How to Get an LLC in South Carolina

Learn how to start a South Carolina LLC

It’s easy to form an LLC in South Carolina online yourself. Just follow these steps:

  1. Name Your LLC
  2. Choose a Registered Agent
  3. File the SC Articles of Organization
  4. Create an LLC Operating Agreement
  5. Get an EIN
  6. File a BOI Report

Or, use a trusted formation service:

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Starting a South Carolina LLC Is Easy

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You can start a South Carolina LLC online by filing the Articles of Organization with the Secretary of State. The cost to create an LLC in South Carolina is $110.

Follow our How to Get an LLC in South Carolina guide below to get started.

To learn how to form an LLC in any state, visit our How to Start an LLC guide.

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Step 1: Create A Name For Your South Carolina LLC

Before you register your South Carolina LLC, you’ll need to come up with a name. Your business name needs to be catchy for branding purposes and legitimate for legal purposes.

Naming Your LLC

First, brainstorm some possibilities. Use our LLC name generator to get the ideas flowing.

Next, make sure your name meets South Carolina guidelines:

  • it contains the words limited liability company, limited company, or the abbreviation LLC or L.L.C.
  • it doesn’t contain restricted words or phrases (these often include words like bank, attorney, and university) without approval
  • it must be distinguishable from any other entity or trade name registered in South Carolina
  • full list of naming guidelines in Section 33-44-105 of SC LLC statute

Next, do a South Carolina LLC name search with the Secretary of State to find out if your name is available in South Carolina.

If your business name is available and meets guidelines, you’ll be able to register it when you file your SC Articles of Organization with the Secretary of State.

Is the URL available? Before you commit 100% to a name, check to see if there’s a good web domain available.

We recommend buying your domain right away because even if launching a business website isn’t on your radar right now, it will be soon.

 

Domain Name Search

Step 2: Appoint A Registered Agent

When you file your Articles of Organization, you’ll need to list a registered agent. A registered agent’s job is to accept legal documents like service of process and tax notices for your LLC. 

Your registered agent can be a person or a registered agent service. You can act as your own registered agent, but many business owners choose to use a registered agent service.

Here are a few things to think about before you decide to act as your own registered agent:

  • You’ll need to be available during normal (9 am – 5 pm) business hours at the address you provide
  • If you run your business from home, you’ll have to make your personal address public
  • You could be served with a lawsuit in front of your family or coworkers

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Step 3: File Your South Carolina LLC Articles of Organization

It’s time to officially form your LLC by filing your South Carolina Articles of Organization with the Secretary of State.

You can file online with the Secretary of State or fill out a hard copy of Articles of Organization and mail it in. The filing fee is $110. 

You’ll need to know the following information to complete each Article:

  1. Entity Name and Address
  2. Registered Agent Name and Registered Office Address
  3. Organizers
  4. Governing Authority Type (LLC Management Structure)
  5. Member Debt Liability
  6. LLC Duration and Effective Date

For more detailed help with completing the form, visit our South Carolina Articles of Organization guide.

Mail Your Articles of Organization:

Send the form and payment (payable to the Secretary of State) to:

South Carolina Secretary of State’s Office
Attn: Corporate Fillings
1205 Pendleton Street
Suite 525
Columbia, SC 29201

How long does it take to get a South Carolina LLC approved? LLC processing time is 24 hours if filed online and 5 to 7 business days if filed by mail.

Step 4: Create A South Carolina LLC Operating Agreement

Creating a South Carolina LLC operating agreement is the only way to legally lock down your LLC’s management and ownership structure. Having an operating agreement in place will give you something to return to if a dispute or lawsuit arises. 

Even single-member LLCs benefit from having an operating agreement.

Your operating agreement should outline the following:

  • Each member’s responsibilities
  • How new members will be admitted
  • How existing members may transfer or terminate their membership
  • How profits and dividends will be distributed

You can add as many provisions as you want, as long as they don’t conflict with South Carolina business law. Take a look at our What is an Operating Agreement guide to learn more.

Download a template or create a custom Free Operating Agreement using our tool.

Step 5: Get an EIN

An Employer Identification Number (EIN) is like a Social Security number (SSN) for your company. The IRS and the state of South Carolina will use this number to track your business activity.

