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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.
LLC Service | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $0 + State Fees |
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 | $0 + State Fees |
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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
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
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 initial costs of setting up an LLC in South Carolina is filing the Articles of Organization with the Secretary of State. The filing fee for this document can vary depending on the state, but typically ranges from $110 to $135. Additionally, South Carolina requires LLCs to file an annual report with the Secretary of State, which carries a fee of $45. These fees may seem small compared to other startup costs, but they can quickly add up over time.
Another ongoing cost of maintaining an LLC in South Carolina is the annual state registration fee, which is required to keep the LLC in good standing. The fee for this registration can range from $0 to $60, depending on the LLC’s gross income. It is important for business owners to stay current on this fee to avoid penalties and keep their LLC in compliance with state regulations.
Beyond the state-specific fees, there are other costs associated with maintaining an LLC that business owners should be aware of. For example, LLCs are required to have an Operating Agreement in place, which outlines the ownership and management structure of the LLC. While not required by law, it is a good practice to have this document drafted by a lawyer to ensure it is thorough and compliant with state regulations.
Additionally, business owners should budget for annual accounting and tax preparation fees for their LLC. While these costs can vary depending on the complexity of the business, it is important to have accurate financial records to avoid any audits or penalties from the Internal Revenue Service.
Finally, business owners should also consider the cost of any licenses or permits required to operate their LLC in South Carolina. Depending on the type of business, there may be additional fees associated with obtaining these licenses or permits from local or state agencies.
Overall, the costs of maintaining an LLC in South Carolina can vary depending on the size and nature of the business. While some of these costs may seem small individually, they can quickly add up over time. It is important for business owners to budget for these expenses and stay current on all requirements to keep their LLC in good standing and avoid any potential legal issues.
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.