Key Takeaways

  • To form an LLC in South Carolina, you must choose a compliant business name, designate a registered agent, and file Articles of Organization with the Secretary of State.
  • The filing fee is $110, and processing typically takes 1–2 business days.
  • An Operating Agreement is not legally required but is strongly recommended, especially for multi-member LLCs.
  • Businesses may need an EIN (from the IRS) and a South Carolina Tax ID (from the Department of Revenue) if they hire employees or collect sales tax.
  • Local business licenses are required since South Carolina does not have a statewide license.
  • LLCs hiring employees must complete additional steps, including E-Verify and registering for unemployment insurance.
  • Ongoing compliance includes annual reports (only for taxed-as-corporation LLCs) and keeping the business in good standing with state agencies.
  • South Carolina offers low formation costs, flexible management structures, and strong liability protection for LLC owners.

Forming an LLC in South Carolina

How to get a LLC in South Carolina is a question that many aspiring business owners may have pondered, and it pertains to setting up a limited liability in the state, which is a multi-step process whose steps range from choosing a name for your business to getting a registered agent, an operating agreement covering multiple members, and more.

An LLC, or limited liability company, is a business form that can offer numerous advantages for the new business owner. For example, an LLC protects you as the owner from any personal liability related to any legal or debt-related obligations your company may have. Another bonus is that setting up an LLC requires fewer steps than other business forms, and it can be created in South Carolina by doing the following:

  1. Select a name. Ideally, it should be short, easy to remember, and have a direct relation to your business activity. Your name should also adhere to South Carolina’s naming guidelines. Some words, like "Attorney," are restricted, and others, like "Secret Service," are forbidden. Your name also must have some variation of "limited liability company" in it and it cannot be the same as any other LLC name. The South Carolina LLC name search can help with this process. Additionally, you may want to see if an email and web address similar to your LLC name can be acquired. You may not need them now, but you might later.
  2. Select a registered agent. This is an individual or business entity that sends and accepts legal documents like state filings and service of process papers on your behalf. They must be either a South Carolina resident or an entity authorized to conduct business in the state, but both must have a street address in the state. You can be your own registered agent if you wish, or it can be someone else in your LLC.
  3. File articles of organization. These should include such information as your business name and address, your registered agent’s name and address, how many members are involved and what their names and addresses are, and how your LLC will be managed. A PDF form for this can be found here. It can be filed online or by mail to the Secretary of State's office, and the filing fee is $110. Processing time is generally one to two business days. Expedited processing is not available.
  4. Set up an operating agreement. This legal document outlines the operating procedures and ownership of your LLC, as well as the ownership percentages, profit and loss shares, rules for meetings and daily LLC management, and how the departure of a member is handled. South Carolina does not require this document, but it is recommended, especially for multi-member LLCs. This document does not need to be filed with the articles of organization. South Carolina recognizes it as a governing document.
  5. Obtain an employer identification number (EIN). This functions like a social security number for your LLC and is necessary for filing taxes unless your LLC is single-member, without employees, and not taxed as a corporation. Some banks may also require it for opening business checking accounts. It can be obtained for free from the IRS.
  6. Obtain a state tax ID. This is necessary if you have employees and are registered with South Carolina’s Department of Revenue or if you collect sales tax. This can be registered for at the MyDORWAY website.
  7. Obtain local business permits or licenses. Because South Carolina does not have a statewide business license, you will need to acquire a business license in any municipality in which you conduct business. The South Carolina One Stop website can assist you with this. LLCs that offer a specific professional service must contact the appropriate South Carolina licensing boards to obtain the permits or licenses they need.
  8. Take additional employee-related steps. If you intend to have employees, you will have to get a withholding number from the Department of Revenue, unemployment insurance from South Carolina’s Department of Employment and Workforce, and certify your employees’ authorization to work with E-Verify. You will also have to retain Form I-9 for every employee and report any new employees to the Department of Social Services.

