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$110One-time state filing fee
Annual Report$0Not required for LLCs
Registered Agent$50–$150/yearRequired SC physical address
EINFreeApply at IRS.gov
Operating Agreement$0–$1,000Recommended, not legally required

4. How to Start a South Carolina LLC (Step by Step)

  1. 1 Choose your LLC name (must include "Limited Liability Company," "LLC," or "L.L.C.")
  2. 2 Appoint a registered agent with a South Carolina physical address
  3. 3 File Articles of Organization with the SC Secretary of State ($110)
  4. 4 Obtain an EIN from the IRS (free at IRS.gov)
  5. 5 Draft an Operating Agreement (not filed, but legally binding)
  6. 6 Register with the SC Department of Revenue (if selling goods or hiring)
  7. 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