Form an LLC in South Carolina: Total Cost & Filing Steps (2026)

South Carolina LLC Costs: A Founder's Guide to $110 Filings and Zero Annual Reports (2026)

Founders, listen up: South Carolina offers one of the leanest LLC setups in the US. For a pass-through entity, your state-level commitment for the first five years could be as low as $110. Yes, you read that right. This is paid once, upfront, with no recurring annual report fees, no franchise taxes, and no publication requirements for most LLCs. The only caveat? If your LLC opts for C-corp or S-corp tax status, you'll face an initial $25 CL-1 corporate filing and potential corporate license fees down the line. But for the typical bootstrapped, pass-through venture, SC is exceptionally cost-effective.

The Lowdown: South Carolina LLCs at a Glance

Establishing an LLC in South Carolina involves a $110 filing fee for your Articles of Organization with the Secretary of State. If you file online, expect an additional $15 enhanced access fee, bringing the total to $125. The big win here is the absence of ongoing state-level charges: no yearly reports, no annual franchise or privilege taxes, and no mandate for newspaper publication for pass-through LLCs.

Your primary recurring state obligation for a default-taxed, pass-through LLC will be your personal income tax on earnings, currently a flat 6.2% (reduced from 6.4% in 2026). Don't forget the federal FinCEN BOI report, a new compliance step. South Carolina's online filing system is efficient, typically processing applications within one business day, without any expedite fees. This structural friendliness, combined with a reasonable cost of living and no residency rule for members, positions SC competitively alongside states like Ohio, Mississippi, and Missouri for budget-conscious LLC maintenance.

South Carolina LLC Expense Breakdown (2026)

Here's a quick look at the typical costs involved:

Line item	Cost	Source
Articles of Organization (statutory)	$110	sos.sc.gov
Online enhanced access fee	$15	sos.sc.gov
Annual Report (pass-through LLC)	$0	sos.sc.gov
Initial CL-1 filing (if LLC elects C-corp or S-corp)	$25	dor.sc.gov
Registered Agent service (SC-resident agent required)	$50-$200/yr	sos.sc.gov
Year 1 total (online, pass-through)	$125
Year 1 with SC RA service	$175-$325
Year 2+ ongoing (DIY, pass-through)	$0
5-year total (DIY, pass-through)	$125

All figures were confirmed on 2026-05-14 using official South Carolina state resources.

Why South Carolina is a Cost-Effective Choice

South Carolina designed its LLC framework with the federal pass-through default in mind. This means that unless your LLC specifically chooses to be taxed as a corporation, the entity itself won't owe state-level annual fees or franchise taxes. Profits simply pass through to your personal tax return, where they're subject to South Carolina's individual income tax rates.

• No Annual Report: Unlike many states, pass-through LLCs in SC don't need to file an annual report with the Secretary of State. This is a significant administrative relief.
• No Franchise Tax: The corporate license fee only applies to entities that elect C-corp or S-corp status. Your typical pass-through LLC avoids this.
• No Publication Requirement: Forget about expensive newspaper announcements. Unlike New York or Arizona, SC has no such rule.
• Fast Processing: Online filings are usually approved within a single business day, and there's no extra charge for this speed.
• Resident Agent: You do need a registered agent with a physical South Carolina street address, not a P.O. Box. This is standard, but worth noting for out-of-state founders.

The trade-off is South Carolina's relatively flat 6.2% individual income tax rate, which applies to your LLC's pass-through earnings. This structure makes SC particularly appealing for low-revenue or asset-holding LLCs, where avoiding entity-level taxation takes precedence over the personal income tax rate.

