How To Start a South Carolina LLC in 11 Steps (2026)

To form a South Carolina LLC, file articles of organization with the South Carolina secretary of state and pay the $110 filing fee.

Why start an LLC in South Carolina? Area Development ranked the state second in its 2025 Top States for Business report. It has also placed in the top four throughout the ranking’s 18-year history.

South Carolina also offers tax incentives that reduce eligible companies’ income or property tax costs. Plus, most LLCs also have no annual reporting requirement, although those taxed as corporations are subject to separate reporting rules.

Use this guide to learn how to start an LLC in South Carolina, specifically.

What is an LLC?

A limited liability company (LLC) is a business structure created under state law. Its owners are called members. An LLC can have one or more members. A one-owner company is a single-member LLC, while one with two or more owners is a multimember LLC.

The LLC structure protects members from personal liability in most cases. Creditors and claimants generally pursue the company’s assets to satisfy business debts or in lawsuits. Personal guarantees and a member’s conduct can affect that protection under state law.

Federal tax treatment depends on the number of members and the LLC’s tax election. The IRS treats a single-member LLC as part of its owner’s return and a multimember LLC as a partnership by default. Under these classifications, business income passes through to the owners’ tax returns.

Is an LLC right for you?

Your liability risk, tax needs, and fundraising plans can help determine whether an LLC or another structure is right for your business. An LLC may be a good fit if:

• You want personal liability protection. LLC members generally receive protection for their personal assets when the company owes money or faces a lawsuit. Signing a personal guarantee can create personal liability.
• You want flexible federal tax treatment. The IRS treats single-member LLCs as part of the owner’s return and multimember LLCs as partnerships by default. An LLC can also elect to be taxed as a C corporation or an S corporation.
• You plan to raise money through membership interests or loans. LLC ownership is divided into membership interests instead of corporate shares. A C corporation may be a better fit for businesses that plan to raise money by issuing stock.

How to start an LLC in South Carolina

Follow these 11 steps to form your South Carolina LLC and complete its business requirements:

1. Name your South Carolina LLC
2. Create a business plan
3. Choose a registered agent in South Carolina
4. File your South Carolina articles of organization
5. Get a federal employer identification number (EIN)
6. Obtain business licenses and permits
7. Understand South Carolina state tax requirements
8. Prepare an LLC operating agreement
9. Examine business insurance options in South Carolina
10. Understand financial considerations
11. Market your LLC

1. Name your South Carolina LLC

Choose a legal name that meets two South Carolina requirements:

• It’s distinguishable. Your name has to differ from business names recorded or reserved with the South Carolina secretary of state.
• It has an LLC designation. The name must contain “limited liability company” or “limited company.” Approved abbreviations include “L.L.C.,” “LLC,” “L.C.,” and “LC.” South Carolina also allows “Ltd.” for “limited” and “Co.” for “company.”

How to search South Carolina business entities

Use the Secretary of State’s Business Name Search before filing:

1. Enter your full proposed name.
2. Review the results. The tool returns entity names containing your search terms.
3. Open similar results to view their official business profiles.
4. Repeat the search using the main words in your name and common spelling variations.

Name availability is the leading reason South Carolina business filings are rejected.

Applicants who need more time can file an Application to Reserve a Limited Liability Company Name. Complete and sign two copies. Mail them with a self-addressed stamped envelope and the $25 filing fee. The reservation holds the name for 120 days. Name reservation is optional if you’re ready to file the articles of organization (more on this process below).

If you plan to do business under a different name (known as a DBA) or use a trade-name, these filings fall outside the South Carolina secretary of state’s registration system. Check your county and municipal licensing requirements before using a DBA.

2. Create a business plan

A business plan explains what your LLC will sell and who it will serve. Add a market analysis and ownership plan. Include your launch budget, pricing, sales projections, and marketing approach.

3. Choose a registered agent in South Carolina

Every South Carolina LLC must continuously maintain an agent for service of process, and the agent’s street address must be located in the state. The agent receives government notices and other legal documents for the LLC.

