How to start an LLC in South Carolina in 2024

Brynne Conroy

BLUEPRINT

Updated 6:43 a.m. UTC June 19, 2024

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For some businesses, South Carolina may be an attractive place to set up shop. The state does not require an annual filing for LLCs. In addition, registering your LLC provides your members with limited liability protection without subjecting you to corporate taxes. While members must pay LLC profit taxes on their personal income tax returns, their personal assets cannot be seized if the LLC files for bankruptcy or is the subject of a lawsuit.

In this guide, we show you the steps to start an LLC in South Carolina and many resources to help you through the process.

Here are the seven steps to start an LLC in South Carolina:

Choose a business name.
Select a registered agent.
Submit your LLC articles of organization.
Establish an operating agreement.
Obtain an EIN from the IRS.
Register with state government agencies and programs.
Apply for state and municipal business licenses.

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7 steps to start an LLC in South Carolina

1. Choose a business name

To choose a business name, first review South Carolina’s naming guidelines for the do’s and don’ts of naming your business. In addition, we prepared a business naming guide to help you learn how to select a name that is available and marketable.

Once you’ve landed on a name, ensure it is available to use in South Carolina. You can check name availability using South Carolina’s business name search tool. In addition, run the name through the U.S. Patent and Trademark Office’s search trademark database to ensure the name isn’t nationally protected from infringement.

If your name appears in either of these databases, you must choose another one. You can either brainstorm a new name or slightly change the name to make it different from the existing one. Then, run it through these databases again until you land on a preferred name that is available.

At this point, if you’re not ready to file your articles of organization, it’s best to reserve your chosen name for up to 120 days. You can apply for a name reservation for a $25 fee.

2. Select a registered agent

A registered agent is a person or entity that is available at a set address during all regular business hours to receive (and sign for) legal and tax documents on your LLC’s behalf. Any individual resident or business with a South Carolina street address can serve as a registered agent in South Carolina. It’s a big responsibility, though, and offers little schedule flexibility to the person or entity fulfilling the role.

For more information, read our registered agent guide. It covers registered agent responsibilities and how to best fulfill this role, either in house or through an outsourced option. If you then decide that outsourcing this responsibility is in the best interest of your LLC, check out our best registered agent services list to find the best provider for your needs.

3. Submit your LLC articles of organization

Now that you have a name and registered agent, it’s time to file your articles of organization with the state. Once submitted, this form legally forms your business with the South Carolina Secretary of State. To file, use the South Carolina Secretary of State’s business entities online filing system. Follow the prompts to fill out the form.

You have the option of filing a paper form. It’s a bit cheaper at $110, while filing online costs $125. But, filing online is more convenient and results in faster processing times. If you file online, you should receive your certificate of existence within one to two business days, whereas paper filings take three to four business days to process.

Pro tip: Filling out this form can be a complex process. For help, review our best LLC services list. Many of the providers on this list will fill out and submit this document for you for free.

New LLC reporting requirement alert

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has implemented a new reporting requirement for all non-exempt LLCs starting on January 1, 2024.

The requirement is called the Beneficial Ownership Information (BOI) report and it is estimated to only take about 20 minutes to complete.

Here’s what you need to know:

LLCs formed before January 1, 2024 have until January 1, 2025 to file.

LLCs formed between January 1, 2024 and January 1, 2025 have 90 days to file from the confirmed date of the businesses’ registration.

New LLCs formed after January 1, 2025 will have 30 days to file from the confirmed date of formation.

For all details, FAQs and to file, visit FinCEN’s BOI website.

4. Establish an operating agreement

An operating agreement is a document that outlines the operating and financial procedures of an LLC, in addition to its members’ protections, powers and responsibilities. We strongly recommend all LLCs create an operating agreement even when it’s not required by state law.

Without an operating agreement, your LLC will be subject to any default state LLC operating rules that contradict your LLC’s or its members’ interests. The operating agreement can also further reinforce your members’ limited liability protection and help resolve member disputes that could otherwise lead to the LLC’s dissolution.

Remember that this agreement is most effective when it is customized to your LLC. Some companies offer free operating agreements but they tend to be boilerplate documents. They are often great for the first draft but, ultimately, finalizing a custom one often requires consulting an attorney who is well-versed in South Carolina business law. Rocket Lawyer and LegalZoom have agreement templates but also allow you to pay to work with one of their attorneys to customize the agreement.

5. Obtain an EIN from the IRS

Once you’ve received your LLC’s certificate of existence, you can and should apply for an employer identification number (EIN) from the IRS. This application is free. You can apply for your EIN online. The entire process takes about 15 minutes to complete, and your EIN will be issued on a confirmation page immediately after you fill out the application.