Your EIN will come in handy when it’s time to:

  • Open a business bank account
  • File Federal and State taxes
  • Hire employees

The best way to get an EIN for your LLC in South Carolina is by using the free online application on the IRS website.

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Step 6: File a Beneficial Ownership Information Report

When forming a South Carolina LLC, one of the important steps is to complete the Beneficial Ownership Information (BOI) Report with the Financial Crimes Enforcement Network (FinCEN).

This report — also known as the FinCEN BOI report — is designed to combat money laundering, terrorist financing, and other illicit activities by requiring LLCs to disclose information about their beneficial owners.

This is free to file through the FinCEN website

New LLCs must complete this filing within 90 days of formation. Existing LLCs must file before January 1, 2025. 

Failure to complete this filing requirement will result in a $500 per day fine.

Steps After Forming an LLC in South Carolina

After forming your South Carolina LLC, it’s important to:

Open A Business Bank Account

A business bank account helps separate personal expenses and company expenses, which is required to maintain your South Carolina LLC’s corporate veil. A corporate veil protects your personal assets from creditors in potential lawsuits against your LLC or Business.

Learn more by reading this guide to Banking for Entrepreneurs. For a multi-member LLC, you’ll also want to set up capital accounts for LLC members. We also recommend checking out our review of the best business bank accounts.

Get A Business Credit Card

A business credit card will help separate personal and business expenses while building your company’s credit history. A strong credit history will be useful for raising capital in the form of venture capital, angel investment, or small business loans.

Set Up Business Accounting

Hiring a business accountant is one of the best ways to ensure you’re taking advantage of LLC tax benefits; possibly saving you and your business thousands of dollars per year.

When forming an LLC in South Carolina, it’s a good idea to start a relationship with a business accountant as soon as you start your business to help set your company up for success.

Get Business Insurance

Business insurance helps manage risk. The most common forms of business insurance are general liability, professional liability, and workers’ compensation.

Find out the real cost of getting insurance for your business. Get a free quote or call 855-965-3168.

Keep Your Company Compliant

Research South Carolina Business Licenses and Permits

To operate an LLC in South Carolina, you will need to comply with federal, state, and local government regulations such as health permits, building permits, and signage permits. 

Business licensing and permit requirements vary from state to state. To get started, visit our How to Get a Business License in South Carolina guide. To help facilitate this process, you can also utilize a business license service.

File Your South Carolina Annual Report (If Applicable)

LLCs that are taxed as C corporations or S corporations must file an annual report with the Secretary of State each year. This is submitted alongside the LLC’s state tax returns. LLCs taxed as disregarded entities or partnerships do not have to file an annual report with the state.

Understand South Carolina State Tax Requirements

South Carolina businesses selling a physical product are generally required to register for a seller’s permit through the South Carolina Department of Revenue website. Visit our South Carolina Sales Tax guide to learn more about seller’s permits and South Carolina sales tax.

If you have employees in South Carolina, you will also need to register for unemployment insurance tax through the South Carolina Department of Employment and Workforce website as well as sign up for employee withholding tax through the South Carolina Department of Revenue website.

Understand Your South Carolina LLC’s Federal Tax Requirements

Most South Carolina LLCs will need to report their income to the Internal Revenue Service (IRS) each year using Form 1065: Partnership Return (multi-member LLCs) or Form 1040 – Schedule C (single-member LLCs).

How you pay yourself will affect your federal taxes. Visit our guide to learn more about how to pay yourself from your LLC.

Know Your South Carolina LLC’s Federal Tax Election Options

Pass-through taxation entails a business’s profits passing through to the LLC member’s individual tax returns. Like a sole proprietorship, an LLC is taxed as a pass-through entity, also known as a disregarded entity. 

Once this process is completed and after any tax-deductible expenses are taken out, the LLC members pay self-employment taxes and income tax on their portion of the business income. 

Alternatively, South Carolina LLCs can choose to elect to be taxed as an S corporation (S corp) or C corporation (C corp). If S corporation tax status is elected, LLC members can be taxed as employees of the business, potentially reducing tax burden.

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