How to Start a Business in South Carolina
Everything you need to form your South Carolina LLC, corporation, or sole proprietorship, with exact fees, timelines, and step-by-step instructions.
South Carolina allows you to form an LLC for a filing fee of $110. A standard LLC pays no state corporate income tax or state franchise fee, and files no annual report with the Secretary of State. This contrasts with a C corporation, which must pay corporate income tax at 5%.
This guide covers every step from choosing a business structure to registering with the Secretary of State and obtaining the licenses and permits your specific business requires.
Choosing Your South Carolina Business Structure
This is the first decision and it affects everything: taxes, liability, paperwork. If you are unsure, an LLC is the right default for most South Carolina small businesses.
| Entity Type | Liability Protection | Taxation | South Carolina Filing Fee | Annual Cost | Best For |
|---|---|---|---|---|---|
| LLC | Yes | Pass-through | $110 | None for a standard LLC. The SCDOR states that an LLC not... | Most small businesses |
| Corporation | Yes | Double (C-Corp) or pass-through (S-Corp) | $110 | $25 Annual Report of Corporations (Schedule... | Raising investment, stock options |
| Sole Proprietorship | No | Pass-through | $0 | $0 | Freelancers, side hustles |
| Partnership | No | Pass-through | $0 | $0 | 2+ owners (consider an LLC instead) |
8 Steps to Start Your South Carolina Business
- 1
Choose your business structure
LLC, corporation, or sole proprietorship. Each has different costs, tax treatment, and liability protection.
- 2
Pick and reserve your business name
Search the South Carolina Secretary of State database. Reserve for $25 (120 days, nonrenewable).
- 3
Appoint a registered agent
Must have a physical South Carolina street address. Can be yourself (free) or a service ($100 to $300 per year).
- 4
File your formation documents
Articles of Organization for a Domestic Limited Liability Company (S.C. Code Section 33-44-203) ($110) or Articles of Incorporation for a Domestic Business Corporation (S.C. Code Section 33-2-102), filed together with Form CL-1 Initial Annual Report of Corporations ($110) with the South Carolina Secretary of State.
- 5
Get your EIN from the IRS
Free, online, takes about 5 minutes. Do not pay anyone for this.
- 6
Register for a sales tax permit if you sell goods
Through the South Carolina Department of Revenue (SCDOR). State sales tax rate: 6%.
- 7
Get required licenses and permits
South Carolina has no general statewide business license.
- 8
Register for South Carolina taxes
Personal income tax: Graduated. For tax year 2026 the SCDOR lists two brackets: 1.99% on income under $30,000 and 5.21% on income of $30,000 and above (less a...
How Much Does It Cost to Start a Business in South Carolina?
| Item | Cost | Notes |
|---|---|---|
| LLC filing fee (South Carolina Secretary of State) Required | $110 | The South Carolina Business One Stop states that documents filed online through Business Entities Online are returned... |
| Corporation filing fee Required | $110 | If forming a corporation instead |
| Annual report | $0 | Not required in South Carolina |
| Name reservation | $25 | 120 days, nonrenewable |
| Registered agent service | $0 to $300/yr | Free if you serve as your own |
| EIN (IRS) Required | $0 | Always free |
| Business license | Varies | South Carolina has no general statewide business license. |
| Operating agreement | $0 to $500+ | Free template or attorney-drafted |
| Realistic LLC total (year 1) | $110 to $410 |
Start a Specific Business in South Carolina
South Carolina Business Guides
- How to Start an LLC in South Carolina
- How to Start a Corporation in South Carolina
- Sole Proprietorship in South Carolina: How to Start One
- South Carolina Business License: What You Need and How to Get It
- South Carolina Home-Based Business Laws: Zoning, Permits and Rules
- How to Get an EIN in South Carolina
- South Carolina Business Name Search: How to Check and Reserve a Name
- How to Get a Resale Certificate in South Carolina
- South Carolina Registered Agent: Requirements and How to Choose One
- Best LLC Services in South Carolina
- South Carolina Business Taxes Explained for New Owners
- How Much Does It Cost to Start a Business in South Carolina
Why Start a Business in South Carolina?
- Filing Articles of Organization for an LLC with the South Carolina Secretary of State costs $110, one of the lower formation fees in the Southeast.
- A standard South Carolina LLC files no state annual report and pays no franchise or license fee, so recurring state cost after formation is $0.
- Online filings through Business Entities Online are returned within 24 to 48 business hours.
- The statewide sales and use tax rate is 6%, with counties able to add up to 1% if approved by voters.
- The C corporation income tax rate is 5% of South Carolina taxable income, and the annual corporate License Fee has a $25 minimum.
- South Carolina has about 5,478,831 residents (Census Bureau, July 1, 2024) and the 24th largest state economy by GDP, at roughly $350 billion in 2024.
South Carolina Business Resources
Frequently Asked Questions
- How long does it take to form an LLC in South Carolina?
- Filing online through the South Carolina Secretary of State's Business Entities Online portal takes 24 to 48 business hours.
- What does it cost to start an LLC in South Carolina in year one?
- The LLC filing fee is $110. A standard LLC pays no state annual report fee or franchise tax. If you sell tangible goods, you must also obtain a Retail License from the South Carolina Department of Revenue for a $50 one-time fee per location.
- Can a non-resident form an LLC in South Carolina?
- The Secretary of State's published LLC formation requirements do not specify a residency requirement. You can file Articles of Organization online through Business Entities Online.
- What's the cheapest way to start a business in South Carolina?
- Forming an LLC costs $110 in state filing fees. A standard LLC pays no annual state fees or franchise taxes.
- Is an operating agreement required to form an LLC in South Carolina?
- South Carolina requires filing Articles of Organization with the Secretary of State. The state does not mandate an operating agreement as part of the formation filing.