How to Form an LLC in South Carolina (2026)

1. 1Choose a name for your LLC and verify availability by searching the South Carolina Secretary of State business entity database. Your name must include "Limited Liability Company," "LLC," or "L.L.C."
2. 2Appoint a registered agent with a physical street address in South Carolina.
3. 3File Articles of Organization with the South Carolina Secretary of State. The filing fee is $110. Online filing processes in 1-2 business days — among the fastest in the country.
4. 4Obtain an EIN (Employer Identification Number) from the IRS at no cost.
5. 5Create an operating agreement. Not legally required in South Carolina but strongly recommended.
6. 6Open a business bank account with your Articles of Organization, EIN, and operating agreement.
7. 7Obtain any required state and local business licenses or permits.
8. 8South Carolina does not require annual reports for LLCs, so no initial report filing is needed.

• ✓Obtain an EIN from the IRS (free, apply online at irs.gov)
• ✓Open a dedicated business bank account
• ✓Register for South Carolina state taxes with the Department of Revenue
• ✓Get business insurance (general liability at minimum)
• ✓Set up an accounting system to track income and expenses
• ✓Apply for any local business licenses or permits

Your South Carolina LLC name must contain "Limited Liability Company," "LLC," or "L.L.C." Restricted words like "Bank," "Insurance," or "Trust" require additional licensing. The name must be distinguishable from existing business entities in South Carolina.

South Carolina LLCs are pass-through entities by default. Members pay South Carolina individual income tax on their share of profits (rates from 0% to 6.4%). South Carolina does not impose a franchise tax or annual report fee on LLCs, making ongoing state costs $0. The one-time $110 filing fee is your only state cost.

LLC vs. other structures in South Carolina

South Carolina is an excellent value for LLCs: $110 to file with zero ongoing state costs. No annual report and no franchise tax. Online filings process in 1-2 business days. South Carolina is one of the best states for cost-conscious LLC formation.

• •South Carolina does not require annual reports — no annual state filing is needed
• •Maintain a registered agent with a physical address in South Carolina at all times
• •Keep your operating agreement current and update it when membership changes
• •File South Carolina state income tax returns for all members receiving pass-through income
• •Renew any local business licenses or permits as required

South Carolina has higher-than-average LLC costs. Weigh the total cost of formation and annual maintenance against your expected revenue before deciding.

In general, you should form your LLC in the state where you physically live and conduct business. Forming in a "tax-friendly" state like Wyoming, Delaware, or Nevada sounds appealing, but if you operate in South Carolina, you will still need to register as a foreign LLC there — paying fees in both states.

An LLC is almost always a better choice than operating as a sole proprietorship because of the personal liability protection it provides. However, if your LLC is highly profitable, you should talk to a CPA about electing S-Corp tax treatment to potentially reduce your self-employment tax burden.

What South Carolina LLC Owners Need to Know

• •South Carolina has no annual report or franchise tax — ongoing filing costs are $0
• •Online filings process in 1-2 business days, among the fastest in the country
• •One-time $110 filing fee is your only state cost

Official South Carolina Resources

• South Carolina Secretary of State — Online Filings
• SC Business Entity Filing Portal