LLC Cost in South Carolina – How Much to Pay for an LLC

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Perhaps you are hoping to form an LLC in SC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in South Carolina.

South Carolina LLC Cost of Filing

Here are the costs involved in forming an LLC in South Carolina.

Cost of Filing Formation Certificates

The South Carolina Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the South Carolina Secretary of State

South Carolina Domestic LLC

  • Online Filing costs $110.
  • Annual Report not required
  • Name Reservation fee costs $25
  • By Mail: Fill out the application form, and send it to South Carolina Secretary of State’s Office, Attn: Corporate Fillings, 1205 Pendleton Street, Suite 525, Columbia, SC 29201.  Costs $110.

South Carolina Foreign LLC

  • Online Filing costs $110.
  • Annual Report not required
  • Name Reservation fee costs $25
  • By Mail: Fill out the application form, and send it to South Carolina Secretary of State’s Office, Attn: Corporate Fillings, 1205 Pendleton Street, Suite 525, Columbia, SC 29201. Costs $110.

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

South Carolina LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in South Carolina, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

LLC Service

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Business Permits and Licenses 

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the South Carolina Department of Revenue for regulatory boards or agencies requiring licensing. 

Taxes Payable to South Carolina Department of Revenue

There are a number of taxes that are to be paid in South Carolina while registering your LLC. The taxes are levied by Federal & State governments.

State Income Tax

The State Income tax is levied on all the earnings you draw from your LLC. The earnings you make shall be taxed through your personal tax return. The standard income tax rate in South Carolina ranges from 3% to 7.9%, calculated on the basis of the earning you make. You can apply for all the standard allowances and deductions.  

State Sales & Use Tax 

Any seller of Tangible goods, Goods like Furniture, cars, electronics, etc., or a  service provider company has to pay the sales & use tax in South Carolina. The current state sales & use tax rate on LLC in South Carolina is 6%

Federal Self-Employment Tax

The Federal Self-employment tax is levied on all the members or managers of the LLC. Similar to State Tax, this Federal Tax has also been calculated basis all the earnings you draw from the Company. The Federal self-employment tax rate in South Carolina is 15.3 percent. 

Federal Income Tax

If you are registering your LLC in South Carolina, you have to pay Income tax even to the Federal Government. This tax is calculated on the basis of your earnings, the income tax bracket your LLC falls, the deductions, & the manner/ mode of filing.

The Federal Income Tax is levied on all the profits your LLC makes after calculating the deductions & allowances such as Healthcare or Retirement Plans.

Employee & Employer Taxes

The Employee & Employer Taxes may vary, depending on various factors, e.g., the amount, number of employees, etc. Every LLC in South Carolina, which has several employees earning a monthly salary, is bound to pay these taxes.

Cost Comparison Between States

The neighboring states of South Carolina are North Carolina & Georgia. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.

StatesFiling FeeAnnual/Biennial FeeSales Tax
South Carolina$110Not Required6%
North Carolina$125$2004.75%
Georgia$100$254%

Based on the kind of industry you LLC operated in, your LLC will be liable to some other taxes & duties. For Example, if your LLC is in the sector of import & export, you have to pay the import-export duty. You should consult with a professional to verify the tax rates or business costs of registering an LLC in South Carolina.

Other Costs

How Much Does It Cost to Maintain an LLC in South Carolina

There are a number of costs associated with maintaining an LLC, including a franchise tax, annual report, and registered agent fees. These fees are based on the type of business, and should be paid on a yearly basis. The cost of an annual report is less than a few dollars, and may be less than $100. This one-time fee should cover all of your accounting needs, and will allow you to focus on growing your business.

In order to register an LLC in South Carolina, you must fill out a form that requires you to provide certain information about yourself and your business. This includes a contact person, the name and address of the registered agent, and other details. You can also list the names of all the members of your LLC. You should check the “term company” box, if you want to maintain your LLC for a certain amount of time. If you plan to continue operating the business, you should check “indefinite” in the “term company” box.

The Secretary of State of South Carolina requires that you open a business bank account. The bank account should be separate from your personal funds, and should not be used for personal expenses. An LLC must have a separate bank account, separating the business from your personal finances. This will help ensure the corporate veil of your LLC. This step may cost you a few hundred dollars, but will be well worth it in the long run.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

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