All states › South Carolina
Every step to open an LLC in South Carolina and get ready to hire, in order, with the official state page for each one. Agencies you'll deal with: Secretary of State · Department of Revenue (SCDOR) · Department of Employment and Workforce (DEW) · Workers' Compensation Commission · Department of Labor, Licensing and Regulation (LLR) · Department of Social Services (new hire).
This is the most common path: a new LLC, general business, paying W-2 employees and 1099 contractors. Adding a location, forming a corporation, or in a licensed industry? Customize it and check off steps as you go.
Customize this checklistPopular South Carolina business types:
Do this first. The state tax and payroll accounts ask for your registration details.
Apply free on the IRS website and get the number immediately. You'll need it for the state tax registration, a business bank account, and payroll. Opening a new location? You already have one; the same EIN works in every state.
This internal document sets out who owns what, how decisions get made, and what happens if an owner leaves. It isn't filed with the state, but banks often ask for it, and it helps protect your liability shield. Single-owner LLCs need one too.
Bring your EIN letter, filed formation documents, and operating agreement or bylaws. Keeping business and personal money separate is one of the main things that protects your personal assets.
Many businesses need a license or permit before opening, separate from registering the company. Check three levels: the state licensing board for your field, your city or county, and any federal agency that regulates your industry.
If you want S corp taxation, file IRS Form 2553. The deadline is tight: generally within 2 months and 15 days after the start of the tax year you want it to apply. See Business basics for when it makes sense.
File Articles of Organization (or the state's equivalent) online through SC Secretary of State Business Filings online.
You need a registered agent with a street address in South Carolina to receive legal papers and state notices. Use a registered agent service if you have no one local.
No state DBA registration. Check city or county licensing.
Corporations file the CL-1 (Initial Annual Report of Corporations) with their articles; the articles form includes a certification by a South Carolina attorney.
New corporations submit the CL-1 initial annual report with their articles. The $25 CL-1 fee is included in the $135 filing fee.
Apply for a withholding account and retail (sales tax) license through the MyDORWAY Business Tax Application. Withholding registration is free. Any business with an employee working in SC needs a withholding account.
Many cities and counties require their own business license. No local income taxes.
H. 4216 lowered the top individual rate from 6% to 5.21%, retroactive to January 1, 2026. Under SCDOR guidance, income under $30,000 is taxed at 1.99%. Watch for updated withholding tables.
Applies if you sell products, or services this state taxes. Most medical care is exempt. See Business basics for sales tax.
South Carolina calls it a Retail License. Register with the South Carolina Department of Revenue (SCDOR) through MyDORWAY (Business Tax Application) before you make your first taxable sale in South Carolina. You'll collect tax from customers and send it to the state.
Give your supplier Form ST-8A, Resale Certificate so you don't pay tax on inventory you'll resell. The buyer gives its 9-digit SC retail license number (or another state's resale number); the certificate stays valid until revoked in writing. Keep certificates your own customers give you, too.
Out-of-state sellers must register once sales into South Carolina pass $100,000 (previous or current calendar year), even with no office here.
Each business location needs its own retail license, and a license must be surrendered after 24 straight months with no sales.
Applies once you pay W-2 employees who work in this state.
Form I-9 is never mailed to the government. You keep it in your own files and show it only if ICE or the Department of Labor asks for an inspection.
Federal posters (minimum wage, EEO, FMLA if you have 50+ employees, and others) go alongside the state ones.
Register once you pay wages to employees working in South Carolina. Reports and payments are usually quarterly.
Required at 4 or more employees (full- or part-time, family members count). Exempt: employers with annual payroll under $3,000, agricultural employees, certain commission-paid real estate agents, railroads, and casual employees. Buy coverage from an SC-licensed insurer.
Report within 20 days after the employee's first day of work to the SC Department of Social Services (newhire.sc.gov).
All private employers, regardless of size, must verify every new hire through E-Verify within 3 business days, along with Form I-9 (since January 1, 2012). LLR enforces it; violations can lead to probation and suspension or revocation of your right to employ.
South Carolina's wage payment rules:
$7.25 (federal; no state minimum wage law) an hour.
No paid sick leave law for private employers.
No state retirement savings mandate.
South Carolina doesn't require harassment training for private employers. A written policy and a yearly refresher are still best practice.
Display the state's required labor law posters where employees can see them, along with the federal posters. Workers' comp notices come from your carrier.
South Carolina requires every private employer, regardless of size, to verify new hires through E-Verify within 3 business days of hire.
With 5 or more employees, tell employees in writing (or post) their normal hours, pay rate, paydays, and deductions. Give 7 days' written notice before changes, and an itemized pay statement each pay period.
The W-9 gives you the contractor's legal name and tax ID for their 1099. Check the classification first: if you control how and when they work, they may legally be an employee.
File with the IRS and send the contractor a copy by January 31. For payments made in 2026 and later, the reporting threshold is $2,000 per contractor per year (it was $600 before).
Recurring deadlines. Put these on your calendar now.
FinCEN's final rule, effective August 14, 2026, permanently exempts companies formed in the U.S. from beneficial ownership reporting. Ignore letters or emails demanding a BOI filing fee; they're a common scam. Only companies formed outside the U.S. still file.
Keeps your business in good standing with the state. Missing it can lead to penalties or dissolution.
Corporations pay an annual license fee to SCDOR with the annual report.
File unemployment wage reports each quarter and state withholding returns on the schedule you're assigned (if the state has income tax), plus the annual W-2 reconciliation.
Returns are due by the 20th of the month after the period; most file monthly, and quarterly or annual filing needs SCDOR approval. File a zero return if you had no sales; skipping it can bring penalties.
Recurring dates for South Carolina and federal filings. A payroll service handles most payroll lines, but you should know they're happening.
| When | What | Filed with |
|---|---|---|
| Apr 15 | Calendar-year corporate income tax return with annual report and license fee | South Carolina |
| Apr 30, Jul 31, Oct 31, Jan 31 | Quarterly SC withholding return and DEW UI wage report | South Carolina |
| Jan 31 | Annual withholding reconciliation with W-2s | South Carolina |
| Assigned schedule | Sales tax return (file a zero return if no sales) | South Carolina |
| Jan 31 | W-2s to employees and SSA (with W-3); Form 940; 4th-quarter Form 941 | IRS / SSA |
| Jan 31 | 1099-NEC to contractors and IRS | IRS |
| 15th monthly | Federal payroll tax deposit (monthly depositors) | IRS |
| Apr 30 · Jul 31 · Oct 31 | Form 941 for the quarter | IRS |
| Jul 31 | Form 5500 or 5500-SF, if you sponsor a 401(k) (Oct 15 with Form 5558 extension) | DOL (EFAST2) |
Last verified: October 27, 2026
The South Carolina state filing fee for an LLC is $110 (online filing adds a $15 service fee). That's the fee to form your LLC with the state. Expect other costs too, such as a registered agent service if you use one, licenses, and annual filings. See the checklist above for each step.
You need to register to collect sales tax in South Carolina if you sell taxable products or services there. The state rate is 6%, and local taxes may add to it. Registration cost: $50 per location.
Out-of-state sellers must register once their sales into South Carolina pass $100,000 a year. Having an employee or office in South Carolina also creates nexus right away.
Recurring filings include: file the Corporate annual report (filed with the SCDOR corporate income tax return); none for most LLCs; file quarterly unemployment reports and withholding returns; file sales tax returns on time. The deadline calendar above lists the dates.
This guide organizes official requirements. It isn't legal or tax advice. Fees, forms, and deadlines change, so confirm on each linked state page before you file, and talk to an attorney or CPA about your specific situation.
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