How Much Does an LLC Cost in South Carolina?

How much is the South Carolina LLC formation filing fee?

Filing the formation paperwork for a South Carolina LLC costs $110. You pay this fee to the South Carolina Secretary of State when you file the paperwork, and it’s the same amount whether you’re a domestic or foreign LLC (from another state doing business in South Carolina).

You can file online through the Secretary of State website, which is the quickest method. To form an LLC, you’ll need to submit a legal document called Articles of Organization. Once you pay, you’ll get a stamped copy of your paperwork, making your LLC official. This fee is non-refundable, so double-check everything before filing.

How much do LLC Articles of Organization cost in South Carolina?

Your South Carolina Articles of Organization are the documents that you file during formation with the Secretary of State—the filing fee is $110. In the Articles of Organization, you’ll include key details like the name of your business, the names and addresses of the LLC members (owners), and the LLC’s physical street address and mailing address. 

Unlike many other states, South Carolina does not have an expedited option for LLC formation, but filing online is fast and easy. Keep in mind that after filing, South Carolina also does not have any annual LLC filing requirements like some other states.

How much is the South Carolina annual report fee?

If your South Carolina LLC is taxed as a C corporation or S corporation, you will need to file an annual report, called a CL-1, with your taxes. For those LLCs, the report costs $25. The report provides updated information about your business, such as changes in ownership or contact information. For most LLCs, though, no annual paperwork is needed.

How much is the annual LLC fee in South Carolina?

There is no annual report fee for a South Carolina LLC. Since there’s no required annual report for LLCs, you won’t have to worry about yearly state fees. However, if your LLC is taxed as a corporation, you’ll need to file an annual report, and that costs $25.

How much does a registered agent cost in South Carolina?

You can be your own registered agent if you live in South Carolina, and it won’t cost you anything. A registered agent is simply someone who receives legal documents for your LLC. However, many South Carolina business owners hire a professional registered agent service, which can cost between $200 and $350 per year. 

Registered agent services can accept and forward legal documents, notify you of deadlines, and even scan and upload paperwork. For example, LegalZoom offers registered agent services for $249 per year. Hiring a registered agent can be helpful if you’re not a South Carolina resident or don’t want to handle legal notices personally. Larger LLCs might also select their lawyer as their registered agent.

How much does a South Carolina seller’s permit cost?

In South Carolina, a seller’s permit, also called a sales tax permit or retail permit, costs $50. Whether you have a physical store or sell products online, even if you only have occasional sales, you’ll need this permit, as it allows your business to collect sales tax from customers. The permit doesn’t expire, but you’ll need one for each store location. 

You can get this permit when you submit your Business Tax Application, and other permits might also be required, depending on what you sell. For example, you’ll need a special license for alcohol or tobacco sales. Make sure to check local requirements for other permits related to your industry.

How much do local business licenses cost in South Carolina?

Local South Carolina business licenses vary depending on your city or county. The cost is often based on your business’s revenue and industry. It’s different from the fee you pay to the South Carolina Secretary of State when you file your Articles of Organization—that fee legally registers your business entity with the state, but a local business license gives you permission to operate in that specific area. Check with your local municipality to see whether you need one and how much it will cost.

While there is no state-level general “business license,” like most states, South Carolina does require licenses for certain occupations. The South Carolina Department of Labor, Licensing and Regulation (LLR) keeps a list of professions and the associated fees. For example, a new real estate license could cost between $50 to $250, depending on your position, with additional exam fees and renewal fees.

How much does business insurance cost in South Carolina?

The total cost of South Carolina business insurance varies widely depending on what you need. You can expect to pay about $540 per year for workers’ compensation, which is required by the state for any business with four or more employees. It covers medical expenses and lost wages if an employee gets hurt on the job and helps protect you from lawsuits and fines.

If you have business-owned vehicles, you’re also required to have commercial auto insurance, which averages about $1,700 per year. It covers accidents, damages, and liability related to your business vehicles.

Depending on your business, it can be a good idea to invest in other types of insurance as well:

• General liability insurance: About $500 per year. It protects against claims of bodily injury, property damage, or advertising mistakes. It’s essential for most businesses, especially those that interact with customers or clients.
• Commercial property insurance: About $800 per year. This insurance covers your business’ physical assets, like buildings, equipment, and inventory, in case of fire, theft, or natural disasters. It’s important for any business with property, such as stores, offices, or warehouses.
• Errors and omissions (E&O) insurance: About $700 per year. Also called professional liability insurance, E&O is for businesses that provide professional services, such as consulting, real estate, or financial advising. It protects against claims of negligence or mistakes in your work.
• Cyber liability insurance: About $1,740 per year. This policy covers recovery costs and legal fees after data breaches and cyberattacks that expose sensitive information. Any business that handles personal data, such as online stores, should consider cyber liability insurance.

