How Much Does an LLC Cost in South Carolina? (2024)
Starting an LLC in South Carolina will cost you at least $110 in state fees for filing the Articles of Organization and $0 unless taxed as an S-Corp.
But there’s more to consider.
In addition to this initial formation cost, you may face other expenses, such as registered agent services, securing a distinctive LLC name, obtaining a DBA, and any necessary licenses or taxes.
Let’s dive deeper into the specifics.
How Much Does an LLC Cost in South Carolina?
Starting an LLC in South Carolina comes with several costs. Here’s a breakdown of what you can expect:
- Filing Fee: The fee to file the Articles of Organization is $110. This is a one-time payment submitted to the South Carolina Secretary of State.
- Annual Report Fee: Unless you’ve decided to tax your LLC as a corporation, you won’t need to file an annual report in South Carolina, which means no annual report expenses.
- Registered Agent Services: If you hire a registered agent, expect to pay between $100 and $300 annually, depending on the service.
- LLC Name Reservation: If you want to reserve your LLC name before filing, it costs $25.
- South Carolina Certificate of Existence: Obtaining this certificate costs around $10.
- DBA (Doing Business As): The cost of getting a DBA (“doing business as” name) in South Carolina varies by county. South Carolina is one of the few states that doesn’t register DBAs at the state level.
- Licenses and Permits: You may need various licenses depending on your business type. Costs vary widely based on location and business activities.
- Taxes: Be aware that LLCs are subject to state taxes. These include income tax and possibly sales tax, depending on your business.
LLC Costs in South Carolina (Formation Fees)
| South Carolina LLC Requirements | Cost |
|---|---|
| LLC Business Name Search | $0 |
| Articles of Organization | $110 |
| Operating Agreement (optional) | $0 (with Northwest) |
| EIN Number | $0 (free from IRS) |
| Annual Report | $0 unless taxed as S-Corp |
| LLC Name Reservation Fee (optional) | $25 |
| South Carolina Certificate of Good Standing (optional) | $10 |
| Foreign LLC Registration (optional) | $110 |
| Fictitious Name (DBA) (optional) | Varies |
| Taxes | Varies |
| State Business License Fees | Varies |
| Registered Agent Services (optional) | $0-$125 (Northwest) |
| LLC Formation Services (optional) | $39 |
| Total LLC Costs in South Carolina | $110 – $419 |
South Carolina LLC filing fees table
Total LLC costs in South Carolina range from $110 to $419. If you do everything yourself and skip the optional extras, you might only spend around $110.
However, if you decide to pay for additional services and requirements, your costs could go up to between $250 and $419.
The first mandatory expense is the $110 fee for filing the Articles of Organization, which is essential for officially establishing your LLC. Additionally, there is no annual report fee unless your LLC is taxed as an S-Corp.
Now, let’s discuss the optional costs.
Conducting an LLC business name search is free, and obtaining an Employer Identification Number (EIN) is also free from the IRS. An Operating Agreement is recommended but can be obtained at no cost using services like Northwest. Reserving your LLC name will typically cost $25.
You may also want a South Carolina Certificate of Good Standing, which costs $10. Registering a foreign LLC in South Carolina incurs a fee of $110.
Regarding registered agent services, you can either act as your agent at no cost or hire a professional service, which typically ranges from $100 to $300.
South Carolina LLC Business Name Search Cost ($0)
When starting an LLC in South Carolina, you can check if your desired business name is available at no cost. This is an important step before you officially file your Articles of Organization.
Visit the South Carolina Secretary of State website for a name search. The user-friendly search tool lets you quickly see if your preferred name is already used.
After confirming the name’s availability, you can reserve it if needed. Name reservations typically cost $25 and last for 120 days.
South Carolina Articles of Organization ($110)
You must file the Articles of Organization to form an LLC in South Carolina. This document officially creates your LLC and must be submitted to the Secretary of State.
The filing fee for this document is $110.
When you file the Articles of Organization, you confirm several details about your business. These details include the LLC’s name, address, and registered agent information. Providing accurate information is crucial for the approval of your application.
Once you submit your paperwork, the South Carolina LLC processing time varies by filing method. Online filings take 1-2 business days, while mail filings take 2-4 weeks.
LLC Operating Agreement Cost in South Carolina ($0 with Northwest)
Creating an LLC operating agreement is important for your business. It details ownership and management rules. In South Carolina, you can prepare this agreement without any cost.
Having an operating agreement can help prevent misunderstandings between members later. Even though you don’t have to pay for it, consider it a valuable part of setting up your business.
You may choose to draft the agreement yourself to save even more money. Many templates are available online to guide you through the process. Just ensure that your agreement is tailored to your specific needs.
Registered Agent Fee ($0-$300/year)
You can act as your registered agent in SC at no cost. To do this, you will need to provide your name and address. This option lets you manage your legal correspondence directly.
