How to start an LLC in South Carolina
Forming an LLC in South Carolina costs $125 to file the Articles of Organization with the South Carolina Secretary of State. There is no annual report fee. South Carolina charges no franchise tax on a standard LLC. Base SOS filing fee is $110; the standard online route through the SC Business Filings portal (businessfilings.sc.gov) adds a mandatory $15 SC.gov electronic-records/service fee, bringing the typical total to $125. Standard LLCs (taxed as a partnership or disregarded entity) owe no SC annual report; only an LLC that elects C-corp or S-corp tax treatment must file the recurring corporate filings (e.g., SC1120S). Registered agent required at formation; ongoing cost varies by provider ($100-300/year typical) if not self-served.
How much does it cost to start an LLC in South Carolina?
| Item | Cost |
|---|---|
| Filing fee (Articles of Organization) | $125 |
| Annual report | None |
| Franchise or business tax | None |
| Registered agent | Required |
Source: South Carolina Secretary of State, fee schedule reviewed August 29, 2026.
What are the steps to form an LLC in South Carolina?
- Name your LLC. Pick a name that is available and meets South Carolina naming rules, then check it against the Secretary of State's business database.
- Appoint a registered agent. South Carolina requires a registered agent with a physical in-state address to receive legal mail. You can be your own agent, or hire a service.
- File the Articles of Organization. Submit it to the South Carolina Secretary of State and pay the $125 fee. This is the step that legally creates the LLC.
- Get an EIN from the IRS. It is free and takes minutes. Do not pay a service for it. See how to get an EIN free from the IRS.
- Open a business bank account. Keep business money separate from personal money so your liability protection holds up.
Does South Carolina have a franchise tax on an LLC?
No. No franchise tax on LLCs
How is an LLC taxed in South Carolina?
By default, an LLC is a pass-through entity: it pays no income tax itself, and the profits flow to the owners' personal returns. South Carolina has a state individual income tax with a top rate of 5.21% (graduated brackets), so those profits are taxed on your South Carolina return on top of federal tax. Act 110 / H.4216 (signed by Gov. McMaster 3/30/2026) replaced the old 0%/3%/6% three-bracket schedule starting with tax year 2026. New structure: 1.99% on taxable income below $30,000; 5.21% (minus a $966 subtraction, so the two brackets meet at $30,000) on income at or above $30,000. The law also creates an automatic further-reduction mechanism: if the Board of Economic Advisors certifies revenue growth of 5%+ year over year, the top rate is cut again (capped at $200M in annual revenue impact), with any new rate set by BEA no later than Feb 15 each year. Applies beginning with 2026 returns (due 4/15/2027); does not change 2025 returns.
An LLC can also elect to be taxed as an S-corp, which changes how owners pay self-employment tax. See LLC vs S-corp vs sole proprietorship and how self-employment tax works.
Sources
- South Carolina LLC filing fee, Articles of Organization, annual report, and registered-agent rule: South Carolina Secretary of State.
- South Carolina franchise and business tax treatment of LLCs: South Carolina tax authority.
- South Carolina individual income tax rates (pass-through profits): South Carolina Department of Revenue / Taxation.
- EIN is free from the IRS: IRS, Apply for an EIN online.