What Is an LLC in South Carolina?
Under the South Carolina Uniform Limited Liability Company Act of 1996 (S.C. Code Ann. § 33-44-101 et seq.), a limited liability company is a distinct legal entity that separates the personal assets of its owners (members) from the debts and obligations of the business. S.C. Code Ann. § 33-44-303 provides that “the debts, obligations, and liabilities of a limited liability company, whether arising in contract, tort, or otherwise, are solely the debts, obligations, and liabilities of the company,” and that a member or manager is not personally liable simply by holding that role.
South Carolina recognizes two management structures. A member-managed company, by default, gives every member equal rights in running the business. A manager-managed company is one designated as such in its articles of organization, centralizing control in one or more managers who may or may not be members. For federal tax purposes, single-member LLCs are treated as disregarded entities and multi-member LLCs as partnerships, though either may elect corporate treatment by filing IRS Form 8832.
South Carolina does not impose an entity-level income tax or franchise tax on pass-through LLCs, and LLCs are not required to file annual reports with the Secretary of State. That combination makes ongoing compliance comparatively light for LLCs that retain their default tax classification.
South Carolina LLC Name Search
The name of a South Carolina LLC must be distinguishable on the records of the Secretary of State from every corporation, limited partnership, and limited liability company already organized or authorized to transact business in the state. S.C. Code Ann. § 33-44-105 requires the name to contain one of these approved designators: “Limited Liability Company,” “Limited Company,” “L.L.C.,” “LLC,” “L.C.,” “LC,” or “Ltd. Co.” — the statute also permits abbreviating “Limited” as “Ltd.” and “Company” as “Co.”
The distinguishability standard compares the proposed name against the Secretary of State’s full database of active business entities. If a name is identical to or not meaningfully different from an existing filing, it will be rejected. Name unavailability is the most common reason for rejection in business filings. Words such as “bank,” “insurance,” and “university” may require evidence of the appropriate license or approval before the Secretary of State will accept them.
Organizers can check preliminary name availability through the Business Entities Online search tool. A clear result does not guarantee that the Secretary of State will approve the name when the articles of organization are reviewed. To hold a name before filing, an organizer may file an Application to Reserve a Limited Liability Company Name and pay a $25 fee. Under S.C. Code Ann. § 33-44-106, the reservation lasts for a nonrenewable 120-day period.
Choosing an LLC Registered Agent in South Carolina
Every LLC organized or registered to do business in South Carolina must designate and continuously maintain an agent for service of process, the state’s statutory term for a registered agent, along with a street address for that agent within the state. S.C. Code Ann. § 33-44-108 also requires the LLC to maintain a designated office in South Carolina, though the office need not be a place of business.
The agent’s function is straightforward: it accepts service of process, legal notices, and demands on behalf of the LLC. Any lawsuit or government enforcement action directed at the company is delivered through this agent. Eligibility under § 33-44-108(b) is limited to:
- Individual agent: A natural person who is a resident of South Carolina.
- Entity agent: A domestic corporation, another LLC, or a foreign corporation or foreign LLC authorized to transact business in the state.
The address for the agent must be a physical street address, not a P.O. Box. The agent for service of process is named on the articles of organization and must sign the form, confirming acceptance of the designation. If the agent resigns under S.C. Code Ann. § 33-44-110, the resignation takes effect on the thirty-first day after the statement is filed. Should the LLC fail to maintain an agent, or if the agent cannot be found with reasonable diligence, the Secretary of State becomes the LLC’s default agent for service of process.
Note: An LLC without a functioning agent risks being entirely unable to receive service of process. Default judgments entered because the LLC never received notice of a lawsuit can be difficult and expensive to set aside.
LLC Filing Requirements in South Carolina
A South Carolina LLC begins its existence when the Secretary of State files the articles of organization. Under S.C. Code Ann. § 33-44-202, one or more persons may organize an LLC by delivering executed articles to the Secretary of State, and unless a delayed effective date is specified, the LLC’s legal existence starts on the filing date.
The formation document titled Articles of Organization – Limited Liability Company – Domestic requires the following information under S.C. Code Ann. § 33-44-203:
- The LLC’s name, including an approved designator
- The street address of the LLC’s initial designated office in South Carolina
- The name, street address, and signature of the initial agent for service of process
- The name and address of each organizer
- Whether the LLC is a term company, and if so, the specified term
- Whether the LLC is manager-managed, and if so, the name and address of each initial manager
- Whether any members have agreed to be personally liable for company debts under § 33-44-303©
- A delayed effective date, if desired (up to 90 days after filing)
The filing fee is $110 by mail. Online filing through the Business Entities Online system adds a $15 electronic records access fee, bringing the total to $125. Online filings are typically processed faster than paper submissions.
