How Much Does an LLC Cost in South Carolina (Full Guide)
Starting an LLC in South Carolina costs $110 up front. That fee goes to the Secretary of State when you file the Articles of Organization. It puts the LLC on record.
Staying in good standing costs less than in most states. South Carolina doesn't charge most LLCs an annual report fee at all. The only exception is an LLC that elects corporate tax status with the IRS. That LLC owes a separate filing to the Department of Revenue instead.
A few other costs show up along the way, from a registered agent to optional documents. Some are required. Others only apply if your business needs them.
Quick Summary
- The Articles of Organization filing fee is the one mandatory cost to form the LLC itself.
- Most South Carolina LLCs skip the annual report fee other states charge. Corporate-taxed LLCs file a separate report with the Department of Revenue instead.
- Small businesses make up 42.9% of South Carolina's private-sector workforce, per SBA data [1], so these costs matter to a lot of owners.
| Cost Item | Amount | Frequency | Required? |
|---|---|---|---|
| Articles of Organization | $110 | One-time | Yes |
| Name Reservation | $25 | One-time | No |
| Registered Agent Service | $0 self / $80-$300 hired | Every year | Yes (self-serve allowed) |
| Annual Report (Secretary of State) | $0 | N/A for default LLCs | No |
| CL-1 Initial Report (corporate-election LLCs only) | $25 | One-time, then annual returns | If applicable |
| South Carolina State Income Tax (pass-through) | Varies by income | Ongoing | If applicable |
| Federal Self-Employment Tax | 15.3% | Ongoing | If applicable |
| Business License | Varies by city/county | Varies | If applicable |
| DBA / Trade Name | Varies by county | One-time | No |
| Certified Copies | $3 + $0.50/page | As needed | No |
| Certificate of Existence | $10 | As needed | No |
| Operating Agreement | $0-$1,000+ | One-time | No |
| EIN | $0 | One-time | No |
Cost to Start a South Carolina LLC
Before the state approves a new LLC, one fee is mandatory. Two more items are worth knowing about. One, a name reservation, is entirely optional. The second, a registered agent, has to be on file even though hiring one out doesn't.
1. LLC Formation Filing Fee ($110 - Mandatory)
The South Carolina Secretary of State charges $110 to file Articles of Organization [2]. That fee is the same whether you file by mail or through the Business Entities Online portal.
You can file in person, by mail, or online. This fee covers the core LLC cost of getting the entity on record. Check the Secretary of State's portal for the current processing timeline.
2. Name Reservation ($25 - Optional)
A $25 filing puts a name on hold for a nonrenewable 120 days [3]. Let that window close without following up, and the name becomes available to anyone else again.
Skip this step if you're filing right away. It only matters when there's a gap between picking a name and filing the paperwork. Search the state's Business Name Search first to confirm the name is open.
3. Registered Agent Service ($0 Self / $80-$300 Hired - Mandatory to Have, Optional to Hire)
South Carolina law requires every LLC to continuously maintain a registered agent with a South Carolina street address. Acting as your own agent costs nothing. Hiring one out is the part that's optional.
Hiring a commercial registered agent in South Carolina typically runs somewhere between $80 and $300 for the year. That agent receives service of process and official state mail on the LLC's behalf. The address on file has to stay accurate at all times.
Costs After Your South Carolina LLC Is Approved
Once the LLC exists, ongoing costs are lighter than in most states. Here's what actually applies, starting with the one item most owners assume every state charges.
1. Annual Report with the Secretary of State ($0 for Most LLCs)
South Carolina is one of the few states that skips a standard annual report fee for LLCs. A default LLC files nothing with the Secretary of State each year. It owes nothing for one either [4].
The exception is narrow. An LLC can elect corporate tax treatment instead, as a C-corp or an S-corp. The state then taxes it like a corporation.
That LLC must file the CL-1 Initial Annual Report. It also pays a $25 Corporate License Fee to the Department of Revenue.
The clock on that filing starts differently than most owners expect. Instead of the Articles of Organization filing date, it's 60 days from the date the LLC first conducts business in South Carolina [5].
Once the CL-1 is processed, the Department of Revenue sends its own filing-requirements letter (Form SC1070) spelling out the corporate return the LLC owes every year after that. Stay on the default pass-through tax status, and none of this applies.
