Key Takeaways

  • The mandatory South Carolina LLC cost starts with a $110 filing fee for the Articles of Organization, plus a $15 electronic records fee.
  • Additional expenses include name reservation ($25), registered agent services ($0–$400/year), operating agreement preparation ($0–$1,000), and local business licenses.
  • South Carolina does not require annual reports for most LLCs, but some may owe a corporate license fee (minimum $25) if taxed as a corporation.
  • Optional costs such as trademark registration, name reservation, and DBA filings can help protect your business name and brand.
  • Many LLC formation-related expenses — including filing fees and registered agent costs — are tax-deductible.

South Carolina LLC formation involves choosing a business name, filing the Articles of Organization, and obtaining necessary licenses and permits to operate the business.

Forming a South Carolina LLC: An Overview

Forming an LLC comes with several benefits. For instance, it protects you from personal liability for business loans and liabilities. The South Carolina Code of Laws under the Uniform Limited Liability Company Act governs the formation and operation of LLCs in South Carolina.

There is minimal paperwork involved in forming an LLC in South Carolina. You just need to complete a few forms. Begin by choosing a unique name for your LLC. Reserve it if necessary. Next, file the Articles of Organization with the Secretary of State. You must also obtain the required business permits, IDs, and licenses before commencing your operations.

Understanding the Total South Carolina LLC Cost

When forming an LLC, understanding the total South Carolina LLC cost is essential to budgeting effectively. While the state’s filing fee of $110 for the Articles of Organization is the primary cost, other required and optional expenses can significantly impact your startup budget.

Below is a breakdown of typical costs associated with starting and maintaining an LLC in South Carolina:

  • Articles of Organization filing fee: $110, plus a $15 electronic records fee if filing online.
  • Registered agent fee: $0 if you serve as your own agent, or between $199 and $400 annually if hiring a professional service.
  • Name reservation fee: $25 (optional, but recommended if you want to secure a name before filing).
  • Operating agreement: Free if drafted yourself, or up to $1,000 if prepared by an attorney or professional service.
  • DBA (Doing Business As): Not required for LLCs in South Carolina, but partnerships can file one for $10.
  • Local business license: Costs vary depending on the city or county and type of business.
  • Corporate license fee (if applicable): LLCs taxed as corporations may owe a fee based on their business value, with a minimum of $25 per year.

Most of these formation expenses — including filing fees, registered agent services, and legal documentation — can be deducted as startup costs when you file your business taxes.

Choose a Business Name

Choose a unique name suitable for your business. It must end with something like Limited Liability Company, LLC, or L.L.C. Also, it must be different from and not confusing with the names of existing businesses registered in South Carolina.

Conduct a Name Search

Perform a name search to confirm whether your proposed business name is available for registration. The business name database of the Secretary of State is accessible online. Additionally, you may want to check whether a matching domain name is available for developing a business website.

Reserve Your Name

If your business name is available for registration, you may want to reserve it with the Secretary of State so that no one else uses it while you prepare and file your Articles of Organization. In South Carolina, you can reserve a business name for 120 days. To do this, you need to submit a name reservation application and pay a $25 fee.

Also, consider registering your trademark. This offers an additional layer of protection if others try to sell goods or services in your name.

Additional Filing and Name-Related Costs

Securing and protecting your LLC’s name may involve optional but beneficial costs:

  • Name reservation: $25 for a 120-day reservation period.
  • Trademark registration: While not required, registering a state or federal trademark can provide exclusive rights to your name and brand, with costs ranging from $50 to $250+ depending on the jurisdiction.
  • Domain name: Reserving a domain name for your website typically costs $10–$50 per year.

Investing in these name protections ensures that your brand is safeguarded against competitors and strengthens your business’s market presence.

File the Articles of Organization

The next step is to prepare and file Articles of Organization. You can download and print a form from the Secretary of State's website, and submit it personally in the office, send it by mail, or even submit it online. For online submission, you must create a user account.

You must provide the following information in the Articles of Organization:

  • Name of your LLC
  • Your business address
  • Name and physical address of your statutory agent, who has consented to receive service of process on behalf of your company
  • Names, addresses, and signatures of all the organizers
  • Names and addresses of all the managers
  • If you would like to create the LLC from a later date, the effective date from which it would come into effect
  • Whether you are forming the LLC for a specific duration
  • Whether the LLC is member-managed or manager-managed
  • Liability of the members

The state filing fee for Articles of Organization is $110. Additionally, you must pay $15 for as Electronics Records Access fee. The office of the Secretary of State takes about 7-10 working days to process your Articles of Organization.

Note that you must appoint a state-registered agent for service of process before filing your Articles of Organization.

Prepare an Operating Agreement

An LLC operating agreement is an internal document that outlines the governance and operating procedures of your company. Although the state of South Carolina does not require that you draft an operating agreement, it is safe from a legal standpoint to have one. This document should include the following information:

  • Ownership percentage of each member
  • Voting power, rights, and responsibilities of members
  • Procedures for the company's day-to-day functioning
  • Procedures for convening and holding meetings
  • Rules for the sale and transfer of members' interests in the company

Complete Other Requirements

After you have formed an LLC, get an Employer Identification Number (EIN). However, in the case of a single-member LLC, you can use your Social Security Number in place of an EIN. If your company collects sales tax or has employees, you must obtain a state tax ID from the state Department of Revenue.

Finally, obtain all the necessary licenses and permits applicable to your industry. In South Carolina, you usually need to get a business license from the municipality in which you operate your business.

Ongoing Costs and Compliance Considerations

Once your LLC is established, ongoing compliance requirements and related costs are relatively low compared to other states. South Carolina does not require annual reports for standard LLCs, which reduces long-term costs. However, certain ongoing expenses may still apply:

  • Registered agent renewal: If using a service, expect an annual fee of $199–$400.
  • Local licenses and permits: Renewal fees vary by industry and location.
  • Corporate license fee: If your LLC elects to be taxed as a corporation, a minimum $25 fee is due annually based on company value.

Additionally, many LLC owners choose to budget for periodic legal and tax consultations to maintain compliance and optimize tax strategies.

Frequently Asked Questions

  1. How much does it cost to start an LLC in South Carolina?
    The base cost is $110 for the Articles of Organization plus a $15 electronic filing fee. Additional optional costs, such as name reservation and registered agent services, can increase total startup costs.
  2. Are there any annual fees for an LLC in South Carolina?
    There are no annual report fees for standard LLCs. However, if your LLC is taxed as a corporation, you must pay a corporate license fee, with a minimum of $25 annually.
  3. Is hiring a registered agent mandatory?
    Yes, every LLC must have a registered agent. You can serve as your own agent for free or hire a service for about $199–$400 per year.
  4. Can I deduct LLC formation costs on my taxes?
    Yes. Many formation expenses — including filing fees, registered agent costs, and legal fees — are considered tax-deductible startup costs.
  5. Do I need an operating agreement for my South Carolina LLC?
    While not legally required, an operating agreement is highly recommended. It can be created for free by the members or prepared by a legal professional for up to $1,000.

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