1. South Carolina LLC Overview
If you live or operate a business in South Carolina, forming a local LLC is required. The biggest advantage of a SC LLC is the lack of ongoing state filings.
- No annual report — Unlike neighboring North Carolina ($200/year), SC charges $0
- Reasonable formation fee — $110 to file Articles of Organization
- No franchise tax — Standard LLCs don't pay a corporate franchise tax
Zero Ongoing State Fees
Because South Carolina does not require an annual report for LLCs, your ongoing state compliance costs can be $0 if you serve as your own registered agent.
2. South Carolina LLC Requirements
- Name must contain "Limited Liability Company," "LLC," or "L.L.C."
- Appoint a registered agent with a South Carolina physical address
- File Articles of Organization with the SC Secretary of State ($110)
3. South Carolina LLC Costs and Fees (2026)
| Cost Item | Amount | Notes |
|---|---|---|
| Articles of Organization | $110 | One-time state filing fee |
| Annual Report | $0 | Not required for LLCs |
| Registered Agent | $50–$150/year | Required SC physical address |
| EIN | Free | Apply at IRS.gov |
| Operating Agreement | $0–$1,000 | Recommended, not legally required |
4. How to Start a South Carolina LLC (Step by Step)
- 1 Choose your LLC name (must include "Limited Liability Company," "LLC," or "L.L.C.")
- 2 Appoint a registered agent with a South Carolina physical address
- 3 File Articles of Organization with the SC Secretary of State ($110)
- 4 Obtain an EIN from the IRS (free at IRS.gov)
- 5 Draft an Operating Agreement (not filed, but legally binding)
- 6 Register with the SC Department of Revenue (if selling goods or hiring)
- 7 Open a business bank account
5. South Carolina Annual Report
Unlike corporations (which must file an annual report and pay a license fee), standard LLCs in South Carolina do not have to file an annual report with the Secretary of State.
6. South Carolina LLC Taxes (2026)
- State income tax — Up to 6.4% graduated rate on pass-through profits
- Federal income tax — Pass-through to personal return
- Self-employment tax — 15.3% on net earnings
- Sales tax — 6% state rate + local county additions (typically 7%–9% combined)
7. Best For / Not Best For
Best For
- Entrepreneurs living and operating in South Carolina
- Founders wanting zero annual state reporting fees
Not Best For
- Out-of-state owners without South Carolina nexus