If you prefer to hire a professional South Carolina registered agent services, the costs typically range from $100 to $300 per year. These services often provide additional perks, like privacy protection and reminders for important filings.
For example, companies like LegalZoom charge about $249 annually, while ZenBusiness offers services for $199 annually.
A notable option is Northwest Registered Agent, which offers a free first year if you hire them to form your LLC. After the first year, their renewal fee is $125. This competitive pricing makes them an attractive choice for many new LLC owners.
EIN Cost in South Carolina ($0 from the IRS website)
When you start an LLC in South Carolina, you might wonder about the cost of an Employer Identification Number (EIN). The good news is that applying for an EIN is free. You can get it directly from the IRS without any charge.
Once your application is processed, you will receive your EIN. This number is essential for opening a business bank account and filing taxes for your LLC.
South Carolina Annual Report none ($0 unless taxed as S-Corp)
In South Carolina, LLCs do not need to file an annual report. This means you won’t face annual report fees or paperwork, simplifying the process for many business owners.
If you choose to have your LLC taxed as an S-Corporation, that’s when things change. In this case, you are required to file an Initial Annual Report of Corporations. This report comes with a fee of $25.
LLC Name Reservation Fee in South Carolina ($25)
In South Carolina, you can reserve your LLC name for a fee of $25. This reservation helps you secure your business name before officially registering your LLC.
You can reserve your name online or by mail. If you choose to send a paper form, it will take longer to process. The name reservation is valid for up to 120 days. This time allows you to prepare your LLC documents without losing your chosen name.
Fictitious Name/DBA Cost in South Carolina (varies)
If you plan to operate your business under a name different from your legal name, you’ll need to register a DBA or “Doing Business As.” The cost for this varies by county in South Carolina.
The fees often depend on your file location for sole proprietors and partnerships. You may also need to consider additional costs, such as hiring a notary public.
The DBA cost for LLCs, corporations, or LLPs usually includes filing fees varying by county. It’s always a good idea to check with your local county clerk’s office for the exact costs in your area.
Once filed, your DBA is typically valid for five years. Make sure to renew your DBA before it expires to avoid any interruptions in your business operations.
South Carolina Certificate of Existence ($10)
In South Carolina, a Certificate of Existence is important for your LLC. It shows that your business is registered and legally recognized by the state. This document can be needed for various reasons, such as opening a bank account or securing loans.
Obtaining a Certificate of Existence costs $10. This fee applies whether you request it online or by mail. You can easily request this document through the website of the South Carolina Secretary of State.
South Carolina Foreign LLC Registration Fee ($110)
If you plan to run your business in South Carolina but your LLC is registered elsewhere, you must register as a South Carolina foreign LLC. This allows your out-of-state business to operate legally within South Carolina.
The registration fee for a foreign LLC in South Carolina is $110. When you apply for a certificate of authority, this fee is paid to the South Carolina Secretary of State.
To complete the process, you must submit the necessary documents from your home state, including the Articles of Organization. This paperwork establishes your business’s legal status.
South Carolina State Business License Fee (varies)
In South Carolina, there isn’t a single state business license that covers all businesses. Depending on what your LLC does, you might need specific licenses. Each type of business may have its own requirements and fees.
For example, if your LLC is advertising a business opportunity, you must file a Registration and/or Biennial Renewal Application. This application costs $100.
If your business involves selling goods, you may need a tax license. A Retail License costs $50, while an Arts & Crafts License is $20. The fees for these licenses can vary depending on the specifics of your business.
Make sure to research any other licenses your LLC may need. Always stay informed about the local regulations that apply to your business type. Having the necessary permits to operate legally in South Carolina is crucial.
South Carolina LLC Taxes (varies)
In South Carolina, LLCs are typically taxed as pass-through entities, meaning the LLC itself doesn’t pay income tax. Instead, the gains and losses of the LLC are reported on your personal income tax return.
The state income tax rate varies based on earnings, ranging from 0% for lower income levels to 7% for higher income levels. Additionally, as a member of an LLC, you’ll be responsible for federal self-employment tax at 15.3%, which includes 12.4% for Social Security and 2.9% for Medicare.
For LLCs that choose to be taxed as corporations, a 5% corporate income tax applies.
Your total tax burden may also include:
- Federal taxes
- Local income taxes
- Business taxes
- Sales and use tax
- Payroll tax (if you employ others)
- Property tax (if your LLC owns the property)
The specific taxes you need to pay can differ widely based on factors like your industry and the level of business activity. It’s wise to consult with a tax professional to get a clear picture of your responsibilities.
South Carolina LLC reinstatement fee ($25)
If your South Carolina LLC has been administratively dissolved or is inactive, you can reinstate it by paying a reinstatement fee of $25. This fee is required to process your Application for Reinstatement.
