Form a Business in South Carolina

What makes South Carolina different

• SC LLCs (taxed as default pass-through) have NO Annual Report requirement. Once formed, zero recurring SOS filings if not taxed as Corp. Lifetime LLC SOS cost = $110 formation. Same advantage as MO/OH/AZ.
• LLCs electing C-Corp taxation DO file CL-1 + Annual License Fee at SC DOR (same as Corps). Distinction matters.
• Corp formation TOTAL: $135 ($110 Articles + $25 CL-1 Initial Annual Report fee, combined). The $25 CL-1 is paid to SOS at formation OR to DOR within 60 days if missed.
• SC's "Annual Report" is the Annual License Fee filed at DOR with Corp tax return (not at SOS): - Rate: 0.1% of capital stock + paid-in capital + paid-in surplus - Minimum: $25/year - Filed via Form SC1120 (Corp Income Tax…
• SC Corp Income Tax: 5.0% flat. Mid-low US Corp rate.
• SC Personal Income Tax: progressive up to 6.2% (top bracket). Recently reduced from 7% under tax reform package.
• No franchise tax (SC's License Fee functions as a franchise tax substitute, but is computed on capital not net worth).
• Sales Tax 6% state + local up to 3% = combined 6-9% depending on county.

Ready to file in South Carolina?

We handle Articles of Organization, registered agent service, annual report monitoring, and ongoing compliance, backed by our canonical South Carolina ruleset (re-verified quarterly against South Carolina Secretary of State Mark Hammond, Business Entities Division).

Filing portal: https://businessfilings.sc.gov/