How to Form an LLC in South Carolina (2026)
Reviewed by DocDraft Legal Team · South Carolina · Last updated 2026-08-06
A limited liability company (LLC) is a business structure that legally separates the company from the people who own it, so the owners are generally not personally responsible for the company's debts. Forming one in South Carolina means filing a formation document with a state agency and paying its fee to bring the company into legal existence. In South Carolina you create an LLC by filing the Articles of Organization with the Secretary of State and paying a $110 filing fee. What makes South Carolina stand out is how light the ongoing burden is. The state does not require a routine annual report for an LLC taxed as a pass-through entity, it charges no franchise tax on such LLCs, and it does not require newspaper publication. South Carolina LLCs are governed by the South Carolina Uniform Limited Liability Company Act of 1996, in Title 33, Chapter 44 of the state code. This guide explains what an LLC is, the exact South Carolina steps and fee, and the requirements that keep the company in good standing.
Find out where you stand in South Carolina
Where are you in forming your LLC?
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How do you form an LLC in South Carolina?
File the Articles of Organization with the South Carolina Secretary of State and pay the $110 filing fee. You must name a registered agent with a South Carolina street address who can accept legal papers. The LLC comes into existence once the Secretary of State files the Articles of Organization.
How much does it cost to form an LLC in South Carolina?
The core cost is the $110 fee to file the Articles of Organization with the Secretary of State, paid once. Reserving a name in advance is optional and costs $25. South Carolina charges no franchise tax and requires no routine annual report for an LLC taxed as a pass-through entity, so there is no standard yearly state fee to keep it active.
Does South Carolina require an annual report for an LLC?
No. South Carolina does not require a routine annual report for an LLC that is taxed as a pass-through entity. An LLC that elects to be taxed as a corporation files with the Department of Revenue instead. This is different from many states that require every LLC to file an annual or biennial report to stay in good standing.
Does South Carolina require newspaper publication to form an LLC?
No. South Carolina does not require an LLC to publish notice of its formation in a newspaper. This is unlike New York, Arizona, and Nebraska, where publication is a condition of forming or operating. In South Carolina the Articles of Organization filing with the Secretary of State is the only formation step, with no separate publication.
South Carolina LLC formation at a glance
You form a South Carolina LLC by filing the Articles of Organization with the Secretary of State and paying a $110 filing fee. What sets South Carolina apart is how little the state asks of an LLC after formation. There is no franchise tax on an LLC taxed as a pass-through entity, and the state does not require a routine annual report for such an LLC, so there is no standard recurring state filing fee to keep the company active. An LLC that elects corporate tax treatment files separately with the South Carolina Department of Revenue. Every LLC must name and continuously maintain a registered agent with a physical South Carolina street address to accept lawsuits and official notices. South Carolina does not require newspaper publication. You may reserve a proposed name with the Secretary of State for $25 while you prepare your paperwork, though reservation is optional. The governing statute is the South Carolina Uniform Limited Liability Company Act of 1996, Title 33, Chapter 44 of the state code.
Forming a two-owner South Carolina LLC, step by step
Suppose two friends in Charleston want to open a small design studio as an LLC. First they search the South Carolina Secretary of State's business name search to confirm their name is available and includes a designator such as LLC, and they can reserve the name with the Secretary of State for $25 while they prepare paperwork. Next they appoint a registered agent: one owner lives in South Carolina and agrees to serve, using a South Carolina street address, not a P.O. box, where legal papers can be delivered during business hours. They then file the Articles of Organization with the Secretary of State and pay the $110 filing fee. The LLC legally exists once the Secretary of State files it. Because they have two members, they also write an operating agreement setting each owner's percentage and how profits split, even though South Carolina does not require them to file it. They apply to the IRS for a free EIN so the partnership can file taxes and open a bank account. Because their LLC is taxed as a pass-through entity, South Carolina does not require a routine annual report and charges no franchise tax, so there is no standard yearly state filing to calendar. If they later elect corporate tax treatment, they will confirm the added Department of Revenue obligations that come with that choice.
Relevant Laws
South Carolina Uniform Limited Liability Company Act of 1996 (S.C. Code Title 33, Chapter 44)
This act governs the formation, management, and dissolution of every South Carolina LLC. It sets who may form an LLC, the required contents of the Articles of Organization, the registered agent requirement, and the default rules for member-managed and manager-managed companies. It is South Carolina's adoption of the Uniform Limited Liability Company Act.