In addition to the reinstatement fee, you must address any overdue taxes and penalties. You may also need to pay an extra $60 for a Certificate of Tax Compliance if applicable. This certificate shows that all your taxes are up to date.
South Carolina LLC dissolution fee ($10)
When dissolving your LLC in South Carolina, a filing fee of $10 is required. This is a one-time payment made to the South Carolina Secretary of State.
The process is quite straightforward. You file the necessary dissolution documents, and this fee is paid simultaneously. Your payment ensures that your LLC is officially closed and all legal obligations are met.
South Carolina LLC Change of Registered Agent fee ($10)
If you need to change the registered agent for your LLC in South Carolina, there is a fee of $10. This fee applies when you submit the necessary form to update your registered agent information.
The registered agent is the person or business designated to receive legal papers for your LLC. Keeping this information current ensures you receive important notices and documents.
Once you complete the form, submit it with the $10 fee. After processing, you will have successfully updated your registered agent details.
What is the Cheapest Way to Start South Carolina LLC?
Starting an LLC in South Carolina can be done in a few different ways. You can handle everything yourself or use a service to assist you.
Each method has its own costs and benefits.
The cheapest method is to register your LLC directly with the Secretary of State of South Carolina. The basic filing fee is $125. This method saves you money, as you won’t pay for extra services. If you’re organized and comfortable with paperwork, this is the least expensive route.
Another option is to use an online service like ZenBusiness or Northwest. These companies often charge around $100 to $300 for their assistance, plus the state filing fee. While you save time and reduce your stress with their help, it isn’t as cheap as doing it yourself.
The downside of doing it yourself is the chance of making mistakes in the paperwork. If errors occur, it may lead to additional fees or delays. Using an online service reduces this risk but raises your costs.
Should You Use an LLC Formation Service in South Carolina? (here’s why)
Starting an LLC can be exciting but also a bit overwhelming. Using an LLC formation service, like Northwest Registered Agent, can simplify this process for you.
- Peace of mind: Services handle all necessary paperwork and filings, so you don’t have to worry about missing documents or deadlines, ensuring your LLC stays compliant with state laws.
- Privacy protection: Many services offer options to keep your personal information private, providing anonymity for your business.
- Expert support: Access to LLC formation experts and attorneys who can answer questions and guide you through the process, giving you confidence with expert help.
If you choose not to use a service, be prepared for headaches about paperwork. You’ll need to ensure everything is filed correctly to avoid delays.
Frequently Asked Questions
How much does it cost to set up an LLC in South Carolina?
Setting up an LLC in South Carolina costs $110 for the Articles of Organization filing fee. This fee is paid only once when you initially form your LLC.
How much does it cost to dissolve an LLC in South Carolina?
Dissolving an LLC in South Carolina requires filing the Articles of Dissolution document. The filing fee for this document is $10, which you must pay to officially close the LLC.
How long does it take for LLC approval in South Carolina?
The time it takes to form an LLC in SC varies by filing method. Online filings take 1-2 business days, while mail filings take 2-4 weeks.
How do I set up an LLC in South Carolina?
To set up an LLC in South Carolina, you must file the Articles of Organization with the Secretary of State. Include essential details like the LLC’s name, address, and the registered agent’s information.
What are the benefits of an LLC in South Carolina?
An LLC provides liability protection for its owners, known as members, limiting personal responsibility for business debts. It also allows for flexible management and pass-through taxation, which can reduce your overall tax burden.
Is South Carolina a good state to form an LLC?
South Carolina can be a good state to form an LLC due to its business-friendly environment. It offers various incentives and lower taxes compared to many other states, benefiting entrepreneurs.
Do I need a business license for an LLC in South Carolina?
Yes, you may need a business license depending on your specific business activities and local regulations. Check with your city or county for any required licenses or permits.
How much does it cost to reinstate an LLC in South Carolina?
To reinstate a dissolved LLC in South Carolina, you will need to pay a $25 reinstatement fee. Make sure to also resolve any outstanding fees or non-compliance issues to restore your LLC.
Do I need to hire an attorney to form an LLC in South Carolina?
You do not need to hire an attorney to form an LLC; the process can be completed by yourself. However, consulting a lawyer might help clarify complex issues or ensure compliance with all legal requirements.
Should I hire an LLC formation service in South Carolina?
Hiring an LLC formation service can save you time and reduce errors in the filing process. These services often handle paperwork and offer additional features like registered agent services for a fee.
Are there penalties for paying my fees late in South Carolina?
Yes, late payment of LLC fees in South Carolina can result in penalties. You may face additional fees and potential delays in processing your filings.
What happens if I do not file my South Carolina LLC annual report?
Failing to file your South Carolina annual report can lead to penalties and eventually result in your LLC being administratively dissolved. Filing on time is essential to maintain your LLC’s good standing.
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