Tax ID for LLC: Everything You Need to Know
The South Carolina File Number or State Tax ID Number is issued by the South Carolina Department of Revenue (SCDOR) and is used for filing company taxes. 3 min read
2. What Is Business Personal Property Tax?
3. How Do I Know When To Pay or File Other Taxes or Forms?
4. Recommendations for Tax Filings
The South Carolina File Number or State Tax ID Number is issued by the South Carolina Department of Revenue (SCDOR) and is used for filing company taxes. You can only obtain this unique number once the state has approved your LLC.
It consists of nine digits in total, but just the first seven are used for taxation purposes. You do, however, use the entire series of numbers in correspondence with the Department of Revenue. The format of the Tax ID Number issued is eight digits, followed by a hyphen, then the last number. Therefore the SCDOR assigns the file number as follows: 20345678-9
Before 2009, LLCs were required to provide a Power of Attorney to get a file number. However, after January 1, 2009, that is no longer mandatory. Although as a business owner, you are still required to have a Power of Attorney for any other discussions regarding taxpayer information.
What Happens If You Do Not Have a South Carolina File Number?
If you do not know what file number the Department of Revenue assigned to you, you can request it by calling (803) 896-1730 or emailing firstname.lastname@example.org. Be sure that you include the legal name of your business and Federal Tax ID Number when seeking the file number.
You can expect a response from the Department of Revenue within 24 hours of the request, provided you have previously filed for the South Carolina File Number with the SCDOR.
If you have more than three petitions to make for different file numbers, you must do so via email with an Excel-format spreadsheet attached. On the sheet, you want to indicate whether you need the file numbers for a partnership or corporation.
What Is Business Personal Property Tax?
If you have personal property in a business or you lease to a company, you are required in South Carolina to file a Business Personal Property Tax return. The tax filing applies to any fixtures, equipment, and furniture that is owned and utilized for the operation of a limited liability company. What you should not include in the return is the building, land, and inventory.
Once the business accounting period has ended, four months following that date is the deadline for the assessed 10.5 percent Business Personal Property Tax. For example, if the accounting year ends on December 31, then the due date is April 30.
The state sends an assessment to the registering county of the business. Afterward, the county sends the company a bill for the taxes that are due, which is done after September 1.
Ongoing payment is due to the county Treasurer either on January 15 of the following year or sooner. Payment for the Business Personal Property Tax should not be sent directly to the Department of Revenue, but a business owner can set up an account specifically for the Business Personal Property Tax through the mail or online.
If for whatever reason, a business owner neglects to file the return, an estimated amount will be determined and provided to the County Auditor with an additional late filing penalty fee of 10 percent. Should the SCDOR find the business to be delinquent, the South Carolina Secretary of State can administratively dissolve the LLC and shut it down.
How Do I Know When To Pay or File Other Taxes or Forms?
There may be instances when additional forms and taxes are due. The following circumstances could influence such a determination:
- The way in which the IRS taxes the business
- The industry of the company
- Location of the County where the firm is set up
- Whether employees exist
Some examples of these forms may include the following:
- Sales and use tax
- Single-Member LLC
- Multi-Member LLC
- Withholding tax
- Employer taxes
- Casual or use excise tax
- Rental surcharge
Recommendations for Tax Filings
In South Carolina, it can get complicated when calculating a business's tax obligations. Business owners are advised to seek help from a tax professional immediately once the LLC has been formed and approved. This way, a company can avoid unfortunate and business damaging situations that could arise from the improper handling of the filings. Having a tax professional can help an LLC remain in compliance with the State of South Carolina and can alternatively serve in an adviser's capacity for other business issues or questions that come up.
If you need help with a South Carolina File Number, you can post your legal need 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.