StructureCost2026

South Carolina: what each business structure costs a year

At $100,000 profit, an LLC taxed as an S corp costs $5,831 a year less than a sole proprietorship in South Carolina. All figures are 2026 tax and fees.

$5,831 a year

less as an LLC taxed as an S corp than as a sole proprietorship in South Carolina, at these numbers. That includes the state's pass-through entity tax election.

More settings revenue, salary, filing status, payroll costs, PTET

South Carolina, 2026: $100,000 profit, single filer

StructureYearly costvs yoursTo set up
Sole proprietorship yours $25,459 $0
Itemized: $25,459
Self-employment taxirs.gov, 2026 rates$14,130
Federal income taxirs.gov, 2026 rates$8,235
State income taxdor.sc.gov, checked Oct 22, 2026$3,094
Yearly cost$25,459
Single-member LLC $25,459 +$0 $110
Itemized: $25,459
Self-employment taxirs.gov, 2026 rates$14,130
Federal income taxirs.gov, 2026 rates$8,235
State income taxdor.sc.gov, checked Oct 22, 2026$3,094
Yearly cost$25,459
LLC taxed as an S corp lowest $19,628 −$5,831 $110
Itemized: $19,628
Payroll tax on your salaryirs.gov, 2026 rates$6,310
Payroll service and tax return (estimate)$1,800
South Carolina corporate license feedor.sc.gov, checked Oct 22, 2026$25
South Carolina pass-through entity tax, paid by the company (elected)dor.sc.gov, checked Oct 22, 2026$1,648
Federal income taxirs.gov, 2026 rates$9,347
State income tax, after the PTET exclusiondor.sc.gov, checked Oct 22, 2026$498
Yearly cost$19,628
S corporation $19,628 −$5,831 $135
Itemized: $19,628
Payroll tax on your salaryirs.gov, 2026 rates$6,310
Payroll service and tax return (estimate)$1,800
South Carolina corporate license feedor.sc.gov, checked Oct 22, 2026$25
South Carolina pass-through entity tax, paid by the company (elected)dor.sc.gov, checked Oct 22, 2026$1,648
Federal income taxirs.gov, 2026 rates$9,347
State income tax, after the PTET exclusiondor.sc.gov, checked Oct 22, 2026$498
Yearly cost$19,628
C corporation $29,413 +$3,954 $135
Itemized: $29,413
Payroll tax on your salaryirs.gov, 2026 rates$6,310
Payroll service and tax return (estimate)$2,000
South Carolina corporate license feedor.sc.gov, checked Oct 22, 2026$25
State corporate income taxdor.sc.gov, checked Oct 22, 2026$2,736
Federal corporate income tax (21%)irs.gov, 2026 rates$10,918
Federal income taxirs.gov, 2026 rates$4,948
State income taxdor.sc.gov, checked Oct 22, 2026$2,476
Yearly cost$29,413
What these figures count
  • State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
  • Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
  • The 20% qualified business income deduction with its income limits and the professional-service rule.
  • Yearly report fees, and a cost you can change for payroll and the business tax return.

Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.

When an S corp election pays in South Carolina

Electing S corp tax treatment for an LLC starts to pay in South Carolina at about $50,000 of profit, with the default salary and $1,800 a year for payroll and the extra tax return.

An S corp in South Carolina can elect to pay the state's income tax itself, a pass-through entity tax of 3%, and the owner gets that income left out of the personal return. The company deducts it on the federal return, so it is not held to the SALT cap. The calculator uses it when it lowers the totaldor.sc.gov.

ProfitSole propLLCLLC as S corpC corp
$30,000$5,437$5,437$6,871$7,371
$50,000$10,405$10,405$10,164$12,619
$75,000$17,379$17,379$13,334$19,726
$100,000$25,459$25,459$19,628$29,413
$150,000$43,122$43,122$33,741$50,337
$200,000$61,367$61,367$48,800$70,443
$300,000$105,202$105,202$81,566$112,058

Single filer, no other income, revenue taken as 1.5 times profit, default salary. The lowest cost in each row is marked.

State fees and taxes in South Carolina

LLCCorporation
Filing to form$110Articles of Organization$135Articles of Incorporation with Initial Annual Report (CL-1)scstatehouse.gov
Yearly reportNo yearly report feeAnnual report (Schedule D of SC1120 or SC1120S), no feescstatehouse.gov
Report dueNoneWith the corporate return, 15th day of the 4th month after year end (3rd month for S corps)
South Carolina corporate license fee$25if taxed as S corpyesdor.sc.gov

Not in the calculator: Most SC cities and counties charge a business license tax based on gross receipts, with rates set locally under the standardized business license law. Not modelled.

Switching calculators for South Carolina

By profession in South Carolina

Questions

Is an S corp worth it in South Carolina?

On these figures, from about $50,000 of profit. At $100,000 an LLC taxed as an S corp costs $19,628 a year against $25,459 for a plain LLC, $5,831 less. The saving comes from paying Social Security and Medicare tax on a salary instead of on all profit.

How much does an LLC cost per year in South Carolina?

The state charges no yearly report fee. Forming one costs $110.

Does South Carolina recognise the S corp election?

Yes. The federal election carries over with no separate state form. Follows the federal S election. S corps pay the license fee and withhold 5% on nonresident shareholders. Owners may elect a lower rate on active trade or business income (Form I-435); not modelled.

What income tax does South Carolina charge?

South Carolina taxes personal income in 2 brackets, from 1.99% to 5.21% (2026, single filer). C corporations pay 5% of net income.

How this page models South Carolina (1)

Sources checked 2026-10-22. Each figure links to the state or IRS page it comes from.

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