Learn the steps to form an LLC in South Carolina – from choosing your name to filing your Articles of Organization. $1 + $110 state fee. Start today.
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Filing fee: $110 by mail (Articles of Organization); $125 online, including the portal’s $15 electronic fee
Processing time: About 24 hours to 2 business days online; 2-3 weeks by mail
State agency: South Carolina Secretary of State (Business Entities Online at businessfilings.sc.gov)
Annual report due: Never for a standard pass-through LLC — no annual report and no recurring state fee (only LLCs electing corporate taxation file with the Department of Revenue)
State tax rate: New two-bracket income tax for 2026 — 1.99% under $30,000, 5.21% above, with automatic cuts scheduled from 2027 — and 6% state sales tax (7-9% combined with local additions)
Start your U.S. business journey today. Form your company with confidence and let Brio handle the paperwork.
Forming an LLC in South Carolina takes 5 steps: choose and check your business name, appoint a Registered Agent with a physical South Carolina address, file Articles of Organization online or by mail, draft an operating agreement, and get an Employer Identification Number (EIN) from the IRS. The state filing fee is $110.
South Carolina has quietly become one of the cheapest states to keep an LLC: a standard pass-through LLC files no annual report and pays no recurring state fee — the $110 formation cost is essentially the only mandatory state charge for the life of the company. And the income tax picture is improving fast: 2026 brings a new two-bracket structure of 1.99% and 5.21%, with automatic rate cuts scheduled from 2027 toward an eventual 1.99% flat rate. An LLC gives you personal liability protection and pass-through taxation without the administrative overhead of a corporation.
Two things to know going in: while there’s no general state business license, most South Carolina cities and many counties require their own local business license, so nearly every operating business needs at least one municipal license. And the no-annual-report perk belongs to default-taxed LLCs only — electing S-corp or C-corp taxation triggers a whole filing regime with the Department of Revenue, starting with the CL-1 initial report due within 60 days.
Unlike some states, South Carolina doesn’t require you to reserve your name before filing — you simply claim it when you file your Articles of Organization. If you’re not ready to file yet, you can reserve a name for $25, which holds it for 120 days. The reservation can’t be renewed (though it can be transferred), so time it to your filing.
Your LLC name must be distinguishable from names already on the Secretary of State’s records and must include a designator like “Limited Liability Company,” “Limited Company,” “LLC,” “L.L.C.,” “LC,” or “L.C.” It can’t imply the company is a bank, insurer, or government agency without authorization. Check the state’s business name search before you file to avoid a rejection.
Every South Carolina LLC must have a registered agent — a person or entity designated to receive legal notices and government documents on behalf of the business. The agent must be a South Carolina resident or a company authorized to do business in the state, with a physical street address (a P.O. box alone doesn’t qualify), available during regular business hours.
You can serve as your own registered agent if you have a physical South Carolina address and can be there during business hours. Many business owners use a professional registered agent service instead — it keeps your personal address off public records and ensures someone is always available to receive documents.
The Articles of Organization is the document that legally creates your South Carolina LLC. You file it with the Secretary of State — online through Business Entities Online at businessfilings.sc.gov, or by mail. Here mail is actually cheaper: $110 on paper versus $125 online (the portal adds a $15 electronic fee) — but online filings are approved in about a day while mail takes 2-3 weeks, and South Carolina offers no paid expedite, so online is the only fast lane.
The Articles must include your LLC’s name, its designated office address, your registered agent’s name and South Carolina street address, the organizers’ signatures, and whether the company is member-managed or manager-managed. No publication requirement, no notarization, no initial report for a default-taxed LLC.
South Carolina doesn’t require you to file an operating agreement with the state, but you should have one. It’s the internal document that defines how your LLC is managed — who owns what, how profits are distributed, and how decisions get made. Without one, the default rules of South Carolina’s Uniform LLC Act fill in the gaps, which may not reflect what you actually want.
