South Carolina Annual Report: Everything You Need to Know
You should file your company's first South Carolina annual report less than 60 days from the day the business started.3 min read
2. South Carolina Annual Reports for LLCs
3. How LLCs Are Taxed
4. Costs for Filing the Annual Return and Renewal
5. South Carolina Business Compliance
6. Due Dates for Taxes in South Carolina
7. Penalties for a Delinquent Annual Report
8. Who Should File Tax Returns and Annual Renewals?
9. South Carolina Corporation Requirements
South Carolina Annual Report
You should file your company's first South Carolina annual report less than 60 days from the day the business started. It registers your company with the S.C. Department of Revenue. Keep filing annual reports as part of your business's tax return.
South Carolina Annual Reports for LLCs
Most LLCs are taxed as sole proprietorships or partnerships, so they don't have to submit an initial or annual report. However, an LLC that's taxed as a C-Corporation or an S-Corporation should file Form CL-1, the Initial Report of Corporations. The filing fee for the initial report is part of the fee for the articles of incorporation when you start your business. After that, use Form SC 1120 or Form SC 1120S to file your annual report with the South Carolina Department of Revenue. You'll need a South Carolina State Tax ID Number to submit the report.
How LLCs Are Taxed
The IRS taxes single-member LLCs like sole proprietorships, and multi-member LLCs are treated like partnerships. You can also choose C-corporation or S-corporation taxation. An S-corporation setup for your LLC will help you save on self-employment taxes if your net income or your income after expenses is more than about $65,000 per year. Speak to an expert to find out which one is best for you.
Costs for Filing the Annual Return and Renewal
There's no fee for annual reports, but the fee for renewing your business license is $100 for most companies. It's $50 for non-profit corporations, and they don't need to file an annual report.
South Carolina Business Compliance
The South Carolina Secretary of State doesn't have any requirements for an annual report, but businesses must file annual returns with the Department of Revenue. If these filings become delinquent, the Secretary of State could dissolve your company. Most corporations in the state should file SC 1120, the Corporation Tax Return. It includes an annual report. If your LLC is taxed as an S corporation, file form SC 1120S with the Department of Revenue. Nonprofits should file form SC 990-T instead.
Limited Liability Partnerships or LLPs should resubmit the application for registration yearly in person or through the mail. Pay the filing fee to the South Carolina Secretary of State. All partnerships, including LPs or limited partnerships, must also turn in the Partnership Return SC 1065 to the Department of Revenue once per year. Corporations should file the SC 1120 Corporate Tax Return instead.
Every year, nonprofits need to register with the Public Charities Division of the Secretary of State's office. They should file the Registration Statement for a Charitable Organization along with the Annual Financial Report Form online, by mail, or by fax.
Due Dates for Taxes in South Carolina
Here are the most common due dates for filing state taxes in South Carolina:
- March 15th for corporations
- April 15th for the Secretary of State and May 15th at the Department of Revenue for nonprofits
- The date an LLP formed for the Secretary of State and April 15th for the Department of Revenue
- April 15th for LPs or limited partnerships
Penalties for a Delinquent Annual Report
For every month your tax return is late, the Department of Revenue imposes a 5 percent penalty. The South Carolina Secretary of State can even dismantle your corporation and revoke its charter if you don't file your return and make the necessary payments. This would make doing business in South Carolina illegal.
Who Should File Tax Returns and Annual Renewals?
Renewals and annual reports should be signed by the CFO and the CEO. A corporate officer needs to sign returns meant for the Department of Revenue, and the incorporator and a corporate officer must sign form CL-1.
South Carolina Corporation Requirements
After forming a corporation, you should store copies of corporate records:
- The company's Articles of Incorporation
- Resolutions adopted by the board of directors
- Permanent records of actions by the shareholders without a meeting
- Written communications to shareholders for the last three years
- An alphabetical list of the names and addresses of all shareholders with the number and types of shares they have
- The names and business addresses of the directors and officers
- The last annual report filed
- Federal and state income tax returns for the past 10 years.
If you need help with your South Carolina annual report, you can post your legal need or post your job on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.