South Carolina is a straightforward, low-cost state to form an LLC in, with a modest filing fee and no separate annual state fee for LLCs in most years. This guide covers who it suits, what year one and year two cost on each PowerLaunch plan, the registered agent and reporting rules, and when a different state makes more sense.
Who South Carolina suits
South Carolina works well if you plan to have a physical presence, a warehouse, staff, or customers there, or if you simply want a state with a low setup fee and no yearly franchise charge for an LLC. It is not a popular "formation only" state the way Wyoming or Delaware are, so if your business has no real tie to South Carolina, weigh that against the states covered later in this guide.
What South Carolina charges
| Item | Cost |
|---|---|
| LLC filing fee | $110 |
| Corporation filing fee | $135 |
| Typical processing time | About 1 week |
| Yearly state cost for an LLC | $0 in most years (check for any annual report or franchise minimum that applies to your entity type) |
South Carolina's ongoing cost for an LLC is close to zero in a typical year, which keeps your long-term state bill low compared to states that charge an annual franchise tax or report fee. Rules can change or vary by entity type, so confirm current figures on the South Carolina Secretary of State's site before you file, and again each year.
Year one cost on each PowerLaunch plan
Your year one total is the PowerLaunch plan fee plus the $110 state filing fee, paid at cost with no markup.
| Plan | Plan fee | State fee | Year one total |
|---|---|---|---|
| Launch | $295 | $110 | $405 |
| Run | $1,995 | $110 | $2,105 |
| Scale | $2,995/yr or $329/mo | $110 | $3,105/yr or $329/mo plus $110 once |
If you want your EIN faster than the standard timeline, expedited EIN is a $295 add-on on Launch and Run, and it is already included on Scale.
What it costs after year one
Because South Carolina generally has no separate yearly state fee for an LLC, your ongoing cost is just your PowerLaunch plan renewal. That is a real advantage over states that add a franchise tax or annual report fee on top of your plan every year. Still, check the state's site each year in case an annual report requirement or minimum fee applies to your specific entity type, since this can change.
Registered agent and annual report
South Carolina requires every LLC to keep a registered agent with a physical address in the state. PowerLaunch includes registered agent service on every plan, so this is handled for you from day one and renews automatically as part of your plan.
On the annual report side, South Carolina's requirements are lighter than many states for LLCs, though corporations often have separate filing obligations. If you choose Run or Scale, PowerLaunch's annual state report filing is included in your plan, so you do not need to track the deadline yourself. On Launch, you would need to file this yourself if it applies to your entity, so check the state's site for what your specific structure owes.
State income tax, in general terms
South Carolina taxes income earned within the state. For a foreign-owned LLC with no physical presence, no employees, and no customers there, your South Carolina state income tax exposure is usually minimal, and your main filing obligations tend to be federal rather than state. If you do have a physical presence, staff, or in-state sales, you may owe South Carolina income tax on the portion of profit tied to that activity. State tax rules and thresholds change, so confirm your specific position with a licensed tax professional rather than relying on general guidance. Run and Scale include a licensed tax professional consultation as part of the plan.
Federal filings that apply regardless of state
If your LLC is foreign-owned and treated as a single-member disregarded entity, you generally need to file Form 5472 along with a pro forma 1120 by 15 April each year. This applies no matter which state you form in. Under the 2026 interim FinCEN rule, US-formed companies are currently exempt from BOI reporting, though you should check for updates before assuming this stays the same.
When Wyoming or Delaware would be the better choice
South Carolina is a fine choice if you have a genuine tie to the state. If you do not, and your business is purely online with no physical presence anywhere in the US, Wyoming or Delaware are often better defaults for non-resident founders, mainly because of formation speed and how well-known they are to banks and investors.
| Factor | South Carolina | Wyoming | Delaware |
|---|---|---|---|
| Formation speed | About 1 week | 1 to 3 business days | 1 to 3 business days |
| Filing fee | $110 (LLC) | Check state site | Check state site |
| Yearly state cost | $0 in most years | Low, check state site | Franchise tax applies, check state site |
| Best fit | Real presence in-state | Fully remote, no physical presence anywhere | Investor-facing, especially C-Corps raising funding |
Wyoming tends to suit founders who want the fastest, simplest formation with low ongoing cost and no physical presence tied to any one state. Delaware tends to suit founders planning to raise investment, especially through a C-Corporation, since investors and later-stage counsel are more familiar with Delaware corporate law. South Carolina sits between these when you have a real, practical reason to be there.
Step by step through PowerLaunch
- Pick your plan, Launch, Run, or Scale, based on how much bookkeeping and tax support you want alongside formation.
- Complete checkout at powerlaunch.solutions/signup and pay your plan fee plus the $110 South Carolina state filing fee.
- PowerLaunch prepares and files your formation documents, sets up your registered agent, and applies for your EIN.
- Expect formation in about a week, and EIN issuance in 2 to 4 weeks for non-resident owners without an SSN, faster with the expedited add-on.
- Once your EIN is issued, PowerLaunch introduces you to Mercury, Wise Business, or Relay for a business bank account, though approval is each bank's own decision.
- On Run or Scale, your annual state report and IRS filings, including Form 5472 and the pro forma 1120, are handled as part of your plan.
If PowerLaunch makes a formation error, it is corrected at PowerLaunch's cost and that portion of your fee is refunded. State fees themselves are never refundable.
What to do next
If South Carolina fits your situation, start at powerlaunch.solutions/signup and pick the plan that matches how much ongoing support you want. If you are still deciding between South Carolina, Wyoming, and Delaware, book a free 20-minute consultation at powerlaunch.solutions/book and talk it through before you file.