Step-by-Step: Forming Your LLC in SC (DIY Approach)

If you're handling the formation yourself, here's a practical guide:

1. Choose Your Name: Start by searching for name availability at the SC Business Filings name search. Your chosen name must include "Limited Liability Company," "LLC," or "L.L.C." and cannot contain words like "corporation" or "incorporated," or other restricted terms.
2. Appoint a Registered Agent: This individual or entity must be an SC resident or authorized to conduct business in the state, and must have a physical street address in South Carolina.
3. File Articles of Organization: The statutory fee is $110. Filing online adds a $15 enhanced access fee, making it $125 total. You can file via the SC Business Filings portal or by mail to the Secretary of State, 1205 Pendleton Street, Suite 525, Columbia, SC 29201.
4. Obtain a Federal EIN: This Employer Identification Number is free from the IRS. Apply at irs.gov.
5. Draft an Operating Agreement: While not legally mandated by SC statute, this document is highly recommended. For single-member LLCs, a strong operating agreement helps protect your personal assets from business liabilities.
6. Register with the SC Department of Revenue: This step is only necessary if your LLC has employees, sells taxable goods, or opts for corporate tax status. Register via MyDORWAY.
7. Consider CL-1 Filing (If Electing C-corp/S-corp): If your LLC chooses C-corp or S-corp tax status, file Form CL-1 (Initial Annual Report of Corporations) with the SC Department of Revenue within 60 days of formation. This incurs a $25 fee.
8. Register for Sales Tax: If you're selling taxable goods, you'll need a Retail License ($50) from the SC Department of Revenue.
9. Open a Business Bank Account: Most banks, such as BB&T (Truist) and South State Bank, along with local credit unions, will require your filed Articles of Organization, EIN letter, and operating agreement to open an account.
10. File FinCEN BOI Report: Under the Corporate Transparency Act, this report is mandatory within 30 days of formation. It's free to self-file at fincen.gov/boi and is not publicly accessible.

Online filings through the SC Business Filings portal are typically processed within one business day, without any additional fee for expedited service.

Common Pitfalls: Hidden Costs Founders Often Miss

Beyond the straightforward $125 online filing cost, several expenses frequently surprise new South Carolina founders.

1. Registered Agent Service: If you're not an SC resident, or simply prefer to keep your address private, you'll likely need to hire a commercial registered agent. This service typically costs between $50 and $200 annually.
2. FinCEN BOI Filing: While free to file, missing the 30-day deadline for this federal Beneficial Ownership Information report can lead to significant penalties, up to $500 per day. It adds a new layer of compliance you must track.
3. Local Business Licenses: Many SC cities and counties, including Charleston, Columbia, Greenville, and Myrtle Beach, require local business licenses. These often come with annual renewal fees ranging from $50 to over $300, typically based on your gross receipts.
4. SC Retail License: If your business sells taxable goods, a one-time $50 fee for a Retail License is required from the SC Department of Revenue. This also means quarterly or monthly sales tax returns.

For example, a common first-year setup could look like this: initial $125 filing fee + $100 for a registered agent + $75 for a local business license = $125 + $100 + $75 = $300. This is far more than just the state filing fee.

Unique Aspects of South Carolina LLCs

• No Annual Report for Pass-Throughs: This is a standout feature. SC is among a small group of states, including Ohio, Mississippi, Missouri, New Mexico, and Arizona, that don't burden pass-through LLCs with recurring state filing requirements.
• Competitive Filing Fee: The $110 statutory fee is quite low compared to many neighboring states. It's less than North Carolina ($125) and Tennessee ($300), and on par with Florida ($125), though slightly higher than Georgia ($100).
• Early Adopter: South Carolina adopted LLC legislation early, in 1996. The South Carolina Uniform Limited Liability Company Act, found at S.C. Code Ann. § 33-44-101 et seq., is based on the robust Revised Uniform Limited Liability Company Act (RULLCA).
• Privacy for Members: Similar to Delaware, only the organizer and registered agent are publicly listed on the Articles of Organization, offering a degree of privacy for members.
• Single-Member Charging Order Protection: S.C. Code § 33-44-504 explicitly limits creditors to a charging order against a single-member LLC's distributional interest. This provides meaningful asset protection for SC LLCs, a feature not all states offer for single-member entities.

