Last updated September 30, 2020
South Carolina LLC Annual Report
Quick Start Guide:
How to form an LLC in South Carolina
Detailed Lessons:
5. EIN Number
6. No Annual Report ← you are here
7. Business License
8. Taxes
South Carolina LLC costs:
LLC formation: $125 online or $110 by mail
Annual report: None (for most LLCs)
Need help?
Hire a company to form your South Carolina LLC:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)
★ Check out Northwest vs LegalZoom
Annual Report for South Carolina LLCs
Note: Most South Carolina LLCs do not have to file an Annual Report.
For the majority of people (with LLCs taxed as Sole Proprietorships or Partnerships), there is no action needed here.
However, if your LLC is taxed as a C-Corp or your LLC is taxed as an S-Corp, then you must first file Form CL-1, the “Initial Report of Corporations”. The fee is $25 (made payable to the “Secretary of State”) and Form CL-1 must be filed within 60 days of your LLC being formed.
After filing Form CL-1, LLCs taxed as C-Corporations and LLCs taxed as S-Corporations, then must file Form SC 1120 or Form SC 1120S on an annual basis with the South Carolina Department of Revenue. They are due by the 15th day of the third month after the close of the taxable year, which for most businesses will be March 15th.
You will need a South Carolina State Tax ID Number before filing Form SC 1120 or SC 1120S. You can register online with the South Carolina Department of Revenue.
• South Carolina LLCs taxed as C-Corps can find instructions and more information here.
• South Carolina LLCs taxed as S-Corps can find instructions and more information here.
If you have any questions about the above, you can contact the South Carolina Department of Revenue at 803-898-5000, or hire a local accountant. If you need help finding an accountant, please see our recommendation here.
Not sure how your LLC is taxed?
By default:
– Single-Member LLCs are taxed by the IRS like a Sole Proprietorship.
– Multi-Member LLCs are taxed by the IRS like a Partnership.
Electing C-Corp or S-Corp taxation with the IRS has certain advantages (or disadvantages) depending on your situation. Please have a conversation with your accountant to see if either of these make sense for your LLC.
The LLC taxed as an S-Corporation is a common setup for those who want to save money on self-employment taxes, but most accountants will need your net income (income after expenses) to be around $65,000 to $75,000 per year. Having said that, different tax professionals have different opinions on when (if ever) it makes sense to have your LLC taxed as an S-Corp. Please make sure to speak with them before filing any forms with the IRS.
Next Step
References
I just received an EIN for a sole proprietor for my small company. Since doing that, the family has decided to form an LLC since the company is becoming more successful. How do I go about cancelling the first EIN and applying for a new EIN for the LLC?
You have an awesome website!
Thanks for your help,
Judy Danford
Hey Judy, thanks for the great compliment! You can follow these instructions to cancel your EIN. Then you’ll form the LLC and wait for the LLC to be approved. Once the LLC is approved, then get a new EIN for your LLC. Instructions for forming your South Carolina LLC and getting an EIN are on our website. Also, you don’t have to wait for the first Sole Proprietor EIN to be cancelled before forming the LLC and getting the new EIN. Hope that helps!
How often and when do I have to renew my LLC in South Carolina with the Secretary of state?
Mine was formed in 02/07/2020
Hi Beltran, there is no Annual Report (“renewal”) for South Carolina LLCs. The exception to that is if the LLC is taxed as an S-Corporation or if the LLC is taxed as a C-Corporation. Hope that helps.