- Online: File through the Business Entities Online system. No pre-existing account is required. Payment is by credit card.
- By Mail: Send two completed copies of the form and a check or money order for $110 payable to “SC Secretary of State” to the South Carolina Secretary of State, Attn: Corporate Filings, 1205 Pendleton Street, Suite 525, Columbia, SC 29201.
The Secretary of State does not publish a fixed processing timeline, but online filings are generally processed more quickly than mail submissions. Upon acceptance, the Secretary of State endorses the original record and sends a receipt to the LLC or its representative.
South Carolina does not require LLCs to file annual reports with the Secretary of State. This is a significant practical advantage—unlike corporations, which must file annual reports with the Department of Revenue, pass-through LLCs have no recurring Secretary of State reporting obligation after formation.
How Much Does it Cost to Create an LLC in South Carolina?
| Cost | Mandatory or Optional | Amount | When It Applies | Official Source |
| Articles of Organization filing fee (by mail) | Mandatory | $110 | At formation | SC Secretary of State – Downloadable Paper Forms |
| Electronic records access fee (online filing only) | Mandatory if filing online | $15 | At formation (added to the $110 base fee for a total of $125) | SC Secretary of State – Business Entities Online |
| Name reservation (Application to Reserve a LLC Name) | Optional | $25 | Before formation, it holds the name for 120 days | S.C. Code Ann. § 33-44-106 |
| Certificate of Existence | Optional | $10 | As needed to verify good standing | SC Secretary of State – Business Entities |
| Retail License (sales tax permit) | Mandatory if making retail sales | $50 | Before commencing taxable retail sales | SCDOR – Retail License |
| Annual report | — | — | South Carolina does not require LLCs to file annual reports | — |
| Commercial registered agent service | Optional | Varies by provider | At or after formation | — |
LLC Operating Agreement in South Carolina
South Carolina does not require an LLC to have a written operating agreement, but it gives the agreement broad legal force when one exists. S.C. Code Ann. § 33-44-103 provides that “all members of a limited liability company may enter into an operating agreement, which need not be in writing, to regulate the affairs of the company and the conduct of its business, and to govern relations among the members, managers, and company.” Where the operating agreement is silent, the statute’s default rules fill the gaps.
The operating agreement is not filed with the Secretary of State; it is an internal document retained by the LLC and its members. Despite being optional, it is the single most important governance document for an LLC with two or more members, because South Carolina’s statutory defaults may not match the members’ intentions. Under S.C. Code Ann. § 33-44-404, the default for a member-managed company is that each member has equal rights in management, and most decisions are made by majority vote. Under S.C. Code Ann. § 33-44-405, distributions before dissolution must be made “in equal shares”—regardless of each member’s capital contribution. And under S.C. Code Ann. § 33-44-502, a transfer of a distributional interest does not entitle the transferee to become a member or exercise any member rights.
A well-drafted operating agreement replaces the equal-shares distribution rule with an allocation that reflects actual capital contributions and negotiated economics, restricts or conditions the transferability of membership interests, defines the scope of the manager’s authority, sets out admission and withdrawal procedures, and establishes how the LLC will dissolve and wind up. Even a sole member should adopt one in writing—it documents the member’s separation from the entity and can be dispositive if a creditor tries to disregard the LLC’s separate existence.
How to Get an EIN for an LLC in South Carolina
A federal Employer Identification Number is the nine-digit tax identification number the Internal Revenue Service assigns to an LLC for use on tax returns, bank accounts, and employment filings. Every LLC that hires employees, files certain excise tax returns, or withholds taxes on income paid to a nonresident alien must obtain one. A single-member LLC with no employees can technically operate under the member’s Social Security Number, but obtaining an EIN is strongly recommended—banks and vendors typically require it, and it avoids exposing a personal SSN on business documents.
The IRS EIN Online Application generates the number immediately at the end of a short questionnaire. The tool is available Monday through Friday, 6:00 a.m. to 1:00 a.m.; Saturday, 6:00 a.m. to 9:00 p.m.; and Sunday, 6:00 p.m. to midnight (all Eastern Time). The applicant must hold a valid SSN or ITIN, and the LLC must already be on file with the South Carolina Secretary of State.