2. Business Licenses (Varies - If Applicable)
South Carolina has no single statewide business license for LLCs. Each municipality and county sets its own local licensing rules and fees. What you owe depends entirely on where the business operates. The South Carolina Business One Stop lists the requirements by locality.
3. South Carolina and Federal Taxes (Mandatory if Applicable)
An LLC's tax bill depends on its setup, revenue, and location. A few pieces apply to most owners. Members pay federal self-employment tax on pass-through profit. That rate is currently 15.3%. The same profit also lands on each owner's personal state return.
South Carolina doesn't tax LLC income at the entity level by default. The state and federal pieces are separate filings with separate deadlines, so budget for both.
Optional Costs Worth Knowing About
None of the following is required to keep a South Carolina LLC in good standing. Each one solves its own problem.
1. DBA / Trade Name (Varies by County - Optional)
Doing business under a name other than the LLC's legal name means registering a DBA. South Carolina doesn't handle this through the Secretary of State. It's filed at the county level instead. The fee varies by county.
2. Certified Copies ($3 + $0.50 per Additional Page - Optional)
Ordering a certified copy of an LLC's filing costs $3 for the first page. Each page after that adds $0.50 [6]. That covers documents like the Articles of Organization. Order online, by phone, or in person through the Secretary of State.
3. Certificate of Existence ($10 - Optional)
A certificate of existence is South Carolina's version of a certificate of good standing. It costs $10 and confirms the LLC is current on its filings. Banks and out-of-state partners often ask for one before opening an account or approving a foreign registration.
4. Operating Agreement ($0-$1,000+ - Recommended)
South Carolina doesn't require an LLC to file an operating agreement anywhere. Skipping one anyway is a common mistake. Members use it to lock down who owns what, who runs the LLC, and what happens if someone leaves.
Writing one yourself costs nothing. An attorney-drafted version costs more, usually $100 to $1,000 or higher. The price moves with how many members it covers and how much detail goes in.
5. Employer Identification Number ($0 - Recommended)
The IRS issues an EIN online at no charge, instant upon completion. Banks want one to open a business account. The IRS wants one for payroll and other tax filings. Any LLC with more than one member has to get one either way.
South Carolina LLC Formation Costs and Tax Deductions
Most of what you spend to form a South Carolina LLC can be written off. Under IRS Section 195, you can deduct up to $5,000 in startup costs in the first year of operation.
That figure covers the $110 filing fee, registered agent fees, and attorney costs for an operating agreement. The catch: total startup costs have to stay under $50,000 [7].
Costs above that threshold get amortized over 15 years instead. This deduction doesn't apply automatically, either. You have to elect it on the first-year tax return [8].
FAQs
Does a South Carolina LLC Have to File an Annual Report?
No annual report is required unless the LLC actively elects corporate tax status by filing IRS Form 8832 or Form 2553. Never file either form, and the LLC stays exempt with nothing to track.
How Much Is a Business Bank Account in South Carolina?
A business bank account in South Carolina typically runs $10 to $50 a month, though several banks waive that charge once you keep a minimum balance or meet other conditions.
How Much Does South Carolina Tax an LLC?
South Carolina taxes an LLC nothing at the entity level by default. The one exception is that same corporate-election group: elect corporate tax status, and South Carolina corporate income tax gets added on top of the CL-1 license fee.
Do I Need to File a Beneficial Ownership Information Report?
No, domestic LLCs formed in the United States do not need to file a Beneficial Ownership Information report with the Financial Crimes Enforcement Network. An interim final rule removed this requirement for domestic companies. Check FinCEN.gov/boi for updates.
References:
- https://advocacy.sba.gov/wp-content/uploads/2025/06/South_Carolina_2025-State-Profile.pdf
- https://businessfilings.sc.gov/BusinessFiling/Home/DownloadForms?pdfCategoryId=1
- https://businessfilings.sc.gov/BusinessFiling/Home/DownloadForms?pdfCategoryId=9
- https://www.scstatehouse.gov/code/t12c020.php
- https://dor.sc.gov/tax/corporate
- https://sos.sc.gov/online-filings/business-entities/document-request-online
- https://www.congress.gov/crs-product/IF12970
- https://www.law.cornell.edu/uscode/text/26/195