S.C. Code § 33-44-203 (Articles of Organization)
Requires an LLC to be formed by delivering Articles of Organization to the South Carolina Secretary of State for filing. The articles state the LLC's name, the address of its initial designated office, the name and street address of its initial registered agent, and whether the company is manager-managed. The company is formed when the Secretary of State files the articles.
S.C. Code § 33-44-108 (Registered agent and designated office)
Requires every South Carolina LLC to designate and continuously maintain a registered agent and a designated office in the state. The registered agent, an individual residing in South Carolina or an authorized entity, receives service of process and official notices for the company. The agent's South Carolina street address appears in the Articles of Organization.
S.C. Code § 33-44-1204 (Filing fees)
Sets the fees the Secretary of State collects for LLC filings. The fee to file the Articles of Organization of a limited liability company is $110. The same section lists fees for other filings such as name reservation and amendments.
IRS federal tax classification (default pass-through)
The IRS does not tax the LLC as a separate category. By default a single-member South Carolina LLC is disregarded and taxed like a sole proprietorship, and a multi-member LLC is taxed as a partnership, with income passing through to the owners. An LLC may instead elect S corporation or C corporation treatment. An LLC that makes that corporate election also takes on additional South Carolina Department of Revenue filing obligations.
Regional Variances
How forming an LLC in South Carolina differs from other states
No routine annual report for pass-through LLCs
This is the headline difference. South Carolina does not require a routine annual report for an LLC taxed as a pass-through entity. Many states require an annual or biennial report, such as California's biennial Statement of Information, to keep the LLC in good standing. In South Carolina a pass-through LLC has no equivalent recurring state filing, though an LLC that elects corporate tax treatment files with the Department of Revenue.
No franchise tax on pass-through LLCs
South Carolina charges no franchise tax on an LLC taxed as a pass-through entity. States like California impose a minimum annual franchise tax regardless of income, which can dwarf the one-time filing fee over the life of the company. A pass-through South Carolina LLC has no comparable standing charge from the state.
No newspaper publication requirement
South Carolina does not require you to publish notice of formation in a newspaper. New York, Arizona, and Nebraska do, which adds cost and a deadline. A South Carolina LLC is complete once the Secretary of State files the Articles of Organization, with no publication step.
Formation document and filing office
South Carolina uses the Articles of Organization, filed with the Secretary of State, for a $110 fee. Some states call the document a Certificate of Formation or Certificate of Organization, and some route filings through a Division of Corporations or a separate business services agency rather than the Secretary of State.
Corporate tax election changes the obligations
The light-touch treatment applies to an LLC taxed as a pass-through entity. If a South Carolina LLC elects to be taxed as a corporation, it takes on South Carolina Department of Revenue filing and tax obligations that a pass-through LLC does not have. Confirm current requirements with the Department of Revenue before making a corporate election.
Suggested Compliance Checklist
Confirm your LLC name is available and compliant
Before filing days after startingSearch the South Carolina Secretary of State's business name search to confirm your desired name is not already in use and that it includes a required designator such as LLC or Limited Liability Company. Avoid restricted words that need special approval. You can reserve an available name with the Secretary of State for $25 while you prepare your Articles of Organization.
Appoint a registered agent
Before filing days after startingSouth Carolina requires a registered agent with a physical South Carolina street address who is available during business hours to accept legal documents. Decide whether you, a co-owner who lives in South Carolina, or a commercial registered agent service will serve. You will name the agent in the Articles of Organization, so settle this first.
File the Articles of Organization with the Secretary of State
To create the LLC days after startingFile the Articles of Organization with the South Carolina Secretary of State and pay the $110 filing fee. The LLC legally exists only once the Secretary of State files it. Keep the filed confirmation as proof of formation.
Adopt an operating agreement
At or soon after formation days after startingPut the ownership percentages, profit split, management structure, and exit rules in writing. South Carolina's LLC act lets members set their own rules through an operating agreement, but you do not file it with the state. It governs how the LLC runs and overrides the act's default rules. Attorney review of the agreement is available as an option through DocDraft.
Get a federal EIN from the IRS
Before opening a bank account or hiring days after startingApply for an Employer Identification Number free on the IRS website. Multi-member LLCs, LLCs with employees, and LLCs electing corporate tax treatment need one. Single-member LLCs with no employees usually get one anyway to open a business bank account and keep business and personal finances separate.
