Instead of filing with the Secretary of State, South Carolina corporations file their annual reports as part of their tax returns with the Department of Revenue. For LLC owners in South Carolina, there's good news: most LLCs don't need to file annual reports at all, regardless of their tax status.
C corporations, S corporations, and LLCs taxed as corporations must file through the Department of Revenue’s tax system.
Unlike most states, where you submit a simple form to the Secretary of State, South Carolina requires corporations to file annual reports as part of their tax returns with the Department of Revenue.
New entities must submit form CL-1 and a $25 fee to the SC Secretary of State. This applies to:
You can take care of this online at sos.sc.gov/online-filings when registering a business. LLCs only need to file this initial filing if they're taxed as a corporation.
You must file the CL-1 within 60 days of starting business in South Carolina. Skip this step and you could face significant late fees and penalties.
Continued non-compliance will lead to administrative dissolution by the South Carolina Secretary of State. When this happens, your business loses its legal standing to operate in South Carolina, potentially voiding contracts, disrupting banking relationships, and creating personal liability issues for owners and officers.
Organizing your information before filing can reduce your submission time from an hour to just 15 minutes. Use this checklist to prepare everything you'll need.
How do I correct an annual report I already submitted?
Since South Carolina's annual reports are part of your tax return filing, you must file an amended return with the Department of Revenue within 30 days of discovering the error.
Do I need original signatures if I file online?
No. Electronic signatures are fully acceptable for online filings through MyDORWAY. The person signing must be an authorized representative (officer, director, or owner), but physical signatures aren't required for electronic submissions. Maintain internal records documenting who submitted the filing and when.
Do most LLCs really not need to file an annual report in SC?
Correct. Unlike most states, standard LLCs don't file annual reports in South Carolina. Only LLCs that elected corporate taxation must file. This exception makes South Carolina's requirements significantly different from most states, where all LLCs must submit annual reports.
What's the difference between an annual report and a tax return in SC?
For corporations in South Carolina, it's the same thing. Your annual report information is included as part of your corporate tax return (SC1120 or SC1120S), not filed as a separate document with the Secretary of State, as in most other states. South Carolina's integrated approach streamlines the process but differs from standard practices.
South Carolina's tax-integrated annual report system creates unique challenges for entity management. For those managing multiple entities across different states, Secretary of State filings can feel like a never-ending maze. The secret is establishing efficient filing processes to ensure compliance without drowning in administrative tasks.
Discern offers a comprehensive solution for businesses managing multiple entities across various jurisdictions.
Let Discern help you handle compliance. Book a demo today, and we’ll have you up and running in minutes.
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