Frequently Asked Questions

Does South Carolina charge an annual LLC fee?

No, not for pass-through LLCs. South Carolina does not require these entities to file an annual report or pay an annual franchise or privilege tax. The only state-level fee is the initial $110 statutory filing fee ($125 with the online access fee). However, LLCs electing to be taxed as C-corporations or S-corporations must file an initial $25 CL-1 and pay an annual corporate license fee. This information is verified by sos.sc.gov as of 2026-05-14.

Why is the online filing fee $125 instead of $110?

The statutory filing fee for South Carolina Articles of Organization is $110, as outlined in S.C. Code § 33-44-1204. The additional $15 is an "enhanced access fee" for using the SC Business Filings portal online. While mail filings only pay the $110 base fee, they are significantly slower, taking 5-7 business days versus one day online.

Can a non-SC resident form an LLC in South Carolina?

Absolutely. South Carolina imposes no residency requirements for LLC members or managers. The only stipulation is that the registered agent must have a physical street address within SC. Non-residents frequently opt for a commercial registered agent service, which typically costs $50-$200 per year. The LLC itself can be entirely owned and managed by individuals residing out-of-state. State income tax applies only to income sourced within South Carolina.

Does South Carolina recognize Series LLCs?

No, as of 2026, South Carolina has not enacted Series LLC legislation. Founders seeking a Series LLC structure generally form their entity in states like Delaware, Wyoming, Nevada, Texas, or Tennessee, and then register it as a foreign LLC if they conduct business in South Carolina. Refer to SC Code Title 33 Chapter 44 (LLC Act) for details.

What is the SC corporate license fee for an LLC taxed as a corporation?

If an LLC elects C-corp or S-corp federal tax status, South Carolina treats it like a corporation for license fee purposes. This fee is calculated at 0.1% of capital and paid-in surplus, plus $15, with a minimum fee of $25. For most small LLCs with limited capital, the fee remains at the $25 minimum. The CL-1 form is initially filed within 60 days of formation, and subsequently annually with the SC1120 corporate return. Source: SC Department of Revenue Corporate Tax.

Does South Carolina require an operating agreement?

No. S.C. Code § 33-44-103 acknowledges operating agreements as legally binding but doesn't mandate them. However, in practice, nearly all SC banks and lenders will require a written operating agreement before opening business accounts or extending credit. For single-member LLCs, a written agreement is crucial for maintaining the corporate veil. Generic single-member templates often suffice, but multi-member LLCs or complex asset-protection structures warrant attorney-drafted agreements.

How does South Carolina's annual filing differ from other states?

Most states mandate an annual report or franchise filing with their Secretary of State to keep an LLC in good standing. South Carolina uniquely does not require this for pass-through LLCs. The initial $110 statutory fee is a one-time payment, and no further state-level annual entity filing is required at the Secretary of State level. The only recurring obligations are the federal FinCEN BOI report (which is private) and personal income tax on member earnings. This positions SC among a select group of states, including Ohio, Mississippi, Missouri, New Mexico, and Arizona, where the LLC entity itself has no ongoing state-level filing duties.

South Carolina's Quirks: The $15 Fee and the CL-1 Trap

While South Carolina is generally cost-effective, two minor peculiarities often catch first-time founders off guard.

1. The $15 Online Access Fee: The widely published statutory filing fee is $110. However, anyone filing online will pay $125 due to a $15 enhanced access fee that supports the state's business filings portal. So, while $110 is technically accurate for mail filings, the operational online total is $125.
2. The CL-1 Trap: The moment your LLC decides to be taxed as an S-corp or C-corp at the federal level (a common move once revenue reaches roughly $40,000-$60,000 to optimize self-employment tax), it becomes liable for the SC corporate license fee. Crucially, Form CL-1 must then be filed with the Department of Revenue within 60 days of this election, not 60 days of original formation. Missing this CL-1 deadline can result in late penalties.

Full data + interactive calculator: llcformationcost.com