An EIN is important for completing many business tasks. In our EIN guide, we outline how to fill out the application and how you can put the EIN to work for your LLC.

6. Register with state government agencies and programs

Not all South Carolina LLCs are required to have a state tax ID, but many will need to register with the Department of Revenue using the MyDORWAY portal. For example, you’ll need to register your LLC if it:

Has employees.
Is required to collect sales or use tax.
Is required to file business personal property taxes.

Business personal property taxes are charged on any assets your business owns. Examples of taxable items include desks, computers, copiers, shelves and manufacturing equipment. Some counties manage this tax independently but others outsource it to the state Department of Revenue.

If you have employees, you must also register with the state’s agencies and programs:

South Carolina Department of Employment and Workforce: To obtain unemployment insurance.
South Carolina Department of Social Services: To report new hires.
South Carolina new hire reporting program: To e-verify new hires.
South Carolina Workers Compensation Commission: To obtain workers’ compensation insurance.

7. Apply for state and municipal business licenses

While there is no general business license requirement at either the state or county level in South Carolina, you still likely need to pursue licensing at the state, county or municipality levels based on your industry, location and business activities.

For example, “employment agencies are required to obtain a license through the Secretary of State’s Office,” says the South Carolina Secretary of State Office. “For other types of business entities, you may want to contact the South Carolina Department of Revenue, the South Carolina Department of Labor, Licensing and Regulation and the South Carolina Department of Consumer Affairs.”

Beyond state-level requirements, counties in South Carolina issue their own licenses depending on the business’s industry. You’ll have to get in touch with your county contact to ensure you’re meeting these requirements. Similarly, reach out to your local city contact to ensure you’re meeting municipal business licensing requirements.

Featured LLC service offers

ZenBusiness

Learn More

Via ZenBusiness’ website

Free version available

Yes

Lowest published package price

$199

Live chat

Yes: Human

LegalZoom

Learn More

Via LegalZoom’s website

Free version available

Yes

Lowest published package price

$249

Live chat

Yes

Northwest Registered Agent

Learn More

Via Northwest’s website

Free version available

Lowest published package price

$39

Live chat

Yes

Find an LLC services in South Carolina: Best LLC services of 2024

Frequently asked questions (FAQs)

No, you cannot set up an LLC for free in South Carolina. The filing fee for LLC articles of organization range from $110 to $125, depending on how you file. The best LLC services offer free filing assistance but you still must pay the state filing fee. In addition, other costs may apply, including name reservation, registered agent and business licensing costs.

LLCs in South Carolina are treated as pass-through entities. Members pay income taxes on their share of profits on their personal income tax returns. The exception is if you elect to be taxed as an S corporation. In this case, you are responsible for a portion of each shareholders’ Social Security and Medicare taxes. In addition, for an LLC, depending on your company’s activities, you may be charged property and employment taxes.

Yes, you must have a registered agent in South Carolina. While you can fulfill this role yourself as a South Carolina resident with a valid street address, it’s often easier to outsource the job to a registered agent service.

No, South Carolina LLCs do not need to file an annual report. However, there are other annual requirements for many LLCs to stay in good standing with the state, such as filing your business personal property taxes if required.

To dissolve your LLC in South Carolina, first follow the dissolution instructions in your operating agreement. Then, file articles of termination. The filing fee is $10. In addition, don’t forget to close your MyDORWAY account and other government agency accounts.

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

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Brynne Conroy

BLUEPRINT

Brynne Conroy has over 12 years of experience writing about money, with a particular focus on women's finances and small business lending and credit products. Her debut book was an Amazon #1 New Release across multiple categories, and she has been awarded a PEN America grant for the body of her work in the field. Find her bylines on LendingTree, Her Agenda, GoBankingRates, and Business Insider, and features on MSN Money, Jean Chatzky's HerMoney, and Yahoo Finance.

Alana Rudder

BLUEPRINT

Alana is the deputy editor for USA Today Blueprint's small business team. She has served as a technology and marketing SME for countless businesses, from startups to leading tech firms — including Adobe and Workfusion. She has zealously shared her expertise with small businesses — including via Forbes Advisor and Fit Small Business — to help them compete for market share. She covers technologies pertaining to payroll and payment processing, online security, customer relationship management, accounting, human resources, marketing, project management, resource planning, customer data management and how small businesses can use process automation, AI and ML to more easily meet their goals. Alana has an MBA from Excelsior University.