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.
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 primary costs associated with maintaining an LLC in South Carolina is the annual report fee. Every LLC in the state is required to file an annual report with the Secretary of State’s office and pay a fee to keep the company in good standing. This fee is due on or before the anniversary of your LLC’s formation date each year, and missing the deadline can result in additional fees and potential dissolution of the LLC.
Another crucial cost to consider is the business license fee. Depending on the county in which your LLC operates, you may be required to obtain a business license to legally conduct business in that area. These fees can vary significantly depending on the size and type of business, so it’s essential to research the specific requirements in your county and factor this cost into your budget.
In addition to the annual report and business license fees, LLCs in South Carolina must also pay state taxes. Depending on the structure of your LLC and its annual revenue, you may be subject to a variety of state taxes, including income tax and sales tax. It’s crucial to stay up to date on the latest tax laws and regulations to ensure your LLC remains compliant and avoids any potential penalties.
Another hidden cost that many business owners overlook is professional fees. Hiring an attorney or accountant to help with the ongoing maintenance of your LLC can add up quickly. While these professionals can provide valuable guidance and assistance, their services often come at a premium. It’s important to weigh the costs of hiring outside help against the potential savings and benefits they can provide to your business.
Overall, the cost of maintaining an LLC in South Carolina can vary widely depending on a variety of factors. While the initial set-up costs may be relatively low, ongoing fees and taxes can quickly add up. It’s essential for business owners to budget accordingly and stay informed about the financial obligations required to keep their LLC in good standing.
By understanding the costs associated with maintaining an LLC in South Carolina, business owners can ensure their company remains compliant and successful in the long run. Taking the time to research the specific requirements and fees relevant to your LLC will ultimately save you time, money, and potential headaches in the future.
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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