Taxes for South Carolina LLCs

LLCs in South Carolina enjoy flexible tax treatment. By default, the IRS classifies a single-member LLC as a disregarded entity and a multi-member LLC as a partnership. However, LLCs can elect to be taxed as an S Corporation or C Corporation.

Key tax considerations for a South Carolina LLC include:

  • State Income Tax: LLC income passes through to members, who report it on their personal state tax returns. South Carolina has a graduated income tax rate ranging from 0% to 6.5%.
  • Sales and Use Tax: Businesses selling goods or taxable services must collect and remit sales tax (currently 6%, with potential local add-ons).
  • Employer Taxes: If you have employees, you must withhold state income tax, pay unemployment insurance, and comply with workers’ compensation requirements.
  • Corporate-Level Taxes: If your LLC elects corporate taxation, you must file the appropriate business tax returns and pay the 5% corporate income tax rate.

It’s recommended to work with a tax professional to determine the best tax structure for your LLC South Carolina based on your business goals.

Benefits of an LLC in South Carolina

Starting an LLC in South Carolina comes with several advantages for business owners:

  • Personal Liability Protection – Members’ personal assets are shielded from business debts and lawsuits.
  • Low Formation Costs – At $110, South Carolina’s filing fee is lower than many neighboring states.
  • Pass-Through Taxation – By default, profits and losses pass through to members’ personal tax returns, avoiding double taxation.
  • Flexible Management – LLCs may be member-managed or manager-managed, allowing owners to choose the best structure.
  • Business Credibility – Operating as an LLC can build trust with customers, suppliers, and financial institutions.
  • Privacy Options – Unlike corporations, South Carolina LLCs do not need to list directors or officers, limiting the amount of personal information publicly available.

These benefits make the LLC a popular choice for small businesses, startups, and professionals across South Carolina.

South Carolina LLC Annual Requirements

Unlike some states, South Carolina does not require most LLCs to file an annual report. However, if your LLC elects to be taxed as an S Corporation or C Corporation, you must file an annual corporate report with the South Carolina Department of Revenue (Form CL-1).

Other ongoing requirements include:

  • Registered Agent Maintenance: You must continuously maintain a registered agent with a physical address in the state.
  • Business Licenses and Taxes: Renewal of local business licenses and timely payment of state taxes are required to stay in compliance.
  • Employer Obligations: Businesses with employees must maintain tax withholdings, file quarterly employment reports, and comply with E-Verify requirements.

Failure to meet these requirements can result in penalties, administrative dissolution, or loss of good standing with the state.

South Carolina LLC Costs

Forming an LLC in South Carolina is relatively affordable compared to other states. The primary cost is the $110 filing fee for the Articles of Organization, payable to the Secretary of State. If you file online, payment is made by credit card, while mail filings can include a check. South Carolina does not offer expedited processing; however, online filings are typically processed within 24–48 hours.

Other potential costs include:

  • Registered Agent Fees (if you hire a professional service): Typically $100–$300 annually.
  • Local Business License Fees: Vary by municipality and type of business.
  • Professional Licenses: Required for certain professions such as contractors, accountants, or healthcare providers.

Frequently Asked Questions

  1. How much does it cost to start an LLC in South Carolina?
    The filing fee is $110 for the Articles of Organization. Additional costs may apply for a registered agent, licenses, or permits.
  2. Does South Carolina require LLCs to file annual reports?
    Not usually. Only LLCs taxed as corporations must file an annual report with the Department of Revenue.
  3. How long does it take to form an LLC in South Carolina?
    Online filings are processed in 1–2 business days, while mail filings may take longer.
  4. Do I need a business license for my LLC in South Carolina?
    Yes. South Carolina requires a local business license in every municipality where your LLC operates.
  5. What taxes will my South Carolina LLC pay?
    LLCs are subject to state income tax, sales tax (if applicable), and employer taxes if they hire employees. Corporate-taxed LLCs also pay a 5% corporate income tax.

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