How to File LLC Taxes in South Carolina (2026)

Published by Jon Morgan | Co-Founder & Chief Editor

Last updated: August 29, 2026

FACT CHECKED by Aran Quinn, CPA, Esq., LL.M

Methodology
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The South Carolina form your LLC files depends on how the IRS classifies it. A single-member LLC reports its income on the owner's SC1040, and a multi-member LLC files Form SC1065.

An LLC taxed as an S-corp files Form SC1120S, and one taxed as a C-corp files Form SC1120. All four go to the South Carolina Department of Revenue, and individual owners pay South Carolina's top marginal rate of 6% on their share of the profit.

This page walks through each South Carolina form and rate, the state's pass-through entity tax election, and the employer and sales tax rules that apply once your LLC has staff or customers in the state.

Quick Summary

South Carolina LLC Tax Summary

Here's how South Carolina taxes each LLC type, the form each one files, and where it goes:

How South Carolina LLCs are taxed

Your South Carolina LLC follows the IRS's default classification unless you elect otherwise. Profit passes through to the owners' personal returns, and the LLC itself doesn't pay its own income tax.

You can change that by electing S-corp or C-corp treatment with the IRS. South Carolina then follows whichever classification you choose.

The South Carolina Department of Revenue conforms to the federal Internal Revenue Code, with a few state-specific tweaks. Your federal taxable income is the starting point here too, per the general rules for how LLC owners file taxes.

South Carolina state taxes by LLC type

Your South Carolina tax form depends on how many members your LLC has and whether you've elected corporate treatment with the IRS. Each option below carries its own state form and deadline.

1. Single-member LLC: no separate SC return

The IRS treats a single-member LLC as a disregarded entity, and South Carolina follows the same rule. You report the profit or loss on your own SC1040, the same return you'd file as a sole proprietor, due April 15 for a calendar-year filer.

There's no separate South Carolina return to file for a single-member LLC and no separate signer beyond you, unlike the multi-member, S-corp and C-corp filings covered next.

2. Multi-member LLC: Form SC1065

A multi-member LLC follows partnership tax rules at both the federal and state level. It files Form 1065 with the IRS and Form SC1065 with the SCDOR.

Both are due by the 15th day of the third month after your tax year ends, March 15 for a calendar-year LLC.

Each partner gets a K-1 showing their share of the profit, and it's the managing member who signs the return.

The partnership must also withhold 5% of each nonresident partner's South Carolina taxable income and remit it to the SCDOR.

3. S-corp election: Form SC1120S

Once your LLC elects S-corp status with the IRS using Form 2553, it files Form SC1120S with the SCDOR. The due date matches SC1065: the third month's 15th day after your tax year ends.

An officer of the corporation signs the return. The LLC also owes South Carolina's corporate license fee, part of what an LLC costs to maintain in South Carolina, at least $25 a year on top of any income tax due [1].

The corporation withholds 5% of what it pays nonresident shareholders on their South Carolina income and sends that amount to the SCDOR every year.

4. C-corp election: Form SC1120

An LLC that elects C-corp status with the IRS using Form 8832 files Form SC1120 with the SCDOR. The due date is the 15th day of the fourth month after your tax year ends, April 15 for a calendar-year filer.

That's the same date as the federal Form 1120. The LLC also owes the corporate license fee described above, and a corporate officer takes care of signing it.

5. South Carolina income tax rate for tax year 2026

South Carolina taxes individual owners on a bracket that tops out at 6%, the rate on single-member and multi-member LLC profit reported on an owner's SC1040 [2]. That individual rate is already at the statute's floor, with no further reduction scheduled.

Corporations, including LLCs taxed as C-corps, pay a flat 5% instead, a separate rate set by the same tax code chapter.

Federal taxes South Carolina LLC owners pay

1. Federal self-employment tax

If you're an active LLC member who takes profit out of the business, you owe federal self-employment tax at 15.3% [3]. South Carolina has no state-level version of this tax, so that 15.3% is the whole self-employment bill.

2. Federal income tax

You also owe regular federal income tax on the profit you take from your LLC, based on your tax bracket and deductions.

Most LLC owners cover both federal taxes through quarterly estimated payments due April 15, June 15, September 15 and January 15 [4].

Other South Carolina taxes that may apply

A few more South Carolina taxes kick in once your LLC hires staff, sells taxable goods or services, or operates in a regulated industry.

1. Employer taxes

If your LLC has employees, you'll register for unemployment insurance tax with the South Carolina Department of Employment and Workforce through its SUITS portal.

Your rate depends on your industry and claims history. Confirm your assigned rate and wage base directly with SCDEW once you register.

2. Sales and use tax

If your LLC sells taxable goods or services, South Carolina's state sales and use tax rate is 6%. Counties can add up to 1% more if local voters approved it [5].

Register for a retail license with the SCDOR through the MyDORWAY portal before you start collecting sales tax from customers.

3. Industry and local taxes

The SCDOR also taxes certain industries on top of standard state taxes. Breweries, tobacco retailers, coin-operated machine owners and out-of-state wine sellers all fall under these extra rules. Depending on where you operate, your city or county may add its own business license tax too.

South Carolina pass-through entity tax (PTET) election

South Carolina lets a qualifying partnership or S-corp, including an LLC taxed either way, elect to pay tax on its active trade or business income at the entity level instead of passing it to owners.

The entity-level rate is a flat 3%, well below the 6% top individual rate owners would otherwise pay on that income. You make the election annually on Form SC1065 or Form SC1120S, no later than your return's due date including extensions.

Talk to a CPA before you elect. It changes how your K-1s work and isn't automatically the better choice for every owner.

What is deductible for a South Carolina LLC

Most ordinary and necessary business expenses, like rent, supplies and employee pay, reduce your South Carolina taxable income the same way they do on your federal return, since the state follows the federal Internal Revenue Code for these deductions. South Carolina doesn't add its own separate list of LLC-specific write-offs beyond a handful of tax credits.

The qualified business income deduction under federal Section 199A is a federal deduction rather than a South Carolina one, and it still lowers the income South Carolina taxes since the state starts from your federal taxable income.

References:

1. https://www.scstatehouse.gov/code/t12c020.php
2. https://www.scstatehouse.gov/code/t12c006.php
3. https://www.irs.gov/businesses/small-businesses-self-employed/self-employment-tax-social-security-and-medicare-taxes
4. https://www.irs.gov/businesses/small-businesses-self-employed/estimated-taxes
5. https://dor.sc.gov/tax/sales

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