South Carolina LLC Annual Report & Taxes (2026)

Q: Does a South Carolina LLC file an annual report?

Not if it is a standard LLC. An LLC taxed as a partnership or disregarded entity files no annual report with the Secretary of State or SCDOR. Only an LLC that elects corporate tax treatment files the CL-1 initial report and an annual corporate return.

Q: What is the CL-1 form in South Carolina?

The CL-1 is the Initial Annual Report of Corporations. A corporation, or an LLC taxed as a corporation, files it and pays a one-time $25 minimum initial license fee within 60 days of commencing business in South Carolina.

Q: How is a South Carolina LLC taxed?

By default it is a pass-through: single-member LLCs are disregarded and multi-member LLCs are partnerships, so income flows to the owners' South Carolina individual returns. An LLC can elect S-corp or C-corp treatment and file SC1120S or SC1120 instead.

Q: When are South Carolina corporate returns due?

For calendar-year filers, the C corporation return (SC1120) is due the 15th day of the fourth month (April 15) and the S corporation return (SC1120S) is due the 15th day of the third month (March 15).

Q: What is the South Carolina corporate license fee?

An annual license fee of 0.1% of capital and paid-in surplus plus $15, with a minimum of $25 a year, applies to corporations and LLCs taxed as corporations. It is reported with the corporate income tax return.

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

A standard South Carolina LLC files no annual report with the Secretary of State or the Department of Revenue. Only an LLC taxed as a corporation files the CL-1 Initial Annual Report of Corporations - with a one-time $25 minimum license fee within 60 days of commencing business - and an annual corporate return. By default an LLC is a pass-through, so its income is taxed on the owners' South Carolina individual returns.

Quick Answer

Standard LLC annual report: None (no Secretary of State or SCDOR annual report)
Default tax: Pass-through - owners pay SC individual income tax
If taxed as a corporation: File CL-1; $25 minimum initial license fee within 60 days
Corporate return: SC1120 (C corp) due month 4, day 15; SC1120S (S corp) due month 3, day 15
Annual license fee: 0.1% of capital + $15, minimum $25
Sales tax: 6% state rate; $50 Retail License if you make sales

Why a Standard South Carolina LLC Files No Annual Report

South Carolina does not impose an annual report or franchise-style filing on a standard LLC. An LLC taxed as a partnership or as a disregarded entity has no Secretary of State annual report and no separate LLC report to the Department of Revenue simply for existing. This sets South Carolina apart from states that charge a yearly LLC report fee. The only recurring obligations for most LLCs are federal and South Carolina income tax on the members and, if the LLC sells taxable goods, ongoing sales tax. Practically, this means most South Carolina LLC owners never file anything with the Secretary of State after formation unless they change the entity itself - for example, amending the Articles of Organization or updating the registered agent. There is no yearly good-standing fee to keep the LLC active. For the formation process see how to form an LLC in South Carolina, and for the full fee picture see South Carolina LLC cost.

How South Carolina Taxes an LLC

South Carolina follows the federal classification of an LLC. By default, the IRS treats a single-member LLC as a disregarded entity - its income is reported on the owner's return - and a multi-member LLC as a partnership that files an information return and passes income through to the members. South Carolina income tax then applies at the member level. An LLC can instead elect to be taxed as a corporation, which changes the filings and adds the corporate license fee. See S-corp vs LLC for how an election changes the math and the national LLC overview for background.

Pass-Through Filing (Default LLCs)

A default South Carolina LLC does not pay income tax at the entity level. A single-member LLC's business income flows to the owner's South Carolina individual income tax return (Form SC1040) through the federal Schedule C, E, or F. A multi-member LLC files a South Carolina partnership return (Form SC1065) and issues each member their share of income, which the members then report on their own returns. Because the income is taxed to the members, there is no separate corporate license fee for a default LLC. Members who actively work in the business also owe federal self-employment tax on their share of the profit, and may owe South Carolina quarterly estimated tax if enough is not withheld elsewhere. Keep your EIN and member records current so the pass-through reporting is clean, and see quarterly estimated taxes for the payment schedule.

LLCs Taxed as Corporations: CL-1 and Annual Returns

An LLC that elects corporate tax treatment is treated like any South Carolina corporation for state filing. It must complete the CL-1, Initial Annual Report of Corporations, and pay a one-time $25 minimum initial license fee within 60 days of commencing business or using capital in the state. After that, it files an annual corporate income tax return and reports the annual license fee on that return. A C-corporation files Form SC1120 and pays the 5% corporate income tax; an S-corporation files Form SC1120S. For an S-corp election you file federal Form 2553 after obtaining your EIN.

