Forming an South Carolina LLC

(2025 Guide)

2025 LLC Guide

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How to Start an LLC in South Carolina (Step-by-Step Guide)

Discover how to start an LLC in South Carolina, our step-by-step guide. Learn the essential requirements and process to form your business today.

To establish an LLC in South Carolina, you must submit the Articles of Organization to the South Carolina Secretary of State. The filing fee is $125, and approval is typically granted within 2 days.

There are 5 steps you should follow:

Choose an LLC Name
Select a Registered Agent
File Articles of Organization
Create an Operating Agreement
Obtain an EIN

If you prefer to handle the LLC formation on your own, refer to our free guide below. Alternatively, if you wish to have assistance, we suggest hiring Northwest Registered Agent.

Need to save time?

Form your LLC with Northwest ($39 + state fee) or LegalZoom ($149 + state fee).

(See why Northwest is #1: Northwest vs LegalZoom.)

What is the cost to establish an LLC in South Carolina?

Establishing an LLC in South Carolina requires a $125 fee. This fee is for filing the Articles of Organization, the necessary document to form an LLC. For more details on LLC costs, refer to LLC Costs in South Carolina.

How quickly can you form an LLC in South Carolina?

Filing by mail will result in approval within 3-4 business days, not including mail time. Online filing, however, results in approval within 1-2 business days. We recommend online filing due to its simplicity and faster approval. If you prefer a $15 savings and don’t mind a longer processing time, mailing your documents is an option. For potential delays, see How long does it take to get an LLC in South Carolina.

Here’s how to establish an LLC in South Carolina

1. Conduct an LLC Name Search

Begin by checking the availability of your desired LLC name within the state.

This step is crucial because no two businesses in the state can share the same name. First, search for your business name and compare it with current businesses in South Carolina. Utilize the state’s Business Name Search to ensure the uniqueness of your desired LLC name.

Second, get acquainted with the state’s naming regulations to ensure your South Carolina LLC is approved. We’ll delve into both aspects further here: South Carolina LLC Name.

Note: 

Most people choose “LLC”.

2. Select a South Carolina Registered Agent

The following step involves selecting a Registered Agent. A South Carolina Registered Agent is an individual or company responsible for receiving legal mail and state notices on behalf of your South Carolina Limited Liability Company.

Who is eligible to be an LLC Registered Agent? You have three options for appointing a Registered Agent:

You
A friend or family member
A Registered Agent Service

South Carolina mandates that LLC Registered Agents must maintain a physical street address within the state. PO Boxes are not permissible. The name and address of the Registered Agent will be included in public records.

If you lack an address in South Carolina or desire increased privacy, you can opt for a Registered Agent Service for your LLC.

We suggest Northwest Registered Agent

One of the aspects we appreciate most about Northwest is their willingness to allow you to use their office address for your LLC filing. This ensures your personal address is not listed in public records.

Additionally, they provide a service to scan any mail addressed to your LLC and upload it to your online account. Northwest offers exceptional customer service, and we trust them as our own Registered Agent.

Special offer: 

Form your LLC with Northwest for $39 + state fee and get a free year of Registered Agent service.

(Read our Northwest Registered Agent review.)

3. Submit Articles of Organization

To establish an LLC in South Carolina, you must submit the Articles of Organization. This document, when filed with the South Carolina Secretary of State, formally establishes your LLC.

The cost for filing the South Carolina Articles of Organization is $125 if you choose to file online. This is a one-time fee necessary for creating your LLC.

If you prefer to handle the filing yourself, refer to our detailed guide: South Carolina Articles of Organization. Alternatively, you can hire a service to manage this for you.

Need to save time? 

Form your LLC with Northwest ($39 + state fee) or LegalZoom ($149 + state fee).

(See why Northwest is #1: Northwest vs LegalZoom.)

4. Draft an LLC Operating Agreement

An LLC Operating Agreement acts as a complementary document to the Certificate of Formation. While the Certificate of Formation establishes your LLC, the Operating Agreement identifies the owners of the LLC.

Moreover, many banks require an Operating Agreement when setting up an LLC bank account. It is also invaluable if legal issues arise, as it demonstrates the proper management of your LLC. For these reasons, we advise all LLCs, including Single-Member LLCs, to have an Operating Agreement.

Additionally, an Operating Agreement is considered an “internal document.” This means you don’t need to file it with the state or the IRS (Internal Revenue Service). Simply keep a copy with your business records. You can download a free template below. Then, watch our South Carolina Operating Agreement video for a step-by-step guide on how to complete it.

Download a free LLC Operating Agreement:

Member-managed: Google Doc | Word | PDF
Manager-managed: Google Doc | Word

(What’s better? See Member-managed vs Manager-managed LLC)

5. Obtain an EIN for Your LLC

The following step is to secure a South Carolina EIN from the IRS for your LLC. Note: An EIN, also known as a Federal Tax ID Number or Federal Employer Identification Number, is essential.

