Quick answer

Quick Answer

To start a South Carolina LLC, you must file Articles of Organization with the South Carolina Secretary of State and pay a $110 filing fee. You must also appoint a registered agent with a physical street address in South Carolina. Once formed, your LLC is virtually maintenance-free at the state level because South Carolina does not require LLCs to file an annual report or pay a franchise tax. Pass-through LLC profits are taxed at South Carolina's graduated personal income tax rates, which max out at 6.4%.

South Carolina LLC filing fee

The state filing fee for your Articles of Organization is $110. You can submit this document online through the South Carolina Secretary of State's Business Entities Online portal. Online filings are highly recommended and are typically processed within 1 to 3 business days.

Step 1: Choose a name

Your LLC's name must be perfectly unique and distinguishable from other business entities registered in South Carolina. State law dictates that the name must include an appropriate LLC designator, such as "Limited Liability Company", "LLC", or "L.L.C.". You can search the South Carolina Secretary of State's online database to verify that your desired name is available.

Step 2: Appoint a registered agent

Every South Carolina LLC must designate a registered agent. This is an individual or authorized business entity responsible for receiving service of process, lawsuits, and official state correspondence on behalf of the LLC. The agent must have a physical street address in South Carolina (P.O. Boxes are not permitted) and must be available during regular business hours.

Step 3: File formation documents

Your business is officially created when you file the Articles of Organization with the South Carolina Secretary of State. You must provide your LLC's name, the name and address of your registered agent, the initial designated office address, and whether the LLC is member-managed or manager-managed. The state filing fee is $110.

Step 4: Create an operating agreement

South Carolina law does not require you to file an operating agreement with the state. However, drafting an operating agreement is highly recommended to protect your business legally. It serves as the internal governing document for your LLC, establishing ownership percentages, voting rights, and how profits are divided. Additionally, almost all banks will require a copy of your operating agreement to open a business bank account.

Step 5: Get an EIN

An Employer Identification Number (EIN) is a free 9-digit tax ID assigned by the IRS. It functions like a social security number for your business. You will need an EIN to hire employees, open a business checking account, and file federal tax returns. You can apply for an EIN online directly through the IRS website.

Step 6: Register for state taxes if needed

If your LLC sells physical goods, you must register with the South Carolina Department of Revenue to collect the state's 6% base sales tax, plus any local county additions (which usually bring the total to 7%–9%). For income tax, standard LLC profits pass through to your personal return and are taxed at South Carolina's personal income tax rates, which currently peak at 6.4%.

Step 7: File annual reports and stay compliant

Unlike almost every other state, South Carolina does not require standard LLCs to file an annual report. There is no recurring state maintenance fee paid to the Secretary of State. Your only ongoing obligation is to maintain a valid registered agent.

South Carolina LLC Cost

Fee Type Amount
Formation fee $110
Registered agent estimate $39 - $150 / year
Annual report fee $0 (None)
Franchise tax $0 (None)
Publication fee if applicable $0 (None)
WHEN THIS MAY NOT APPLY

If you do not live in South Carolina, do not operate from South Carolina, and do not have a specific South Carolina-related reason for forming there, a South Carolina LLC may not be the best default choice. You may still need to register the LLC as a foreign LLC in the state where you actually operate, which can create duplicate filing fees, registered agent costs, and annual compliance requirements.

South Carolina currently charges $125 to form a domestic LLC. Annual reports are currently a minimum $25 License Tax. For many purely online businesses, it is usually worth comparing your home state with commonly used business-friendly states such as Wyoming, which charges $100 to form an LLC and has a $60 minimum annual license tax, before choosing South Carolina.

Should you form your LLC in South Carolina?

A South Carolina LLC usually makes sense if you live in South Carolina, operate your business from South Carolina, or have a clear legal or tax reason to use South Carolina. If you live and operate somewhere else, forming in South Carolina may create extra registered agent costs, foreign qualification requirements, and duplicate compliance obligations. South Carolina may appeal to some owners, but compare it with Wyoming, Delaware, Nevada, and your home state in our guide to the best state for an online business LLC. For a comprehensive overview of starting a business, visit our LLC formation hub.

Situation Is a South Carolina LLC usually a good fit?
You live in South Carolina Usually yes
Your business operates in South Carolina Usually yes
You want privacy Depends on state rules
You live in another state Usually only if you have a specific reason
You are a non-US resident Depends on banking, taxes, and compliance needs

South Carolina LLC vs Wyoming LLC

For non-resident business owners, Wyoming is superior to South Carolina. While South Carolina is technically cheaper to maintain ($0 annual report compared to Wyoming's $60 minimum fee), Wyoming has zero state income tax, saving you from South Carolina's up-to-6.4% rates. More importantly, Wyoming offers robust statutory anonymity, keeping your ownership details completely off public registries. South Carolina does not provide this level of privacy. If you operate a brick-and-mortar business inside South Carolina, you must register a South Carolina LLC. If you run a purely online business, Wyoming is a far better choice.