How to start a business in South Carolina

Ten steps, in the order that saves you rework. Most owners in the Charleston area can be legally open in a couple of weeks, and the state filing for an LLC is $110.

Checked against official sources on November 6, 2026.

LLC filing fee: $110 state fee, plus possible online service fees
Corporation filing: $135 ($110 Articles + $25 initial annual report)
EIN: Free from the IRS, issued immediately online
SC retail license: $50 per location, one time
Local license due: April 30 each year in most of SC

The steps

Pick a structure. Sole proprietorship, partnership, LLC or corporation. The short version: an LLC limits your personal liability for the business's debts and costs $110 to form; it does not change your federal taxes by default. See LLC vs sole proprietorship vs corporation.
Check the name. Search the SC Secretary of State business name database. The state will not accept a name that matches one already on file, and you do not need to reserve a name before you form.
Decide on a DBA, if you want one. South Carolina has no state DBA registry. You record a trade name on your local business license, list it as the trade name on your EIN application, and check with your county. Only limited partnerships and foreign corporations file assumed names with the state.
Name a registered agent. An LLC must keep an agent with a street address in South Carolina: you, another SC resident, or a company authorized to do it. The agent signs the formation form.
File with the SC Secretary of State. LLCs file Articles of Organization ($110). Corporations file Articles of Incorporation plus the CL-1 initial annual report ($135 total); the form includes a certification by a South Carolina-licensed attorney. Sole proprietors don't file with the state. File online at businessfilings.sc.gov, by mail, or in person.
Get an EIN from the IRS. It is free at irs.gov and issued on the spot online. Form the LLC or corporation first. Sole proprietors can use their Social Security number, but an EIN makes opening a business bank account easier.
Register with SCDOR. One application on MyDORWAY covers the $50 retail license (if you sell anything at retail, online included), sales tax, and withholding. Processing can take up to 5 business days. Sales tax is 6% statewide plus local taxes; returns are monthly by default and due the 20th, even in a month with no sales.
Get your local business license. South Carolina has no statewide business license, but almost every city and county requires one. Charleston, North Charleston and Mount Pleasant each run their own. See Charleston-area business licenses.
Get any industry license. Barbers, cosmetologists, contractors, residential builders and real estate agents, among others, are licensed by a board at SC LLR. Apply with that board directly.
Set up banking, insurance and hiring. Open a separate business account. If you'll have employees, register for withholding and unemployment insurance before the first payroll. See hiring your first employee in SC.

Common questions

How much does it cost to start an LLC in South Carolina?

The Articles of Organization filing fee is $110, plus any online service fees at checkout. An LLC that is not taxed as a corporation has no state annual report or annual fee afterward.

Do I need an LLC to start a business in South Carolina?

No. A sole proprietor doesn't register with the Secretary of State at all. An LLC adds protection for your personal assets from the business's debts; it doesn't change your federal taxes unless you elect to be taxed as a corporation.

Do I need a business license in Charleston?

Yes, if you operate or earn income inside City of Charleston limits. North Charleston, Mount Pleasant and other towns require their own. Licenses in most of South Carolina expire April 30 each year.

How do I register a DBA in South Carolina?

There is no state DBA filing. Put the trade name on your local business license and on your EIN application, and check with your county.

Is an EIN free?

Yes. The IRS issues EINs for free on irs.gov. Sites that charge for one are third parties, not the IRS.

Do I need a sales tax license in South Carolina?

If you make retail sales, including online, you need a $50 retail license from SCDOR for each location. It doesn't expire as long as the same owner stays at the same location.