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.
How much does a South Carolina LLC cost?
Starting a South Carolina LLC runs $110 in Year 1 if you handle everything yourself — that single state filing fee covers your Articles of Organization with the Secretary of State, processed in 3-5 business days. Add a registered agent service and your first-year total climbs to roughly $259 ($110 + $149). South Carolina is one of the genuinely low-cost states: there is no annual report fee and no recurring state LLC tax, so your ongoing costs after Year 1 drop to just the registered agent renewal at ~$149/year. By Year 5, expect to spend approximately $706 total ($259 in Year 1, then $149 × 4). Compare that to California's $800 annual franchise tax, Tennessee's $300 annual fee, or New York's costly publication requirement — South Carolina has none of those traps. The main cost to watch is your registered agent: skipping a service means your personal address goes on the public record.
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.
Free tool
See the real 5-year cost of a South Carolina LLC
Filing fee · registered agent · annual report · franchise tax — all calculated, year by year.
Open cost calculator for South Carolina →South Carolina's municipal business license tax: the fee no one mentions
South Carolina is one of the few states that charges no annual report fee for LLCs — a genuine cost advantage over neighbors like Georgia ($50/yr) and North Carolina ($200/yr). But owners who stop there miss a significant local layer: nearly every South Carolina municipality levies its own annual business license tax based on prior-year gross receipts. Columbia, Charleston, Greenville, and Myrtle Beach each publish their own rate schedules and deadlines, typically April 30. Columbia's rates run roughly $0.20–$1.15 per $1,000 of gross revenue depending on business class; a $200,000-revenue LLC could owe $200–$400 to the city alone, entirely separate from any state filing. Because this tax is administered by individual cities and counties — not the Secretary of State — it never appears on state formation checklists, and many first-year owners discover the liability only when they receive a delinquency notice. South Carolina also imposes no franchise tax on LLCs at the state level, so the total state burden is genuinely low; the trap is entirely at the municipal tier.
Year 1: $110 (Articles of Organization) + $149 (registered agent) = $259 in fixed costs. Add your home city's business license tax — roughly $100–$400 for a modest-revenue LLC in Columbia or Charleston — bringing a realistic Year 1 total to $359–$659. By Year 5: approximately $855–$1,855 total (no state annual report fee ever, but four additional years of registered agent and municipal license fees).
Owners read that South Carolina has no annual report and assume ongoing costs end at the registered agent fee. In reality, any LLC doing business in a South Carolina city owes an annual municipal business license tax due April 30, calculated on prior-year gross receipts. Missing this deadline triggers late penalties of 5% per month in most municipalities. The obligation exists even if the LLC is registered elsewhere but operates locally.
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.
How much does it cost to form an LLC in South Carolina?
The South Carolina Secretary of State charges a $110 filing fee to form an LLC by submitting Articles of Organization. There is no additional processing or convenience fee when filing online through the SC Business One Stop portal. South Carolina does not charge an annual report fee, making it one of the more affordable states for ongoing LLC maintenance. Optional costs include a registered agent service (typically $49–$299 per year) and an EIN, which is free from the IRS.
Does South Carolina require an annual report or annual fee for LLCs?
South Carolina does not require LLCs to file an annual report, and there is no annual fee owed to the Secretary of State each year. This distinguishes SC from most states, which charge $25–$800 annually just to keep an LLC in good standing. The only recurring obligation is maintaining a registered agent and paying any applicable state taxes. This makes South Carolina an especially cost-effective state for small business owners over the long term.
Should I form an LLC or a corporation in South Carolina?
For most small businesses and startups in South Carolina, an LLC offers greater flexibility because it avoids double taxation and requires far less administrative formality than a corporation. South Carolina corporations are subject to a 5% corporate income tax on net income, and shareholders also pay personal income tax on dividends, creating a double-tax burden. An LLC taxed as a pass-through entity means profits flow directly to members' personal returns, taxed only once. If you plan to raise venture capital or issue multiple classes of stock, a South Carolina corporation (or S-Corp election) may be more appropriate.
Do I need a registered agent for a South Carolina LLC?
Yes, every South Carolina LLC is legally required to maintain a registered agent with a physical street address in the state — P.O. boxes are not permitted. The registered agent receives official legal documents, service of process, and government correspondence on behalf of the LLC during business hours. You can serve as your own registered agent if you have a South Carolina street address, or hire a professional registered agent service for roughly $49–$299 per year. Failing to maintain a registered agent can result in your LLC losing good standing with the SC Secretary of State.
How long does it take to form an LLC in South Carolina?
When you file Articles of Organization online through the SC Business One Stop portal, South Carolina typically processes the filing in 3–5 business days. Paper filings mailed to the Secretary of State can take 2–4 weeks depending on current volume. South Carolina does not currently offer an official expedited processing option for LLCs, so online filing is the fastest route. Once approved, you will receive a stamped copy of your Articles and a Certificate of Organization confirming your LLC is active.
What taxes does a South Carolina LLC pay?
By default, a single-member South Carolina LLC is taxed as a sole proprietorship and a multi-member LLC is taxed as a partnership, meaning profits pass through to members' personal federal and SC income tax returns. South Carolina personal income tax rates range from 0% to 6.2% (the top rate drops to 6% in 2024 and phases down further in coming years). If your LLC elects S-Corp or C-Corp status, it will owe South Carolina's flat 5% corporate income tax on net income. South Carolina also imposes a 6% sales and use tax on taxable goods and services, and LLCs with employees must register for SC withholding tax.