South Carolina LLC Tax Filing: Forms & Due Dates (2026)

Q: How is a South Carolina LLC taxed?

By default it is a pass-through. A single-member LLC is disregarded and its income is reported on the owner's SC1040; a multi-member LLC files the SC1065 partnership return and passes income to the members, who report it on their own returns. An LLC can elect to be taxed as an S corporation (SC1120S) or C corporation (SC1120).

Q: Does a South Carolina LLC pay state income tax at the entity level?

Not by default. A pass-through LLC pays no entity-level South Carolina income tax; the income is taxed to the members on their individual returns. Only an LLC that elects C-corporation treatment pays the 5% corporate income tax on its own return.

Q: When are South Carolina LLC tax returns due?

For calendar-year filers, the SC1040 individual return and the SC1120 C-corporation return are due April 15, and the SC1065 partnership return and SC1120S S-corporation return are due March 15 - the 15th day of the third month after year-end.

Q: What is the South Carolina active trade or business income tax rate?

South Carolina lets pass-through owners elect a flat income tax rate on active trade or business income using Form I-335, instead of the graduated individual rates that apply to other income. The flat rate is set by statute and has been reduced in recent years, so confirm the current rate with the SC Department of Revenue before you file.

Q: Does a South Carolina LLC collect sales tax?

If it makes retail sales it must obtain a Retail License for $50 per location and collect the 6% statewide sales and use tax, filing returns on Form ST-3. Sales tax applies regardless of how the LLC is taxed for income.

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

A South Carolina LLC is a pass-through by default: a single-member LLC is disregarded and reports on the owner's SC1040, while a multi-member LLC files the SC1065 partnership return and passes income to the members. No entity-level state income tax applies unless the LLC elects corporate treatment - an S corporation files SC1120S and a C corporation files SC1120 and pays the 5% corporate income tax plus an annual license fee (minimum $25).

Quick Answer

Default tax: Pass-through - income taxed to members on their SC1040
Single-member LLC: Disregarded; report on owner's SC1040 + federal Schedule C/E/F
Multi-member LLC: Partnership; file SC1065 (due March 15)
Elect S corp: File SC1120S; add annual license fee (min $25)
Elect C corp: File SC1120; 5% corporate income tax + license fee
Sales tax: 6% state rate; $50 Retail License; file ST-3
Agency: South Carolina Department of Revenue (SCDOR)

How the IRS and South Carolina Classify Your LLC

An LLC is not a tax classification of its own - it is a state-law entity that the tax system slots into an existing category. By default the IRS treats a single-member LLC as a disregarded entity (its income is reported directly on the owner's return) and a multi-member LLC as a partnership. South Carolina conforms to that federal classification, so the way your LLC is taxed federally determines the South Carolina forms you file. The entity itself can also elect to be taxed as a corporation. This "check-the-box" framework comes from federal regulation 26 CFR § 301.7701-3. For the national picture see the LLC overview and our business tax hub.

Default Pass-Through Filing (Most LLCs)

Most South Carolina LLCs never pay income tax at the entity level. Instead, profit flows through to the members, who pay South Carolina individual income tax on their share. There are two default paths:

Single-member LLC (disregarded). You report the LLC's income and expenses on the federal Schedule C (business), E (rental), or F (farm) attached to your personal return, and the same income flows onto your South Carolina individual return, Form SC1040. The LLC files no separate South Carolina income tax return.
Multi-member LLC (partnership). The LLC files a South Carolina partnership return, Form SC1065, as an information return. It issues each member a share of the income, and the members report that share on their own SC1040 returns. The partnership itself generally owes no income tax, though it may have to withhold on nonresident members.

Because a default LLC pays no entity-level tax, it also owes no South Carolina corporate license fee. Members who work in the business owe federal self-employment tax on their share of the profit, and may need to make quarterly estimated tax payments to both the IRS and South Carolina.

South Carolina Individual Income Tax on LLC Income

Because pass-through LLC income lands on the members' individual returns, it is taxed at South Carolina's individual income tax rates. South Carolina uses a graduated individual income tax with a top marginal rate that the legislature has been reducing over recent years, so the exact bracket that applies to your income changes from year to year. Rather than rely on a stale figure, confirm the current rates and brackets on the South Carolina Department of Revenue's individual income tax page before you file. Because the schedule is indexed and periodically cut, treat the rate as a moving target and verify it each filing season.

South Carolina also offers a distinctive break for business owners: an election to tax active trade or business income at a flat rate, made on Form I-335, instead of applying the graduated individual rates to that income. The flat rate is set by statute and has been lowered in recent years. This election can reduce tax for owners whose other income would push the business income into a higher bracket, but it involves separating "active" income from passive and investment income, so it is worth modeling carefully. See S-corp vs LLC for how these owner-level taxes interact with an S-corp election.

Electing S-Corporation Treatment (SC1120S)

An LLC can elect to be taxed as an S corporation by filing federal Form 2553 with the IRS (after obtaining an EIN). The election is federal, but South Carolina recognizes it: an LLC taxed as an S corporation files Form SC1120S, the South Carolina S corporation return. Like a partnership, an S corporation is generally a pass-through - income flows to the members - but the owners can take part of the profit as a reasonable salary and part as a distribution, which can reduce self-employment tax. An S corporation electing this route also owes the South Carolina annual license fee. Learn more at Form 2553 explained and LLC or S-corp.

