South Carolina doesn’t have a Franchise Tax by name, but does have an “Annual License Fee” for Corporations that closely resemble a Franchise Tax. It applies to Corporations transacting or conducting business within South Carolina.
The annual license fee is included within Form SC1120, the South Carolina Corporate Income Tax Return, and it’s typically filed by a tax accountant.
This ongoing annual license fee is separate from the initial Annual Report (Form CL-1) filed with the Secretary of State within 60 days of incorporation, which carries its own $25 minimum license fee.
Annual License Fees are due at the same time as the Annual Report, which is filed as part of the C Corporation Income Tax Return or request for extension, each year by the 15th day of the fourth month after the end of your business year—April 15 for calendar-year filers.
The license fee is for the privilege of conducting business in the succeeding year and is paid when the income tax return for the prior year is due.
Corporations with an annual tax liability of $15,000 or more are required to file and pay electronically through MyDORWAY.
C Corporations must pay an annual License Fee calculated as 0.1% (one mill per dollar, or $0.001) of capital stock and paid-in or capital surplus, plus $15.
"Paid-in or capital surplus" means the entire surplus of a corporation other than earned surplus (retained earnings), which is specifically excluded from the calculation.
Key details:
For short-year returns, South Carolina prorates the license fee by month, but never below the $25 minimum.
South Carolina's Annual License Fee calculations tie directly to your corporate income tax return—work your accountant handles.
Discern doesn't file these taxes, but we do file your ongoing annual reports, track every April 15 deadline, provide registered agent services, and keep you compliant in every state where you operate.
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