Confirm your state tax obligations with the Department of Revenue
After formation days after startingA South Carolina LLC taxed as a pass-through entity has no routine annual report and no franchise tax, so there is no standard yearly state filing to keep it active. If you elect to be taxed as a corporation, confirm the added filing and tax obligations with the South Carolina Department of Revenue, since a corporate election changes what the state requires.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm your LLC name is available and compliant | Search the South Carolina Secretary of State's business name search to confirm your desired name is not already in use and that it includes a required designator such as LLC or Limited Liability Company. Avoid restricted words that need special approval. You can reserve an available name with the Secretary of State for $25 while you prepare your Articles of Organization. | - | Before filing |
| Appoint a registered agent | South Carolina requires a registered agent with a physical South Carolina street address who is available during business hours to accept legal documents. Decide whether you, a co-owner who lives in South Carolina, or a commercial registered agent service will serve. You will name the agent in the Articles of Organization, so settle this first. | - | Before filing |
| File the Articles of Organization with the Secretary of State | File the Articles of Organization with the South Carolina Secretary of State and pay the $110 filing fee. The LLC legally exists only once the Secretary of State files it. Keep the filed confirmation as proof of formation. | - | To create the LLC |
| Adopt an operating agreement | Put the ownership percentages, profit split, management structure, and exit rules in writing. South Carolina's LLC act lets members set their own rules through an operating agreement, but you do not file it with the state. It governs how the LLC runs and overrides the act's default rules. Attorney review of the agreement is available as an option through DocDraft. | llc-operating-agreement | At or soon after formation |
| Get a federal EIN from the IRS | Apply for an Employer Identification Number free on the IRS website. Multi-member LLCs, LLCs with employees, and LLCs electing corporate tax treatment need one. Single-member LLCs with no employees usually get one anyway to open a business bank account and keep business and personal finances separate. | - | Before opening a bank account or hiring |
| Confirm your state tax obligations with the Department of Revenue | A South Carolina LLC taxed as a pass-through entity has no routine annual report and no franchise tax, so there is no standard yearly state filing to keep it active. If you elect to be taxed as a corporation, confirm the added filing and tax obligations with the South Carolina Department of Revenue, since a corporate election changes what the state requires. | - | After formation |
Frequently Asked Questions
An LLC, or limited liability company, is a business structure that legally separates the company from its owners, called members. The members are generally not personally responsible for the company's debts or lawsuits, so a creditor usually cannot reach a member's home or personal savings for a business obligation. South Carolina LLCs are created under the South Carolina Uniform Limited Liability Company Act of 1996, in Title 33, Chapter 44 of the state code. It pairs that liability protection with pass-through taxation and lighter paperwork than a corporation.
You file the Articles of Organization with the South Carolina Secretary of State and pay a $110 filing fee, set by Section 33-44-1204 of the state code. That single filing brings the company into legal existence; the LLC exists once the Secretary of State files the articles, not when you submit them. The articles list the LLC's name, its designated office, and its registered agent. Keep the filed confirmation as proof of formation.
No, not on an LLC taxed as a pass-through entity. South Carolina imposes no franchise tax on such an LLC, so there is no minimum yearly state tax simply to keep the company active. This is unlike states such as California, which charge a minimum annual franchise tax regardless of income. An LLC that elects to be taxed as a corporation takes on South Carolina Department of Revenue obligations instead, so confirm current rules there before making that election.
Yes. Reserving a name is optional, but you can hold an available name with the South Carolina Secretary of State for a $25 fee while you prepare your Articles of Organization. First search the Secretary of State's business name database to confirm the name is not already taken and that it includes a required designator such as LLC or Limited Liability Company. Reservation is not required to form the LLC; you can also name it directly in the articles.
Under Section 33-44-108, every South Carolina LLC must name and continuously maintain a registered agent with a physical street address in the state, not a P.O. box. The agent must be available during business hours to accept lawsuits and official state mail. You can serve as your own agent, name a co-owner who lives in South Carolina, or hire a commercial registered agent service. You list the agent in the Articles of Organization.
The formation steps are identical: both file the Articles of Organization with the Secretary of State for $110 and name a registered agent. The difference is mostly tax and internal governance. By default the IRS treats a single-member South Carolina LLC as a disregarded entity taxed like a sole proprietorship, while a multi-member LLC is taxed as a partnership. An operating agreement matters more with several owners, and attorney review of that agreement is available as an option through DocDraft.
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