Two options are:

• Act as your own registered agent. A member who lives in South Carolina can use their name and street address. You receive documents directly and avoid a service fee. Your name and address become part of the state filing.
• Hire a commercial registered agent service. The service provides an eligible agent and a South Carolina street address. They receive legal documents and forward them to the LLC for a recurring fee. An authorized service can serve owners who live outside of South Carolina.

4. File your South Carolina articles of organization

File your articles of organization through the secretary of state’s online filing portal or submit the paper application. The filing fee is $110.

A paper filing requires two completed copies and a self-addressed stamped envelope. Mail the documents and payment to:

South Carolina Secretary of State
Attn: Corporate Filings
1205 Pendleton St., Suite 525
Columbia, SC 29201

The articles of organization require:

• The LLC’s legal name and initial designated office address
• The registered agent’s name, signature, and South Carolina street address
• Each organizer’s name, address, and signature
• The company’s fixed term, if applicable
• The management choice and each initial manager’s information for a manager-managed LLC
• Any provision making specific members liable for company obligations
• An optional delayed effective date of up to 90 days after filing

South Carolina treats an LLC as member-managed unless its articles provide for manager-managed governance:

• Member-managed LLC: Each member has equal management rights by default. A majority of members can decide most day-to-day business issues.
• Manager-managed LLC: One or more named managers handle day-to-day decisions and can act for the company. Members appoint or remove managers and retain approval rights over certain major decisions.

An LLC formed outside South Carolina that plans to transact business in the state must file an Application for a Certificate of Authority to Transact Business. Include an original certificate of existence issued within the previous 30 days. The filing fee is $110.

5. Get a federal employer identification number (EIN)

An EIN is a federal tax identification number for your LLC. Complete the South Carolina formation filing first. Then apply directly through the IRS. The application is free.

Keep the IRS confirmation notice with your business records. Shopify Payments asks private single-member and multimember LLCs in the United States to provide their IRS-registered name and EIN during setup. Enter both exactly as they appear on IRS documents.

6. Obtain business licenses and permits

South Carolina uses local business licenses, so your city, county, or both may require one. Check the requirements for every location where your LLC conducts business.

A business that sells tangible personal property or taxable services in South Carolina must obtain a Retail License before making taxable retail sales. This rule covers online sales, as well.

The license costs $50 per location and remains valid while the same taxpayer operates at that location. Apply through the Business Tax Application on MyDORWAY.

Your industry may also require state permits or professional licenses. Use South Carolina Business One Stop to identify local requirements.

7. Understand South Carolina state tax requirements

Your LLC’s tax treatment depends on its ownership and tax elections. Under IRS default rules, a single-member LLC is part of its owner’s tax return. A multimember LLC is taxed as a partnership. Profits and losses generally pass through to the members in both cases.

An LLC can elect C corporation treatment using IRS Form 8832 or S corporation treatment using Form 2553. C corporations pay income tax at the company level, whereas S corporation income usually passes through to the owners.

South Carolina generally follows the federal classification for business taxation. An LLC taxed as a corporation must file an annual South Carolina corporate return—C corporations use Form SC1120 and S corporations use Form SC1120S. Both returns include an annual report.

If you sell taxable products or services, register the necessary accounts with the South Carolina Department of Revenue. The statewide sales tax rate is 6%. Local taxes can raise the combined rate to 9%, depending on the location and transaction.

Shopify’s US sales tax tools can help identify where your store may have tax liability. After registering with the relevant state authorities, you can configure sales tax collection in Shopify.

Employers must also review withholding and unemployment insurance requirements. A for-profit business generally becomes liable for South Carolina unemployment tax when it pays at least $1,500 in wages during a calendar quarter or employs one person during any 20 weeks in a calendar year. Register and review the full criteria on the South Carolina Department of Employment and Workforce website.

Be sure to consult a qualified tax professional before choosing corporate treatment.