What is the South Carolina franchise tax?

The franchise tax doesn’t apply to your LLC in South Carolina unless it’s taxed as a C corporation. LLCs are typically considered “pass-through” entities, meaning owners pay tax on the LLC’s profits through their own personal income taxes, instead of paying a corporate tax. 

However, if your South Carolina LLC has elected to be taxed as a corporation, you will be subject to the state franchise tax, which is typically 5% of your corporate income. South Carolina business taxes are some of the lowest in the nation for all types of entities.

Other South Carolina fees and business costs you might encounter

Some South Carolina LLC costs are standard and required, but there are other optional fees you may face. These can help you secure your business name, prove your status, or handle important paperwork. Here’s a breakdown of additional costs you might want to keep in mind.

Name reservation

Before you file your Articles of Organization, you need to do a South Carolina Secretary of State business search. You won’t be able to register the name if it’s too similar to an existing business entity.

Once you have a name, you can reserve it for 120 days by filing an Application to Reserve a Limited Liability Company Name. The filing fee is $25. Although your LLC name becomes official once you file the Articles of Formation, reserving a name early ensures no one else can take it while you’re preparing to file.

DBA (doing business as)

A DBA, or “doing business as,” allows your LLC to operate under a different name than the one registered with the South Carolina Secretary of State. It’s useful if your company operates multiple businesses or you want a more marketable name than the one registered. 

South Carolina does not register DBAs at the state level. Instead, each city or county may have its own process, and fees vary. Most places will have you list it on your local business license application. Reach out to your local business office to see what’s required in your area.

Certificate of Good Standing

A Certificate of Good Standing, also known as a Certificate of Existence, proves that your South Carolina LLC is in compliance with state laws. It costs $15 and is often required when applying for loans or registering your business in another state. You can request it online through the South Carolina Secretary of State’s office.

Operating agreement

While not required for a South Carolina LLC, having an operating agreement is a smart move. This legal document outlines how your LLC will run, how decisions will be made, and how any legal disputes will be handled. An LLC operating agreement also helps protect your personal assets by establishing a clear separation between you and your business, so it can even be useful for a single-member LLC. If you’re looking for convenience, you can create an operating agreement online through LegalZoom.

Certified copies

Certified copies are official duplicates of important business documents, like your South Carolina Articles of Formation. You might need them to open a business bank account or for legal purposes. 

In South Carolina, certified copies cost $3, plus 50 cents for each additional page. If you request electronic records, there’s an extra fee ranging from $2.50 to $15, depending on the total cost of the first fee. Busy business owners can also have LegalZoom handle requesting certified copies.

What is the total cost to start an LLC in South Carolina?

The total South Carolina LLC cost for required filings is only $110 to $160, depending on if you need the $50 seller’s permit. If you’re a very small business and aren’t required to have workers’ compensation or other types of insurance, that could be all you pay, since South Carolina doesn’t have annual reports. However, most LLCs in South Carolina will have additional costs.

So, how much is an LLC in South Carolina, really? Here’s a breakdown of all of the potential fees:

• South Carolina Secretary of State LLC formation filing fee: $110
• Seller’s permit: $50
• Registered agent service (optional): $249
• Business insurance: Varies widely ($0 up to $5,000+ per year if you need all coverages)
• Name reservation filing fee (optional): $25
• Certificate of Good Standing (optional): $15
• LLC operating agreement (optional): $99
• Certified copies: Varies based on the number of pages

Overall, South Carolina is a very affordable state for forming a limited liability company, which eases the stress on LLC owners. 

FAQs

How long does it take to set up an LLC in South Carolina?

Setting up an LLC in South Carolina generally takes one to two business days if filed online. If you file by mail, the process can take five to seven business days or more, depending on the Secretary of State’s office. Once your documents are approved, your LLC is officially registered.

Does it cost more to register a foreign LLC in South Carolina?

No, the filing fee to register a foreign LLC in South Carolina is the same as for a domestic LLC, which is $110. Both foreign and domestic LLCs must pay this fee when filing their formation documents. However, foreign LLCs must also provide a Certificate of Good Standing from their home state, which might involve additional fees.

Can you get grants to help cover the cost of starting a business in South Carolina?

Yes, there are grants available in South Carolina to help LLC owners and other small businesses, though they are often industry-specific or focused on certain groups or industries. These grants can be competitive, and they may require detailed applications or specific business plans. Local economic development agencies or the South Carolina Department of Commerce are good places to explore grant opportunities.

What’s the cheapest way to start an LLC in South Carolina?

The cheapest way to start an LLC in South Carolina is by filing the Articles of Organization yourself online for $110. You can reduce costs by acting as your own registered agent and handling tasks like creating your own operating agreement without outside services. Using free or low-cost online resources, such as the South Carolina operating agreement template, can help further minimize startup expenses.