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.
On this page, you’ll learn about the following:
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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 | $299 + 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
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.
Maintaining a limited liability company (LLC) in South Carolina involves various costs that owners should be aware of before establishing a business. Limited liability, created in 1997, is an optimal business structure for enterprises seeking a balance between formality and simplicity; still, it demands compliance with state regulations, such as tax and reporting requirements.
One reason LLCs attract businesses owners is that they enjoy personal asset protection in case of company debts or legal issues, leaving their personal items outside creditors’ reach. However, strategies, such as an operating agreement, are necessary to maintain this liability protection, which may entail some costs. For instance, businesses may seek legal assistance while drafting agreements to customize specific provisions as an LLC cannot operate without one.
Another maintenance-related fee includes filing fees, especially higher for new filings than renewal filings. Owners should note the recurrent payment requirement that may extend to business supervision filings, doing business as filings, and nonprofit incorporation filings. Any accounts needing restructuring, such as amending articles or application of conversion, may call for further payment of fees before the business introduces alterations legally.
Tax compliance can also impact an organization’s financial status. Business entities in South Carolina need to pay state tax and file income tax if earn income over $14,000 or owe federal tax. Thus, startups need to establish tax identification numbers for their LLC that also carry no cost. Owners should confirm the appropriate tax laws rooted in their business model to avoid unforeseen annual tax maintenance or penalty processes. The Secretary of State Business Opportunity Protection Division should furnish a complex tax analysis available to companies.
Furthermore, the Department of Commerce may affect business financing via grant support and business licenses by appropriating general commercial or profession certificate licenses for individuals making use of their authorized trade. Businesses may assume clearance will pursue as per Secretary State’s negative details home disclosed earlier, which describes people engaged in denied objects with penalties for each infringement instance.
Finally, in regards to intellectual property, any trademark and patents reserved under an LLC name may cause additional maintenance costs. As well as copyright infringement cases may arise, illustrating again organizing expenses necessary for personnel trouble focused entirely on safeguarding various forms of IP under a particular business name.
In conclusion, setting up and managing an LLC requires essential costs needed for operations vital to daily activities as a successful business. The state legislation has created specific methods for full and beneficial organization of LLC’s to minimize the required cost of maintenance allowing businesses to thrive further on their knowledge and principles to remain relevant positively in the ever-evolving modern business world.
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.
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.
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