Starting a business in South Carolina usually means filing Articles of Organization (LLC) or Articles of Incorporation with the South Carolina Secretary of State, getting an EIN, and registering with the South Carolina Department of Revenue (SCDOR) through MyDORWAY for sales tax, withholding and a retail license. As of October 2026, the state filing fee for an LLC is $110, and South Carolina LLCs taxed as partnerships or sole proprietorships do not file an annual report with the Secretary of State.
Local licensing matters more here than in many states. Most South Carolina cities and counties require a business license, and since 2022 those licenses follow a standardized statewide schedule.
Updated October 2026.
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Best Business Formation Services in South Carolina (2026)
Our ranked picks for forming a business in South Carolina are below, starting with Mainstay Filing. Each entry lists the yearly price and what the service covers.
| Rank | Provider | Best for | Price | What’s included |
|---|---|---|---|---|
| 1 | Mainstay Filing | Forming an LLC with the agent, EIN and annual report included | $199/year + state fee at cost | LLC formation filing, registered agent for the year, EIN application, annual report preparation and filing |
| 2 | SC Registered Agent.org | South Carolina registered agent service only | $99/year | $99 per year, flat; in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online |
| 3 | South Carolina Registered Agent.co | South Carolina registered agent service only | $99/year | in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online |
1. Mainstay Filing
Mainstay Filing is our top pick in South Carolina. It costs $199/year + state fee at cost and covers lLC formation filing, registered agent for the year, EIN application, annual report preparation and filing. The price stays the same every year, with no add-on menu.
2. SC Registered Agent.org
SC Registered Agent.org is a South Carolina registered agent service at $99/year. It provides $99 per year, flat; in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online. It’s a fit if you only need a registered agent rather than full formation help.
3. South Carolina Registered Agent.co
South Carolina Registered Agent.co is a South Carolina registered agent service at $99/year. It provides in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online. It’s a fit if you only need a registered agent rather than full formation help.
South Carolina at a glance (October 2026)
| Item | South Carolina detail |
|---|---|
| Filing office | South Carolina Secretary of State, Division of Business Filings |
| Online filing | Business Entities Online |
| LLC Articles of Organization | $110 |
| Corporation Articles of Incorporation | $135 total, including the Initial Annual Report (CL-1) and minimum license fee |
| LLC annual report | None for LLCs taxed as partnerships or disregarded entities |
| Corporation annual report | Filed with SCDOR with the income tax return; minimum $25 license fee |
| LLC name reservation | $25 for 120 days |
| Retail license | $50 per location, one time |
| Sales tax | 6% statewide, plus local taxes |
| DBA | No state registration |
Fees are set in the South Carolina Uniform Limited Liability Company Act and Title 33, Chapter 1. For a full first-year budget, see Mainstay Filing’s South Carolina LLC costs.
Start with the right structure
How you structure the business shapes your paperwork in South Carolina more than usual, because LLCs and corporations are treated very differently after formation:
- Sole proprietorship: No Secretary of State filing. You register with SCDOR for taxes and get local licenses, and you are personally liable for business debts.
- General partnership: Similar to a sole proprietorship, with liability shared among partners.
- LLC: $110 to form and, if taxed as a partnership or disregarded entity, no annual state report afterward. That makes it one of the lowest-maintenance LLCs in the country, at least as far as state filings go. Our guide to starting an LLC in South Carolina covers the filing in more detail.
- Corporation: $135 to form, then an annual report and license fee filed with SCDOR alongside the corporate income tax return. South Carolina’s corporate income tax rate is 5%, per the SCDOR.
An LLC that elects to be taxed as a corporation is treated like a corporation for South Carolina tax purposes, including the annual report with SCDOR.
Naming your business
South Carolina LLC names must include “limited liability company”, “limited company”, “LLC”, “L.L.C.”, “LC” or “L.C.”, and must be distinguishable from other names on the Secretary of State’s records. Corporate names need “corporation”, “incorporated”, “company” or “limited”, or an abbreviation.
Before filing:
- Search the Secretary of State’s business entity database, or follow our South Carolina business name search guide.
- Check domain and social handle availability with Namechk.
- Search the USPTO for federal trademarks.
If you are still brainstorming, try the business name generator. An LLC name reservation costs $25 and lasts 120 days; it cannot be renewed.
What about DBAs?
According to South Carolina Business One Stop, the state of South Carolina does not register DBAs. Instead, list your trade name on your local business license, on your SCDOR business tax application and as the trade name on your EIN application. Check with your city or county clerk about any local requirements.
Appoint a registered agent
Every South Carolina LLC must keep a designated office in the state and an agent with a South Carolina street address. The agent can be an individual South Carolina resident or a business entity authorized in the state. Changing the agent later costs $10.
You can serve as your own agent if you live in South Carolina, but your address becomes public. Out-of-state owners need a professional agent, and many in-state owners use one too. Mainstay Filing includes a South Carolina registered agent for the first year in its formation package.
