South Carolina Corporation

You can get an EIN directly from the IRS. The application is free, and most businesses can apply online. However, if you don’t have a social security number, you’ll need to submit a paper application form. Can’t bear to fill out yet another application? Hire Northwest to get your EIN for you. Just add on EIN service during checkout when you sign up for our incorporation service.

Corporate bylaws cover basic policies and procedures for issues such as company finances and management. Bylaws should cover a range of topics, answering key questions like those below:

• Meetings: When and where will meetings for shareholders and directors be held? How many attendees are required to transact business? What are the procedures for voting or proxy voting? How do you call a special meeting? What actions can be taken without a meeting?

• Stock: How are stock certificates issued and transferred? How is voting affected by issues such as corporate stock owners or fractional shares?

• Directors and officers: How many directors must there be? Which officer positions are required? What powers do they have? How do you fill a vacancy or remove a director or officer?

• Finances: What are the procedures for retaining profits, issuing dividends, and paying bills? Who can withdraw money from the corporate bank account or sign checks?

• Records: Where is the corporate book to be kept? What information will be maintained? How are requests for review or access honored? Can records or copies be kept or distributed digitally?

• Amendments and emergencies: Who can amend bylaws and how? Can emergency bylaws be adopted in the case of disaster?

South Carolina bylaws can make other provisions as well, assuming additions are in accordance with both state law and your corporation’s Articles of Incorporation. For example, per SC Code § 35-2-105 (2019) you can include bylaws that can limit or expand the voting rights of those who have recently become control shareholders. If not specified in your bylaws or articles, new control shareholders will have the same voting rights that were accorded to the shares before they were acquired.

Creating bylaws can be overwhelming—where do you start? Northwest can help. We give you free corporate bylaws when you hire us to form your South Carolina corporation. We know what kinds of topics and questions corporations need to address, and we’ve spent years refining and improving our forms. We offer many other free corporate forms as well, including templates for resolutions and meeting minutes.

The South Carolina Annual Report and Annual License Fee are filings you must submit each year. Both are bundled together with the state’s corporate income tax return SC 1120 (C Corp) or SC1120S (S Corp).

The Annual Report is Schedule D (page 3 of both forms), and requires you to update your contact, ownership, and share information. Corporations, including S corps, are also subject to a yearly fee called the Annual License Fee.

A minimum of $25 for the Annual License Fee. The fee is $15 plus 0.1% of your corporation’s capital and paid-in surplus and is due along with your corporate income tax each year (it’s reported on the same return).

For C corporations, the filing is due by the 15th day of the 4th month following the end of your tax year (that’s April 15th for those operating on a typical calendar year). For S corporations, the return is due by the 15th day of the 3rd month following the end of the tax year (typically March 15th).

These filings can be easy to forget—which is why we send our clients automatic reminders for your South Carolina Annual Report and Annual License Fee filings. Or better yet, let us file for you. With our business renewal service, we send you the completed annual report for you to add your tax information, then submit the report for you for $100 plus the state fee and any tax owed.

Besides the annual Annual License Fee discussed above, South Carolina corporations also have to pay a net income tax rate of 5%.

The state sales tax rate is 6%, but there are typically local sales tax rates as well. To get an idea of what customers actually pay at the counter, below are the total sales tax rates for the 5 largest cities in South Carolina:

Columbia: 8%
Charleston: 9%
North Charleston: 9%
Mount Pleasant: 9%
Rock Hill: 7%

Yes, if you need a retail license or are subject to the use tax registration, you’re required to register with the South Carolina Department of Revenue. Use tax registration is for non-retailers that regularly buy products or services for the business’s use from out-of-state, in cases where the South Carolina sales or use tax has not been collected by the purchaser.

You can register via MyDORWAY. You’ll need your EIN before you can register.

At least $135. This includes the $110 fee to submit your Articles and the $25 fee to submit your Initial Report. Filing online? Add on a $15 processing fee. Domestic corporations also need a South Carolina licensed attorney to sign their Articles. Unless you’re buddies with a local attorney, this can get pretty expensive.

At Northwest, we can have our South Carolina attorney sign your filing for $100. This does not constitute any legal advice or relationship with our attorney, but this is much cheaper than you can find anywhere else.

Hire Northwest to form your South Carolina corporation and your total, out-the-door cost is $475. Incorporation with Northwest includes state fees, attorney signature, a full year of registered agent service, business address, and the tools and forms to help launch your business.

Create a South Carolina Business Entities Online account and file your Articles of Incorporation online for the fastest processing time of 2 days (although you’ll shell out an extra $15 for online processing). Note that you’ll still need an attorney signature.

If you’d rather save your $15 for a plate at Bessinger’s or Melvin’s, forgo online processing, and submit by mail. The downside? It takes a lot longer—you could end up waiting a 1-2 weeks.

The state itself doesn’t mandate a general business license. However, you’ll likely need a general license from either the city or county in which you’re operating. For instance, cities like Greenville and Simpsonville—and counties like Richland County and Charleston County—all require businesses to obtain annual business licenses.

For some license applications you may need an EIN or a certified copy of your Articles of Incorporation. At Northwest, we can streamline the process and get these for you—simply add on these items during checkout.

A corporation formed outside of South Carolina—but which conducts business in the state—is considered a foreign South Carolina corporation. For example, if you incorporated in Georgia but decide to open a storefront in South Carolina, you would be a foreign South Carolina corporation. This also means you would need to register with the state by filing an Application for Certificate of Authority to Transact Business with the South Carolina Secretary of State. Foreign corporations are required to file the South Carolina Annual Report and Annual License Fee each year as well.

Absolutely! We’re happy to start a nonprofit corporation for you. Note that incorporating a South Carolina nonprofit requires a different form. The filing fee is lower as well. South Carolina nonprofits are not required to submit an annual report, but submit Form 990-T (a state corporate tax return) every year.

It’s a conundrum: you need a local number to display on your website and give to customers, but you don’t want to make your personal number quite so…public. We get it. And we’ve got you covered with Northwest Phone Service. We can provide you with a virtual phone number in any state—plus unlimited call forwarding and tons of easy-to-use features. You can try Phone Service free for 60 days when you hire us to form your corporation, and maintaining service is just $9 monthly after that. No contract required.