An EIN is needed to:
– Identify your LLC for tax purposes
– Open a business bank account
– Apply for business licenses and permits

How much does an EIN cost? The IRS provides an EIN at no charge.

How long does it take to receive an EIN? Online applications are processed in 15 minutes, while mail or fax applications may take 1-3 months.

How can I obtain an EIN?
– US Citizens/Residents: With an SSN or ITIN, apply online. Follow these instructions: Apply for an EIN online.
– Non-US Residents: You can’t apply online, but you can obtain an EIN via fax or mail. See these instructions: How to get an EIN without an SSN or ITIN.

What should I do after my LLC is approved?

 After your LLC receives approval, there are a few more steps to consider.

Open an LLC business bank account


Setting up a business bank account for your LLC is essential. It simplifies accounting and record-keeping for your business finances. Additionally, a separate business bank account helps preserve your personal liability protection by keeping your business finances distinct from your personal ones.

Get business licenses and permits


The good news is that South Carolina doesn’t require a state-wide general business license. However, depending on your LLC’s location, you might need a local business license or permit. For instance, if you plan to start a daycare, you may need a license from your city or county. More details can be found on our South Carolina Business License page.

File and pay taxes


LLCs themselves don’t pay federal income tax. Instead, the LLC members are responsible for taxes through their personal tax returns. In simpler terms, the owners report LLC taxes on their personal returns. How will your LLC be taxed? By default, the IRS taxes an LLC based on its ownership: A Single-Member LLC is taxed like a Sole Proprietorship, while a Multi-Member LLC is taxed like a Partnership. Alternatively, you can request the IRS to tax your LLC as a C-Corporation or S-Corporation. Apart from federal taxes, be aware of state and local income taxes, as well as sales tax. You can find more information in South Carolina LLC Taxes.

Helpful Resources

South Carolina Secretary of State (Division of Business Filings)

Website
Phone: 803-734-2158
Hours: 8am to 5pm, Monday through Friday

How to Start an LLC in South Carolina FAQs

Can I start an LLC online in South Carolina?

Yes, you can set up your LLC online in South Carolina. The fee for filing the Articles of Organization is $125. Once you submit your application online, it typically gets approved within 1-2 business days.

One major benefit of an LLC is the protection of personal assets. This means if your business faces a lawsuit, personal assets like your home, vehicles, and bank accounts remain protected. This shield is available to all LLC owners, known as LLC Members, regardless of whether it’s a Single-Member LLC or a Multi-Member LLC. This level of protection isn’t available with a Sole Proprietorship or Partnership, where owners are directly exposed to business liabilities. This makes Limited Liability Companies (LLCs) much more popular. Another advantage is LLC pass-through taxation, where the LLC itself doesn’t pay federal income taxes. Instead, profits pass through to LLC Members, who then report them on their personal tax returns. South Carolina’s state income taxes are aligned with this federal tax treatment, so your business income is taxed similarly at the state level. For more details, see How are LLCs taxed.

Whether South Carolina is a suitable place to start an LLC depends on your location and where you conduct business. If you live or do business in South Carolina, it makes sense to start your LLC there. Although some sources highlight tax benefits in certain states, those benefits are irrelevant if it’s not where you live and operate. For instance, forming an LLC in Delaware while living and doing business in South Carolina would require registering the Delaware LLC in South Carolina and incurring additional costs and taxes. Thus, if you’re based and conducting business in South Carolina, it’s a good choice for starting a business. However, if you’re purchasing real estate outside South Carolina, consider forming your LLC in the property’s state. For further information, see Best State to Form an LLC.

Most LLCs in South Carolina are exempt from filing an Annual Report or paying an annual fee. However, if your LLC is taxed as a Corporation, you will need to submit an Annual Report. This choice is uncommon and only occurs if you request it by filing a specific form with the IRS. For more details, refer to South Carolina LLC Annual Report.

The key differences between Domestic LLCs, Foreign LLCs, and Professional LLCs (PLLCs) lie in their formation location and business purpose. A Domestic Limited Liability Company is created in the business owner’s home state, where they live and conduct business. So, if you reside and operate in South Carolina, you’d form your Domestic LLC there. A Foreign Limited Liability Company is an LLC formed outside its home state. Here, “foreign” signifies the LLC’s formation outside its primary state. For instance, if you expand your South Carolina-based business into Georgia, you’d register your existing South Carolina LLC as a Foreign LLC in Georgia. LLCs are state-level entities, so to operate in multiple states, you must form or register an LLC in each state, creating a Domestic LLC in your home state and a Foreign LLC elsewhere.

A Professional Limited Liability Company (PLLC) is an LLC designed for offering “professional services” that require specific permissions like licenses, registrations, or certifications from the state to operate legally. Professions such as architects, attorneys, social work counselors, doctors, and veterinarians often use PLLCs. You can learn more about PLLCs, their availability, and their specific requirements in What’s a Professional LLC? For more information on Foreign and Domestic LLCs, see: Foreign LLCs by State and Difference between Domestic LLCs and Foreign LLCs.

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