just like a domestic LLC. Under section 33-44-1008, a foreign LLC without a certificate cannot bring a lawsuit in a South Carolina court until it registers, although its contracts remain valid. If you live in South Carolina, forming here in the first place avoids paying two states.

Official links

• SC Secretary of State — online filingsFile articles of organization, statements of change and certificates
• SC Code Title 33, Chapter 44 (LLC Act)Fees (§33-44-1204), agent rules (§33-44-108), dissolution (§33-44-809)
• SCDOR MyDORWAYRegister for sales tax, withholding and the retail license
• SCDOR Retail License$50 per location
• SCDOR Form CL-1Only for LLCs taxed as corporations
• SC Code §6-1-400 (business license standardization)May 1 – April 30 license year
• IRS — Apply for an EINFree

What to do next

Check your name with the LLC name checker, then file your articles and get your EIN the same day. Use the startup cost calculator to fold the $110 filing, licenses and agent costs into your opening budget. If you still aren't sure an LLC is the right structure, read LLC vs sole proprietorship before you file.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

How much does it cost to start an LLC in South Carolina?

The Secretary of State charges $110 to file articles of organization under section 33-44-1204 of the SC Code. Optional extras are a $25 name reservation and a $10 certificate of existence. If you sell taxable goods, add the $50 SCDOR retail license per location, plus your city or county business license, which depends on your gross income.

Does a South Carolina LLC have to file an annual report?

Not with the Secretary of State. A South Carolina LLC taxed as a sole proprietorship or partnership files no annual report and pays no annual state fee to keep its registration active. An LLC that elects to be taxed as a corporation files Form CL-1 with a $25 minimum license fee at the start, then an annual report and license fee with its SC corporate return each year.

Can I be my own registered agent in South Carolina?

Yes. Section 33-44-108 allows any individual who lives in South Carolina to serve, including you or another member. A domestic corporation, another LLC or an entity authorized to do business in the state can also serve. The agent needs a South Carolina street address where legal papers can be delivered, and that address is public.

How long does it take to form an LLC in South Carolina?

Online filings through the Secretary of State's portal are usually processed faster than paper, but the office does not publish a guaranteed turnaround, so check the current processing times on sos.sc.gov. If you need the LLC to start on a set date, the articles can name a delayed effective date up to 90 days after filing.

Do I need a business license for a South Carolina LLC?

There is no general statewide business license. Most cities and counties levy a local business license tax based on gross income, and since 2022 they all use a standardized license year that runs May 1 to April 30, with renewal due by April 30. Separately, sellers of taxable goods need an SCDOR retail license, and many trades need a state professional licence.

What taxes does a South Carolina LLC pay?

A single-member LLC is taxed with its owner and a multi-member LLC as a partnership, so profits go on the owners' returns. Owners can elect a 3% South Carolina rate on qualifying active business income instead of the regular individual rates. Sales tax starts at 6% statewide plus local taxes, and employers register for withholding and unemployment insurance.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.SC Code Title 33, Chapter 44 — Uniform Limited Liability Company Act of 1996 — South Carolina Legislature · accessed 9 October 2026
2. 2.Form CL-1 — Initial Annual Report of Corporations — South Carolina Department of Revenue · accessed 9 October 2026
3. 3.Retail License — South Carolina Department of Revenue · accessed 9 October 2026
4. 4.Sales & Use Tax — South Carolina Department of Revenue · accessed 9 October 2026
5. 5.SC Code Title 12, Chapter 20 — Corporate license fees — South Carolina Legislature · accessed 9 October 2026
6. 6.SC Code Title 12, Chapter 6 — Income tax (§12-6-545) — South Carolina Legislature · accessed 9 October 2026
7. 7.SC Code §6-1-400 — Business license tax standardization — South Carolina Legislature · accessed 9 October 2026
8. 8.SC Business License Tax Standardization Act — Municipal Association of South Carolina · accessed 9 October 2026
9. 9.Get an employer identification number — IRS · accessed 9 October 2026
10. 10.Beneficial Ownership Information — FinCEN · accessed 9 October 2026