South Carolina LLC Taxes
Quick Start Guide:
How to form an LLC in South Carolina
South Carolina LLC costs:
LLC formation: $125 online or $110 by mail
Annual report: None (for most LLCs)
(check out Northwest vs LegalZoom)
Note: Our tax lesson is not as robust as our LLC formation lessons, due to the uniqueness and variation among businesses. Taxes are usually not as straightforward as forming an LLC, and therefore, the information below is an overview, and not a step-by-step comprehensive guide.
You will likely need to consult with a local tax professional to make sure you meet all your South Carolina tax obligations. We recommend using Thumbtack.
South Carolina State Tax ID Number
After your LLC is approved, you can obtain a South Carolina State Tax ID Number with the Department of Revenue.
The website to register through is MyDORWAY: https://mydorway.dor.sc.gov/_/
Business Personal Property Tax
• A Business Personal Property Tax return is required to be filed by anyone who has personal property in a business or leases equipment to a business.
• The Business Personal Property Tax is a tax on the furniture, fixtures and equipment that are owned and used to operate a business. Inventory, land and buildings should not be included.
• Business Personal Property Tax is assessed at 10.5%.
• It is due each year within 4 months following the end of your business accounting period (so April 30th if year-end is December 31).
• The State will send an assessment to the County where your business is registered.
• The County then sends a bill for the taxes due to the business after September 1st.
• Payment must be made to the County Treasurer no later than January 15th of the following year.
When is it due?
The reporting of Business Personal Property Tax is due 4 months after the taxpayer’s accounting closing period. As an example, a taxpayer that has a calendar year closing period of December 31st will be required to file a timely return by April 30th.
You should receive a bill from the County Treasurer after September 1st with payment due on or before the following January 15th of each year. Payment for Business Personal Property Tax should be remitted to the County Treasurer. Do not send payment for Business Personal Property Tax to Department of Revenue.
Consequences for failing to pay?
If you fail to file your Business Personal Property Tax, an estimated value will be assessed and sent to the county auditor with a 10% late file penalty. The estimated value will be based on the prior year’s return. If you fall delinquent with the Department of Revenue, the Secretary of State has the authority to shut down your LLC.
What other taxes/forms are due?
Depending on your industry, which county your business is located in, how you are taxed by the IRS, and whether or not you have employees, will determine which additional taxes and forms are due.
Some examples of other taxes and forms due are:
- Form SC1040 for Single-Member LLCs
- Form SC1065 for Multi-Member LLCs
- Form SC1120S for LLCs taxed as S-Corps
- Withholding tax
- Sales and use tax
- Rental surcharge
- Casual or use excise tax
- Employer taxes
- And potentially more
Calculating your tax obligations in South Carolina can be complicated and if done improperly can negatively impact your LLC.
Hiring a tax professional will not only help you keep your South Carolina LLC in compliance, but it will also give you an advisor to go to for other business questions.
You’ll want someone who’s a good fit for your company, makes you feel comfortable, and is willing to answer all of your questions. It should be someone you like personally as well as professionally. We recommend talking with at least 2-3 people before making your final decision.