Forming an LLC in South Carolina costs $110 to file Articles of Organization with the South Carolina Secretary of State, with online approval through SC Business Filings Online in 1 business day. The standout feature: no annual report required for LLCs taxed as partnership or disregarded entity. Only LLCs that elect S-corp or C-corp taxation file an annual report ($25). South Carolina has no LLC franchise tax for pass-through entities, and the top individual income tax is 6.2% (scheduled to keep dropping). South Carolina's economy is anchored by automotive (BMW's only U.S. assembly plant is in Spartanburg, plus Volvo in Charleston), aerospace (Boeing's 787 Dreamliner final assembly is in North Charleston), the Port of Charleston (one of the fastest-growing on the East Coast), and tourism (Charleston, Myrtle Beach, Hilton Head). For founders in automotive, aerospace, or logistics, SC offers strong industry depth at low ongoing cost.
Why form your LLC in South Carolina
BMW, Boeing, and a major auto/aerospace cluster around Greenville-Spartanburg. The Port of Charleston is one of the fastest-growing on the East Coast.
- No annual report for LLCs taxed as partnership/disregarded entity
- Fast 1 business day online approval
- No LLC franchise tax for pass-through entities
- BMW's only U.S. assembly plant (Spartanburg)
- Boeing 787 Dreamliner final assembly (North Charleston)
- Port of Charleston — fastest-growing East Coast port
Best fit for: Automotive (BMW) · Aerospace (Boeing) · Logistics (Port of Charleston)
Don’t want to file yourself? Northwest Registered Agent files your South Carolina LLC for $39 + state fee and acts as your registered agent the first year free.
How to form a South Carolina LLC in 7 steps
- 1Search the South Carolina business name database
Use the SC Secretary of State Business Filings Online to search names. The name must include "Limited Liability Company", "L.L.C.", or "LLC". Reserve a name for $25 (held 120 days) if needed.
- 2Appoint a South Carolina registered agent
Required to have a physical South Carolina street address. Can be the LLC owner if they're an SC resident, or a commercial registered agent service.
- 3File Articles of Organization
File online through SC Business Filings Online for $110. Standard processing is 1 business day. The Articles include LLC name, registered agent, principal office, and management structure.
- 4Draft an Operating Agreement
Not required by SC law but strongly recommended. Defines membership interests, voting, profit/loss splits, and dissolution. Banks routinely ask for it.
- 5Apply for an EIN with the IRS
Free at irs.gov, takes 10 minutes online. Required for opening a business bank account, registering with the SC Department of Revenue (SCDOR), and filing federal taxes.
- 6Register with the SC Department of Revenue (SCDOR)
Register through MyDORWAY for sales and use tax (if you sell taxable goods/services), withholding tax (if you have employees), and any industry-specific accounts.
- 7Get local business license — and that's it for state filings
Most SC cities require a local business license (Charleston, Columbia, Greenville, Myrtle Beach). Then open business banking. Since SC has no annual report for default-taxed LLCs, your only ongoing state-level obligations are tax filings and maintaining your registered agent.
File directly with South Carolina Secretary of State →
South Carolina LLC taxes & compliance
No annual report for default-taxed LLCs is rare and valuable. State income tax tops at 6.2% but is on a downward path.
Ongoing compliance checklist
- No annual report for LLCs taxed as partnership/disregarded entity
- $25 annual report ONLY if you elect S-corp or C-corp taxation
- No franchise tax for pass-through LLCs
- Sales and use tax filings (SCDOR)
- Withholding tax filings if you have SC employees
- Federal income tax (Form 1065 multi-member, Schedule C SMLLC)
Registered agent rules
Required — SC street address.
Hidden costs new South Carolina LLC owners forget
- $25 annual report ONLY if taxed as S-corp/C-corp
- Combined sales tax averages 7.5% (6% state + local)
- Top individual income tax of 6.2%
- Foreign LLC qualification: $110
- Local business licenses required in many cities
- Some industries require state-specific licensing
Should you use a formation service in South Carolina?
You can absolutely file directly with the South Carolina Secretary of State for the $110 state fee. The reasons most South Carolina owners use a service anyway are (1) registered-agent privacy — keeping their home address off public filings — and (2) calendar reminders for ongoing compliance.
Have Northwest form your South Carolina LLC for $39 + state fee
Free registered agent for the first year. Real human support. Privacy-by-default — your home address stays off public filings.
South Carolina LLC: frequently asked questions
How much does it cost to start an LLC in South Carolina?
SC SOS charges $110 to file Articles of Organization. There's no annual report for LLCs taxed as partnership or disregarded entity (the default for most LLCs). Realistic year-one cost: $110. Ongoing yearly cost: $0 in state filing fees for default-taxed LLCs — making SC one of the cheapest states to maintain an LLC.
How long does it take to form an LLC in South Carolina?
Online filings through SC Business Filings Online approve in 1 business day. Mail filings take 5–7 business days. SC does not need a separate expedited tier — online is already fast.
Does South Carolina have an LLC annual report?
Not for default-taxed LLCs (those taxed as partnership or disregarded entity). Only LLCs that elect S-corp or C-corp taxation file an annual report ($25 fee). This is rare and valuable — most U.S. states require all LLCs to file annually regardless of tax election.
Does South Carolina have an LLC franchise tax?
No franchise tax for LLCs taxed as pass-through. LLCs that elect C-corp taxation are subject to SC corporate income tax (5%). Owners of pass-through LLCs pay personal income tax (graduated up to 6.2%) on their share of LLC profits.
What's the South Carolina LLC tax rate?
SC has graduated individual income tax topping at 6.2% — though it's on a path to drop. Sales tax is 6% statewide plus local add-ons (combined averages 7.5%). LLCs taxed as pass-through don't owe state-level entity tax.
Can a non-resident form an LLC in South Carolina?
Yes. SC has no residency requirement for LLC members or managers. You only need an SC-based registered agent. Out-of-state owners commonly use a commercial registered agent service.
Is South Carolina a good state to form an LLC?
Yes — particularly for SC residents and businesses tied to automotive (BMW, Volvo), aerospace (Boeing 787), Port of Charleston logistics, or tourism. The combination of $110 filing, no annual report (for default-taxed LLCs), no franchise tax, and 1-day approval makes SC exceptionally cost-efficient long-term.
Do I need a business license for an SC LLC?
SC does not have a state-level general business license, but most cities (Charleston, Columbia, Greenville, Myrtle Beach, Spartanburg) require a local business license — usually based on industry and gross receipts. Specific industries (real estate, contractors, food service, professional services) require state licensing.