The South Carolina Corporate License Fee

The corporate license fee is South Carolina's recurring charge on corporations and LLCs taxed as corporations - it is not imposed on default pass-through LLCs. The annual license fee is 0.1% of the corporation's capital and paid-in surplus plus $15, with a minimum of $25 a year. It is reported with the corporate income tax return and applies to the tax year following the income tax year. Both C-corporations and S-corporations owe it. This fee, not an LLC annual report, is the closest thing South Carolina has to a recurring entity charge.

Filing Deadlines and Forms (2026)

The table summarizes the South Carolina filings by how the LLC is taxed, each verified against the South Carolina Department of Revenue. Deadlines assume a calendar-year filer; a fiscal-year filer uses the equivalent month after year-end.

How the LLC is taxed	Main form	Due date	License fee
Single-member (disregarded)	Owner's SC1040 + federal Schedule C/E/F	April 15	None
Multi-member (partnership)	SC1065 partnership return	15th day, 3rd month	None
Taxed as S corporation	SC1120S	15th day, 3rd month (Mar 15)	0.1% + $15, min $25
Taxed as C corporation	SC1120	15th day, 4th month (Apr 15)	0.1% + $15, min $25
Initial report (corporate election)	CL-1	Within 60 days of commencing	$25 minimum (one-time)

Sales Tax and the Retail License

Sales tax is separate from income tax and applies to any LLC that makes retail sales, regardless of how the LLC is taxed for income. South Carolina's statewide sales and use tax rate is 6%, and any retailer must obtain a Retail License before making sales. Under Section 12-36-510 the Retail License costs $50 per permanent location (artists and craftsmen selling at shows pay a $20 license instead). You register for tax accounts, including sales tax, using Form SCDOR-111. See business licenses in South Carolina for the difference between the Retail License and local business licenses.

Penalties for Late or Missed Filings

Late corporate filings carry cost. The Department of Revenue can assess interest and penalties on a CL-1 or corporate return filed after its deadline, and interest accrues at the applicable rate on unpaid amounts. An LLC that makes retail sales without a Retail License is operating unlawfully and can owe the uncollected tax plus penalties. Because a default pass-through LLC has no annual state report, its main exposure is on the individual owners' income tax filings. Keeping the CL-1, corporate returns, and sales tax filings current avoids these charges. Confirm current penalty and interest rates with the SCDOR.

Frequently Asked Questions

Does a South Carolina LLC file an annual report?

Not a standard LLC. An LLC taxed as a partnership or disregarded entity files no annual report with the Secretary of State or SCDOR. Only an LLC electing corporate treatment files the CL-1 and an annual corporate return.

What is the CL-1 form in South Carolina?

The Initial Annual Report of Corporations. A corporation, or an LLC taxed as a corporation, files it and pays a one-time $25 minimum initial license fee within 60 days of commencing business.

How is a South Carolina LLC taxed?

By default as a pass-through: single-member LLCs are disregarded and multi-member LLCs are partnerships, so income flows to the owners' South Carolina returns. An LLC can elect S-corp or C-corp treatment and file SC1120S or SC1120.

When are South Carolina corporate returns due?

For calendar-year filers, the SC1120 (C corp) is due April 15 and the SC1120S (S corp) is due March 15 - the 15th day of the fourth and third months after year-end, respectively.

What is the South Carolina corporate license fee?

0.1% of capital and paid-in surplus plus $15, with a minimum of $25 a year, for corporations and LLCs taxed as corporations. It is reported with the corporate income tax return.

Sources

South Carolina Department of Revenue - Corporate FAQs (CL-1 initial report; $25 minimum license fee; 60-day deadline; annual license fee 0.1% + $15).
South Carolina Department of Revenue - C Corporation (Form SC1120; 15th day of 4th month; 5% income tax; license fee).
South Carolina Department of Revenue - S Corporation (Form SC1120S; 15th day of 3rd month; license fee 0.1% + $15, min $25).
South Carolina Department of Revenue - Business Tax Registration (Form SCDOR-111 for tax accounts).
South Carolina Department of Revenue - Sales & Use Tax (6% statewide rate; Retail License requirement).
South Carolina Code - Title 12, Chapter 36, §12-36-510 ($50 Retail License per location; $20 artist/craftsman license).
South Carolina Code - Title 33, Chapter 44, Uniform LLC Act (LLC formation and status underlying tax classification).
South Carolina Secretary of State - FAQs About Business Entities (no LLC annual report to the Secretary of State).
IRS - Limited Liability Company (LLC) (default federal classification).
IRS - About Form 2553 (S-corporation election).
IRS - S Corporations (federal S-corp treatment).
Legal Information Institute - 26 CFR § 301.7701-3 (entity classification / check-the-box).

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current requirements with the South Carolina Department of Revenue before acting.