Your operating agreement should specify whether the LLC is member-managed or manager-managed. In a member-managed LLC, all owners share day-to-day authority. In a manager-managed LLC, a designated manager handles operations while other members retain economic rights. A written agreement is the version that holds up when disputes arise.
An Employer Identification Number (EIN) is a 9-digit federal tax ID issued by the IRS. Your South Carolina LLC needs one to open a business bank account, hire employees, and file federal taxes. Applying online at irs.gov is free and issues your EIN immediately after you complete the application.
To use the IRS online application, the responsible party must have a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), and the business must have its principal place of business in the United States. The IRS does not charge a fee for issuing an EIN.
For a standard pass-through LLC, this section is refreshingly short: no annual report, no renewal, no recurring Secretary of State fee — ever. The exception is tax elections: an LLC that elects corporate taxation must file Form CL-1 with the Department of Revenue within 60 days of starting business (minimum $25 license fee) and then file annual corporate returns with their license fees — a regime many owners trigger without realizing when they elect S-corp status.
The licenses live locally: South Carolina has no general state business license, but most cities and many counties require their own, so check with your municipality before opening. Retailers also need a $50 retail license per location from the Department of Revenue (via MyDORWAY) before making sales, collecting the 6% state sales tax plus local additions that bring most counties to 7-9% combined. Income tax rates are on a downward escalator under the 2025 reform — worth rechecking each year, since the top rate is scheduled to keep falling from 2027.
The required South Carolina state fee is $110 to file the Articles of Organization by mail, or $125 online including the portal’s $15 electronic fee — and for a standard pass-through LLC, that’s the only mandatory state charge it will ever owe, since there’s no annual report. Name reservation is optional at $25, and retailers add a $50 per-location retail license. There’s no additional state fee to get your EIN; the IRS issues EINs for free.
Yes. South Carolina allows a single person to form and own an LLC – this is called a single-member LLC. You can complete the Articles of Organization yourself through Business Entities Online without an attorney, with approval typically in about a day. You’ll still need a registered agent with a physical South Carolina address, but that can be yourself if you qualify.
No. South Carolina charges a $110 Articles of Organization fee – that’s a required state fee you can’t avoid, though with nothing recurring afterward, it’s among the lowest lifetime costs in the country. What you can avoid is paying extra for formation help. We handle your South Carolina LLC filing for $1; you only pay the required state fees.
No – a South Carolina LLC taxed as a pass-through (the default) files no annual report with the Secretary of State and pays no recurring state fee. Be careful on two fronts: don’t pay third-party “compliance services” for a report that doesn’t exist, and know that electing corporate taxation changes the answer — that triggers the CL-1 initial report with the Department of Revenue within 60 days plus annual corporate returns and license fees thereafter.
Yes, every South Carolina LLC is required to have a registered agent. A registered agent is a person or entity that receives legal notices and official government documents on behalf of your LLC. The agent must be a South Carolina resident or authorized company with a physical street address in the state — not just a P.O. box — and be available during regular business hours. You can serve as your own registered agent or use a professional service.
The mistakes that come up most often are paying for annual report compliance South Carolina doesn’t require, electing S-corp or C-corp status without realizing it creates the CL-1 filing and annual Department of Revenue obligations, and assuming “no state business license” means no license at all — most SC cities require a local one, and retailers need the $50 DOR retail license before their first sale. Filers also budget from stale tax tables (the income tax has fallen every year and restructured entirely for 2026), try to renew the non-renewable name reservation, and mail filings when online approval takes a day.
Online filings through Business Entities Online are typically approved within 24 hours to 2 business days. Mail filings take 2-3 weeks including processing and transit. South Carolina offers no paid expedited service — online filing is the fast option, and it’s fast enough that no one misses the expedite.
Thinking about another state? Compare Wyoming, Delaware, Texas and Florida — or browse all 50 state guides.
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