Electing C-Corporation Treatment (SC1120)

An LLC can also elect to be taxed as a C corporation (federal Form 8832, or Form 2553 for S status). A C-corporation LLC files Form SC1120 and pays South Carolina's 5% corporate income tax on its taxable income at the entity level, under South Carolina Code Title 12, Chapter 6. Profit distributed to members as dividends is then taxed again on the members' returns - the familiar "double taxation" of C corporations. Because of that, most small LLCs stay pass-through or elect S-corp treatment rather than C-corp, but C status can make sense for businesses reinvesting profit or seeking outside investors. See LLC vs corporation and S-corp vs C-corp to compare.

The Corporate License Fee and CL-1 Initial Report

An LLC that elects corporate treatment (S or C) picks up two extra obligations that pass-through LLCs never see. First, it must file the CL-1, Initial Annual Report of Corporations, and pay a one-time $25 minimum initial license fee within 60 days of commencing business in South Carolina. Second, it owes an annual license fee equal to 0.1% of the corporation's capital and paid-in surplus plus $15, with a minimum of $25 a year, reported with the corporate income tax return. Default pass-through LLCs owe neither the CL-1 nor the annual license fee. See South Carolina annual report and taxes for detail.

South Carolina LLC Tax Forms and Due Dates (2026)

The table maps each classification to its South Carolina form and calendar-year due date, verified against the South Carolina Department of Revenue. Fiscal-year filers use the equivalent month after year-end.

How the LLC is taxed	South Carolina form	Due date	Entity-level tax
Single-member (disregarded)	Owner's SC1040 + federal Schedule C/E/F	April 15	None (taxed to owner)
Multi-member (partnership)	SC1065 partnership return	March 15	None (passes through)
Elected S corporation	SC1120S	March 15	License fee (min $25)
Elected C corporation	SC1120	April 15	5% income tax + license fee
Corporate election - initial report	CL-1	Within 60 days of commencing	$25 minimum (one-time)
Sales tax (any retailer)	ST-3 (Retail License first)	Monthly/quarterly per SCDOR	6% sales & use tax

Sales Tax and Employer Withholding

Two taxes apply regardless of how your LLC is classified for income. If your LLC makes retail sales, you must obtain a Retail License - $50 per permanent location under South Carolina Code § 12-36-510 - and collect the 6% statewide sales and use tax, filing returns on Form ST-3 (local option taxes can raise the combined rate in some counties). If your LLC has employees, you must register for South Carolina withholding, deduct state income tax from wages, and remit it to the SCDOR, reconciling annually on Form WH-1606. You register for these tax accounts using Form SCDOR-111. See business licenses in South Carolina and how to file business taxes.

Common South Carolina LLC Tax Mistakes

A few errors recur. Owners sometimes assume a single-member LLC must file its own South Carolina return - it does not; the income belongs on the owner's SC1040. Others forget the SC1065 partnership return is due March 15, a month before the individual deadline, and miss it. LLCs that elect corporate treatment frequently overlook the CL-1 60-day deadline or the recurring license fee. Retailers occasionally start selling before obtaining a Retail License, exposing themselves to the uncollected 6% tax plus penalties. And owners electing S-corp treatment sometimes skip a reasonable salary, which the IRS can recharacterize. Confirm current forms, rates, and deadlines with the SCDOR, and keep your EIN and accounting records aligned across federal and state returns.

Frequently Asked Questions

How is a South Carolina LLC taxed?

By default as a pass-through. A single-member LLC is disregarded and reports on the owner's SC1040; a multi-member LLC files the SC1065 and passes income to the members. An LLC can elect S-corp (SC1120S) or C-corp (SC1120) treatment instead.

What tax forms does a South Carolina LLC file?

A single-member LLC reports on the owner's SC1040 with federal Schedule C, E, or F. A multi-member LLC files the SC1065. An S-corp LLC files SC1120S, and a C-corp LLC files SC1120 and pays the 5% corporate income tax plus the annual license fee.

Does a South Carolina LLC pay state income tax at the entity level?

Not by default - a pass-through LLC pays no entity-level tax; the income is taxed to the members. Only an LLC that elects C-corporation treatment pays the 5% corporate income tax on its own return.

When are South Carolina LLC tax returns due?

For calendar-year filers, the SC1040 and SC1120 are due April 15, and the SC1065 and SC1120S are due March 15 (the 15th day of the third month after year-end).

What is the South Carolina active trade or business income rate?

South Carolina lets pass-through owners elect a flat rate on active trade or business income using Form I-335, instead of the graduated individual rates. The flat rate is set by statute and has been reduced recently, so confirm the current figure with the SCDOR.

Does a South Carolina LLC collect sales tax?

If it makes retail sales, yes - obtain a $50 Retail License and collect the 6% sales and use tax, filing on Form ST-3, regardless of how the LLC is taxed for income.

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; 5% corporate income tax; due 15th day of 4th month).
South Carolina Department of Revenue - S Corporation (Form SC1120S; due 15th day of 3rd month; license fee).
South Carolina Department of Revenue - Partnership (Form SC1065 partnership return).
South Carolina Department of Revenue - Individual Income Tax (graduated rates; SC1040; Form I-335 active trade or business election).
South Carolina Department of Revenue - Sales & Use Tax (6% statewide rate; Retail License; Form ST-3).
South Carolina Department of Revenue - Withholding Tax (employer registration; WH-1606 reconciliation).
South Carolina Department of Revenue - Business Tax Registration (Form SCDOR-111 for tax accounts).
South Carolina Code - Title 12, Chapter 6, Income Tax Act (5% corporate rate; individual income tax; I-335 active trade or business income).
South Carolina Code - Title 12, Chapter 36, §12-36-510 ($50 Retail License per location; 6% sales tax).
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. Tax laws, rates, forms, and deadlines change; verify current requirements with the South Carolina Department of Revenue and the IRS before acting.