File your Articles
LLCs file Articles of Organization with the Secretary of State, online through Business Entities Online or on paper. The $110 fee is set by statute, and South Carolina has no publication requirement.
Corporations file Articles of Incorporation together with the Initial Annual Report of Corporations (Form CL-1). The $135 total covers a $10 Secretary of State fee, a $100 tax and the $25 minimum corporate license fee.
After filing, sign an operating agreement (LLC) or adopt bylaws (corporation). These stay in your records rather than going to the state, but banks and partners often ask for them.
Get an EIN
Apply for a free Employer Identification Number on the IRS website. If you use a DBA, enter it as your trade name on the application.
Register with SCDOR through MyDORWAY
The South Carolina Department of Revenue handles state tax registration through MyDORWAY. Most new businesses need one or more of these:
- Retail license. Required for all retail sales, including online sales. It costs $50 per location and is a one-time fee as long as the owner and location stay the same, per the SCDOR.
- Sales and use tax. The state rate is 6%, and many counties add local sales taxes, according to the sales tax page.
- Withholding, once you have employees.
Individual income tax changes in 2026 are worth knowing about if your LLC’s profits pass through to you. For tax year 2026, South Carolina uses two brackets, 1.99% and 5.21%, starting from federal adjusted gross income, according to the SCDOR.
Hiring employees in South Carolina
South Carolina has no state minimum wage law, so covered employers follow the federal minimum of $7.25 per hour. Employers also:
- Register with the Department of Employment and Workforce for unemployment insurance through SUITS.
- Report new hires to the state within 20 days.
- Carry workers’ compensation if they regularly employ four or more people, under SC Code 42-1-360. Businesses with fewer than four employees, or under $3,000 in prior-year payroll, are exempt.
Local business licenses
South Carolina has no statewide general business license, but most cities and counties require one. Under the Business License Tax Standardization Act, which took effect in 2022, local licenses follow a common framework:
- The license year runs May 1 through April 30, and renewals are due before May 1.
- The tax is based on gross income from the prior year (new businesses estimate the rest of the year), with rates set by business class.
- Businesses can renew local licenses through the state’s Local Business License Renewal Center.
The SCBOS business license page explains the process, and the South Carolina SBDC offers free advice. Professional and occupational licenses, such as contractor or cosmetology licenses, come from the state Department of Labor, Licensing and Regulation.
Banking and insurance
Open a business bank account with your filed Articles, EIN and operating agreement to keep business and personal money apart. Insurance worth considering includes general liability, professional liability, commercial auto and property coverage, plus workers’ compensation once you reach four employees.
What does a South Carolina business file each year?
Ongoing requirements depend on your structure:
- LLCs taxed as partnerships or disregarded entities: no annual report with the Secretary of State. Keep your registered agent current and file your tax returns.
- Corporations and LLCs taxed as corporations: file the annual report with SCDOR as part of the corporate income tax return, due the 15th day of the fourth month after year end (April 15 for calendar-year companies). The annual license fee is $15 plus $1 for each $1,000 of capital stock and paid-in surplus, with a $25 minimum, under Title 12, Chapter 20.
- Every business with a local license: renew before May 1.
Building a website for your South Carolina business
Secure a domain that matches your business name and publish a simple website. These website builders make it easy to start:
FAQs
How much does it cost to start an LLC in South Carolina?
As of October 2026, the state filing fee for South Carolina Articles of Organization is $110. South Carolina LLCs taxed as partnerships or disregarded entities do not file an annual report with the Secretary of State, so there is no yearly state report fee. Plan for local business license fees and a $50 SCDOR retail license if you sell goods.
Do South Carolina LLCs file annual reports?
Most do not. The South Carolina LLC Act has no annual report requirement for LLCs taxed as partnerships or disregarded entities. An LLC that elects to be taxed as a corporation is treated as a corporation for state tax purposes and files an annual report with the Department of Revenue alongside its corporate income tax return.
How do I register a DBA in South Carolina?
South Carolina does not register DBAs at the state level. Instead, list your trade name on your local business license, on your Department of Revenue business tax application and as the trade name on your federal EIN application. Ask your city or county clerk about any local requirements before you start using the name.
Do I need a business license in South Carolina?
There is no statewide general business license, but most South Carolina cities and counties require a local business license. Under the state’s standardization law, the license year runs May 1 through April 30, and the tax is based on gross income. Retailers also need a $50 retail license from the Department of Revenue.
What is the sales tax rate in South Carolina?
South Carolina’s statewide sales and use tax rate is 6%, and many counties add local sales taxes, so the combined rate depends on location. Businesses register to collect sales tax and get their $50 retail license through MyDORWAY, the Department of Revenue’s online portal.
Is workers’ compensation required in South Carolina?
Employers who regularly employ four or more people in South Carolina must carry workers’ compensation insurance. Businesses with fewer than four employees, or with less than $3,000 in total payroll in the prior year, are exempt under state law. Many smaller employers still buy coverage to protect against injury claims.
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