8. Prepare an LLC operating agreement

Although South Carolina does not require it to form an LLC, it can be helpful to create a written operating agreement.

Under the South Carolina Uniform Limited Liability Company Act of 1996, an operating agreement can govern relations among the LLC, its members, and its managers. When the agreement does not address an issue, the default rules in the act apply.

An operating agreement covers:

• Each member’s ownership percentage and initial contribution
• Voting rights and decision-making authority
• Member-managed or manager-managed responsibilities
• Allocation of profits, losses, and distributions
• Procedures for admitting members, transferring interests, or handling a member’s departure
• Buyouts, dissolution, and the LLC’s chosen tax treatment

Have every member approve the agreement and keep a signed copy with the LLC’s records.

9. Examine business insurance options in South Carolina

Choose insurance based on your workforce, property, products, services, and contracts. Potential policies include:

• Workers’ compensation insurance. As a general rule, South Carolina businesses with four or more employees—including part-time employees and family members—must carry coverage for work-related injuries and illnesses. Several exemptions apply.
• General liability insurance. This can cover third-party bodily injury, property damage, and related legal costs. State law does not require it for every LLC, but landlords and clients may require coverage.
• Professional liability insurance. This type of insurance can cover claims involving errors, omissions, or negligence in professional services. It is common among consultants, accountants, medical professionals, and real estate professionals.

Legal disclaimer: Insurance requirements vary by workforce, payroll, industry, and contract. This information is general and does not replace legal or insurance advice. Confirm your obligations with the South Carolina Workers’ Compensation Commission and a licensed insurance professional.

10. Understand financial considerations

Open a dedicated business bank account as your first step. Separating business and personal transactions simplifies bookkeeping and creates clearer financial records.

Account requirements vary, but financial institutions may request your articles of organization, EIN, operating agreement, and identification to set up an account.

Eligible US merchants who use Shopify Payments can also consider Shopify Balance, a financial account that lets store owners manage payments and transactions through Shopify. It has no monthly fee or minimum balance and can create dedicated accounts for expenses such as taxes or payroll.

11. Market your LLC

Build your online presence before promoting the business. Secure a domain name that matches your brand. Use it for a mobile-friendly business website and a professional email address.

Your website should clearly explain what you sell and how customers can buy your product or book your services. Include prices, contact details, store hours, and relevant shipping or return terms.

Use customer research to choose a few key marketing channels:

• Organic marketing. Publish useful search-friendly content, maintain relevant social profiles, and collect customer email addresses with permission.
• Advertising and public relations. Test paid campaigns with a defined budget and measurable goal. Contact local media or industry publications when the business has timely news, such as a launch, new product, or community partnership.

How much does an LLC cost in South Carolina?

Forming a South Carolina LLC costs at least $110. The fee covers filing articles of organization with the secretary of state. A retail business generally pays at least $160 because it also needs a $50 retail license.

Ongoing South Carolina LLC costs

South Carolina does not charge an annual report fee for standard LLCs. However, main recurring expenses may include: a local business license renewal, commercial registered agent service, insurance, and tax preparation.

An LLC taxed as an S corporation or C corporation has added obligations. It must file an annual corporate return with the South Carolina Department of Revenue, which includes an annual report. The LLC must also pay a corporate license fee equal to 0.1% of capital and paid-in surplus (the extra money investors pay for a company's stock above the stated value) plus $15. The minimum annual fee is $25.

The $50 retail license does not expire while the same taxpayer operates at the same location. Local business licenses are generally renewed each year.

This post is for information only. You are responsible for reviewing and using this information appropriately. This content doesn’t contain and isn’t meant to provide legal, tax or business advice. Requirements are updated frequently and you should make sure to do your own research and reach out to professional legal, tax, and business advisers, as needed. Businesses outside of South Carolina will have different steps and requirements. To sell products using the Shopify platform, you must comply with the laws of the jurisdiction of your business and your customers, the Shopify Terms of Service, the Shopify Acceptable Use Policy, and any other applicable policies.