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.
C corporations, S corporations, and LLCs taxed as corporations must file through the Department of Revenue.
South Carolina uses a system where the Secretary of State handles formation, while the Department of Revenue manages ongoing reporting through the tax filing process.
New corporations must submit Form CL-1 (Initial Annual Report of Corporations) and a minimum license fee of $25. Per SC Code §12-20-50(A), the license fee is $15 plus $1 per $1,000 of capital stock and paid-in or capital surplus, with a $25 floor. The CL-1 is a one-time initial filing that applies to:
You can submit Form CL-1 through the SOS formation workflow at sos.sc.gov/online-filings when registering your business, or through MyDORWAY. Check current SCDOR and SOS guidance for the latest filing channels, as system options are subject to change.
After the initial CL-1 filing, corporations and LLCs taxed as corporations must file annual corporate tax returns (SC1120 or SC1120S) with the Department of Revenue. The annual report is included as Schedule D of these returns. For calendar-year filers, the SC1120 (C corporations) is due April 15 and the SC1120S (S corporations) is due March 15 (confirm against current SC1120 instructions each year, as deadlines track the federal calendar and are subject to change).
Standard LLCs (those taxed as partnerships or disregarded entities) do not file annual reports or Form CL-1 in South Carolina. The CL-1 form states explicitly: "LLCs should only complete the CL-1 if they're taxed as a corporation."
You must file the CL-1 within 60 days of commencing business or using capital in South Carolina, per SC Code §12-20-40(B). The 60-day clock runs from that date, not from the date of incorporation or registration.
Failing to file within 60 days may result in penalties. Per the CL-1 form instructions, the consequences can include:
For ongoing corporate tax returns (SC1120), the SCDOR may also assess a late filing penalty of up to $500 on the corporate return generally. Any Corporate Income Tax or License Fee due must be paid by the original due date regardless of any filing extension obtained.
Continued non-compliance can lead to administrative dissolution by the South Carolina Secretary of State. According to the SCDOR Corporate FAQs, failure to file may result in administrative dissolution. Loss of corporate status can create significant legal and practical risks, including challenges to contracts or potential personal liability. Consult qualified legal counsel if your entity faces dissolution to understand your options under South Carolina law.
Gather these items before filing to streamline the process.
South Carolina's tax-integrated annual report system creates unique challenges for entity management, especially for businesses operating across multiple states with different filing structures.
Discern handles registered agent services, annual report filings, entity formations, and foreign registrations across 51+ jurisdictions, keeping your entities in good standing so you can focus on running your business rather than tracking filing deadlines across states.
Here are answers to common questions about South Carolina's annual report and corporate tax filing process.
How do I correct an annual report I already submitted?
For errors on Form CL-1, file a corrected CL-1 with the Department of Revenue (and coordinate with the Secretary of State if the error affects your formation or authority filing). For errors on your corporate tax return (including Schedule D), file an amended return (SC1120X or SC1120SX) with the Department of Revenue.
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. Standard LLCs (taxed as sole proprietorships or partnerships) don't file annual reports in South Carolina. Only LLCs that elected corporate taxation must file Form CL-1 initially, followed by annual corporate tax returns (SC1120 or SC1120S).
What's the difference between an annual report and a tax return in SC?
For corporations in South Carolina, they're integrated. Your annual report information is included as Schedule D of your corporate tax return (SC1120 or SC1120S), not filed as a separate document with the Secretary of State. Per SC Code §33-16-220, every corporation organized or qualified in the state must file an annual report as provided in Title 12.
Can I get a filing extension?
Per SC Code §12-6-4980(A), the SCDOR may allow an extension of up to six months for filing returns, including the annual report. However, any Corporate Income Tax or License Fee due must still be paid by the original due date. Where no payment is due, a taxpayer granted a federal extension does not need to separately apply to SCDOR for a South Carolina extension.
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