Applicants who cannot use the online tool may complete IRS Form SS-4 and either fax it to the IRS (approximately 4 business days for processing) or mail it (approximately 4 to 5 weeks). The form requires the name and Taxpayer Identification Number of the LLC’s responsible party—the individual who owns, controls, or directs the entity and its funds. There is no fee to obtain an EIN.
Registering for State Taxes in South Carolina
South Carolina does not impose an entity-level income tax on LLCs that retain their default federal tax classification as disregarded entities or partnerships. Instead, each member reports and pays South Carolina income tax on that member’s share of the LLC’s income on the member’s individual return. The state’s individual income tax rate reaches a top marginal rate that applies to taxable income above a specified threshold.
If the LLC elects to be taxed as a corporation, it becomes subject to South Carolina’s corporate income tax under S.C. Code Ann. Title 12, Chapter 6, and must file a return with the South Carolina Department of Revenue. An LLC electing S-corporation treatment must also file an initial annual report (Form CL-1) with the Department of Revenue, an obligation that does not apply to pass-through LLCs.
Any LLC that will sell tangible personal property or taxable services at retail must obtain a Retail License from the South Carolina Department of Revenue before making its first taxable sale. The license fee is $50 per location; it is nonrefundable, and it does not expire—though the LLC must update it if the business location changes. Registration is completed through the MyDORWAY Business Tax Application. South Carolina’s statewide sales tax rate is six percent, with local option taxes that may increase the rate in some jurisdictions.
| Tax Type | Agency | Registration Method | Fee |
| Individual income tax (member-level) | SC Department of Revenue | Members’ file on individual returns | — |
| Corporate income tax (if LLC elects corporate treatment) | SC Department of Revenue | MyDORWAY Business Tax Application | — |
| Retail License (sales and use tax) | SC Department of Revenue | MyDORWAY Business Tax Application | $50 per location |
| Withholding tax (employer) | SC Department of Revenue | Same MyDORWAY application | — |
Note: South Carolina requires LLCs to register with the Department of Revenue through MyDORWAY before the LLC begins collecting sales tax, withholding income tax from employees, or conducting any other activity that triggers a state tax obligation. The LLC must have a valid federal EIN before it can register.
Registering as an Employer in South Carolina
An LLC that hires employees in South Carolina must register for state unemployment insurance, income tax withholding, and, once it reaches the four-employee threshold, workers’ compensation coverage. These obligations take effect with the first hire, though workers’ compensation becomes mandatory only at a higher headcount.
- Unemployment Insurance: The LLC must register with the South Carolina Department of Employment and Workforce (DEW) for an Employer Account Number. Employers that pay wages in covered employment are required to maintain this account and file quarterly wage reports. Registration is completed online through DEW’s Unemployment Insurance Tax system.
- Income Tax Withholding: The LLC must also register with the South Carolina Department of Revenue as a withholding agent through the MyDORWAY Business Tax Application. South Carolina requires employers to withhold state income tax from employee wages and remit those amounts on a schedule determined by the total tax liability—monthly, quarterly, or annually.
- Workers’ Compensation Insurance: South Carolina requires employers that regularly employ four or more employees to carry workers’ compensation insurance, as confirmed by the SC Workers’ Compensation Commission. Coverage must be obtained through a commercial carrier licensed to write workers’ compensation policies in South Carolina or through the state’s assigned risk program administered by the National Council on Compensation Insurance. Businesses with fewer than four employees or annual payrolls under $3,000 are generally exempt.
- New Hire Reporting: Employers must report all new hires and rehires to the South Carolina New Hire Reporting Center within 20 days of the employee’s first day of work.
| Obligation | Agency | Registration Method |
| Unemployment insurance | SC Department of Employment and Workforce | DEW Online Employer Registration |
| State income tax withholding | SC Department of Revenue | MyDORWAY Business Tax Application |
| Workers’ compensation insurance | Private carrier (overseen by SC Workers’ Compensation Commission) | Purchase policy from a licensed insurer |
| New hire reporting | SC Department of Social Services | SC New Hire Reporting Center |
The LLC must also meet federal employer obligations: filing IRS Form 941 (quarterly payroll tax return), paying FUTA (Federal Unemployment Tax Act) taxes, and completing Form I-9 (Employment Eligibility Verification) for each new hire.