LLC Cost in South Carolina – How Much to Pay for an LLC

Perhaps you are hoping to form an LLC in SC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in South Carolina.

South Carolina LLC Cost of Filing

Here are the costs involved in forming an LLC in South Carolina.

Cost of Filing Formation Certificates

The South Carolina Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the South Carolina Secretary of State.

South Carolina Domestic LLC

• Online Filing costs $110.
• Annual Report not required
• Name Reservation fee costs $25
• By Mail: Fill out the application form, and send it to South Carolina Secretary of State’s Office, Attn: Corporate Fillings, 1205 Pendleton Street, Suite 525, Columbia, SC 29201. Costs $110.

South Carolina Foreign LLC

• Online Filing costs $110.
• Annual Report not required
• Name Reservation fee costs $25
• By Mail: Fill out the application form, and send it to South Carolina Secretary of State’s Office, Attn: Corporate Fillings, 1205 Pendleton Street, Suite 525, Columbia, SC 29201. Costs $110.

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

South Carolina LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in South Carolina, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

Business Permits and Licenses

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the South Carolina Department of Revenue for regulatory boards or agencies requiring licensing.

Taxes Payable to South Carolina Department of Revenue

There are a number of taxes that are to be paid in South Carolina while registering your LLC. The taxes are levied by Federal & State governments.

State Income Tax

The State Income tax is levied on all the earnings you draw from your LLC. The earnings you make shall be taxed through your personal tax return. The standard income tax rate in South Carolina ranges from 3% to 7.9%, calculated on the basis of the earning you make. You can apply for all the standard allowances and deductions.

State Sales & Use Tax

Any seller of Tangible goods, Goods like Furniture, cars, electronics, etc., or a service provider company has to pay the sales & use tax in South Carolina. The current state sales & use tax rate on LLC in South Carolina is 6%

Federal Self-Employment Tax

The Federal Self-employment tax is levied on all the members or managers of the LLC. Similar to State Tax, this Federal Tax has also been calculated basis all the earnings you draw from the Company. The Federal self-employment tax rate in South Carolina is 15.3 percent.

Federal Income Tax

If you are registering your LLC in South Carolina, you have to pay Income tax even to the Federal Government. This tax is calculated on the basis of your earnings, the income tax bracket your LLC falls, the deductions, & the manner/ mode of filing.

The Federal Income Tax is levied on all the profits your LLC makes after calculating the deductions & allowances such as Healthcare or Retirement Plans.

Employee & Employer Taxes

The Employee & Employer Taxes may vary, depending on various factors, e.g., the amount, number of employees, etc. Every LLC in South Carolina, which has several employees earning a monthly salary, is bound to pay these taxes.

Cost Comparison Between States

The neighboring states of South Carolina are North Carolina & Georgia. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.

States	Filing Fee	Annual/Biennial Fee	Sales Tax
South Carolina	$110	Not Required	6%
North Carolina	$125	$200	4.75%
Georgia	$100	$25	4%

Based on the kind of industry you LLC operated in, your LLC will be liable to some other taxes & duties. For Example, if your LLC is in the sector of import & export, you have to pay the import-export duty. You should consult with a professional to verify the tax rates or business costs of registering an LLC in South Carolina.

Other Costs

• South Carolina Name Reservation: $25 by mail
• Doing Business As (DBA): $2 for filing by mail
• Certified Document Copies: $10 + $2 per page.
• Certified of Good Standing: $10
• Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
• Online workspace: at least $4.20/mo for GSuite.
• Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
• Dissolution of South Carolina LLC: $10

F.A.Qs

How Much Does It Cost to Maintain an LLC in South Carolina

To maintain an LLC in South Carolina you do not need to pay an annual fee. However, state income tax at 3% to 7.9%, sales & use tax at 6% and federal taxes are levied.

One of the primary costs to consider when maintaining an LLC in South Carolina is the filing fee for the Articles of Organization. This fee is required when initially registering your LLC with the state, and it provides the legal framework for your business entity. It is crucial to be prepared for this cost upfront, as it is essential for establishing your LLC in the eyes of the law.

In addition to the initial filing fee, LLCs in South Carolina are also required to pay an annual fee to the Secretary of State for the privilege of doing business in the state. This annual fee is a recurring cost that must be budgeted for each year to ensure that your LLC remains in good standing and compliant with state regulations. Failure to pay this fee can result in penalties, fines, or even the dissolution of your LLC.

Another significant cost to maintain an LLC in South Carolina is the ongoing paperwork and administrative tasks required to comply with state regulations. Keeping accurate records, filing annual reports, and adhering to tax requirements are all essential aspects of running a successful LLC. It is essential to stay organized and stay on top of these responsibilities to avoid any costly mistakes or legal issues.

Beyond the tangible costs associated with maintaining an LLC in South Carolina, there are also intangible costs to consider. Time and effort are valuable resources that must be invested in managing and growing your LLC. Whether it is attending to administrative tasks, networking with clients and partners, or developing your business strategy, running an LLC successfully requires dedication and commitment.

Overall, while there are costs involved in maintaining an LLC in South Carolina, the benefits far outweigh the expenses. The limited liability protections, tax advantages, and flexibility that an LLC offers make it an attractive business structure for many entrepreneurs. By understanding the costs associated with running an LLC and being prepared to meet these financial and administrative obligations, you can set yourself up for success in the competitive business landscape of South Carolina.

In Conclusion

The cost of South Carolina is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.