If you have a limited liability company (LLC) in South Carolina, you’re not required to file an annual report unless you’ve elected to have your LLC taxed as a corporation. However, filing an annual report will keep your business in good standing, and it’s a relatively painless process that can be done online.
What Is an Annual Report?
An annual report verifies your business information and tells the state of South Carolina that your LLC is still operating. In addition, keeping up with annual reports is a legal requirement that enables you to obtain a Certificate of Existence, which a bank or creditor might request to confirm your compliance.
In South Carolina, the following information is required for the annual report:
How to File an Annual Report in South Carolina
In South Carolina, your annual report is filed as part of your state corporate tax return. To file online, you have to use approved tax software. In addition, you must file online if your tax liability is more than $15,000.
Approved software providers for South Carolina Corporate eFile (as of January 2022) are:
- Advanced Tax Solutions
- ATX – Universal
- CCH ProSystemFx
- Drake Software
- Intuit ProSeries
- Intuit Tax Online
- Online Taxes Inc
- RCS TaxSlayer
- UltraTax CS (Creative Solutions)
- UTS – TaxWise
If you’re eligible and you wish to file by mail, you can download the form and mail it as follows:
Mail Balance Due returns to:
SCDOR Corporate Taxable
PO Box 100151
Columbia, SC 29202
Mail Refund or Zero Tax returns to:
SCDOR Corporate Refund
PO Box 125
Columbia, SC 29214-0032
South Carolina doesn’t charge a fee for filing your annual report besides the tax owed. Reports are due on or before the 15th day of the fourth month after the close of the taxable year.
If You Do Business in Other States
If you do business in other states, be sure to register in those states as a foreign LLC. For example, if your LLC is registered in South Carolina and you start doing business in Florida, you’ll need to register in Florida as a foreign LLC.
You’re generally required to register as a foreign LLC if:
- You have a physical presence of any kind in that state
- You have employees in that state
- You regularly meet with clients, managers, or investors in that state
- You are licensed to do business in that state
Once you’ve registered as a foreign LLC, your business will need to follow the annual reporting requirements of that state and pay taxes in that state.
Filing an annual report in South Carolina is relatively easy and crucial to smooth business operations.
Failing to file an annual report can result in serious penalties, as can filing an inaccurate report.
Review all your business information and file your report on time to ensure your LLC remains in good standing.