South Carolina Business Compliance Checklist

South Carolina has no LLC annual report requirement — one of the lowest ongoing compliance burdens. This page covers everything from filing fees to sales tax to hiring laws.

LLC Filing

$110

Annual Report

$0

Every year

Sales Tax

6%

state base rate

Franchise Tax

No

1. Entity Formation

LLC filing fee (Articles of Organization)$110
Corp filing fee (Articles of Incorporation)$135
Registered agent requiredYes — must have a physical address in the state
Publication requirementNo
Processing time~7 business days (expedited available for extra fee)

2. Annual Maintenance

Annual/periodic reportEvery year — fee $0
Franchise taxNone

3. Sales Tax

State base rate6%
Combined rate range (with local)6% – 9%
Economic nexus (out-of-state seller)$100,000 per year
Marketplace facilitator lawYes — marketplaces (Amazon, Etsy) collect on your behalf.

Need to check nexus across multiple states? Use our Sales Tax Nexus Checker.

4. Employer Requirements

Minimum wage$7.25/hr (2025)
Paid sick leave lawNone (federal only)
Non-compete enforceabilityEnforceable — reasonable scope and duration required
Contractor classification testCommon-law (IRS) test

Full employment law breakdown: South Carolina Hiring Laws.

5. Workers' Compensation

South Carolina allows private-market workers' comp insurance (competitive market). Coverage is required starting with your 4th employee.

Estimate your premium with our Workers' Comp Calculator.

6. State Income Tax

Progressive brackets — top marginal rate is 6.2%.

Compliance by Business Structure

Pick your structure to see structure-specific compliance items.

What Makes South Carolina Distinctive

Compliance quirks and rules that separate South Carolina from other states — worth understanding before you file.

  • South Carolina charges $110 for LLC formation and has no annual report requirement — very low ongoing cost.
  • South Carolina Secretary of State (sos.sc.gov) handles entity filings.
  • South Carolina is a right-to-work state.

This is a reference, not legal advice.

State fees and rules change. Verify current values with the South Carolina Secretary of State, Department of Revenue, and Department of Labor before filing. For complex situations, consult a licensed CPA or attorney.