South Carolina S Corp
If you’ve started a South Carolina corporation or limited liability company (LLC), you’ve already dealt with a lot of paperwork and rules. You registered your business, likely wrote a business plan, and may have an operating agreement in place. It probably seemed hard at first, but you figured it out. Congratulations! Now you’ve been in business for nearly a year in South Carolina, and you’re ready to file your annual report.
All South Carolina S corporations and C corporations must file an annual report as part of their taxes. Most South Carolina LLCs do not have to file an annual report unless they file taxes as a C corporation.
Your South Carolina annual report is part of your state corporate income tax, so you may need to consult with a tax advisor before you file your return as a whole. However, the annual report itself is relatively straightforward. This article covers the various aspects of the South Carolina annual report.
What is a South Carolina annual report?
The South Carolina annual report is a signal to the government and the public that your business is still operating. It tells the state who is in charge at your corporation and the valuation of your assets. Filing on time will keep your business in good standing.
Although your corporation is registered with the South Carolina Secretary of State, the annual report is actually part of your annual corporate tax return. As long as you file your taxes on time with the South Carolina Department of Revenue (SCDOR), you will also file your annual report on time.
South Carolina Annual Report for Corporations vs LLCs
Per South Carolina statute, a South Carolina C or S corporation must file an annual report along with its taxes containing certain information about the company’s location, ownership, assets, and business operations. There are a few exceptions for certain types of businesses such as non-profits, cooperatives, and homeowner associations.
A South Carolina LLC, on the other hand, has no requirement to file an annual report unless it is taxed as a C corporation. If your income from your South Carolina LLC is taxed as part of your personal income and you don’t have to file a separate return for the company, then you don’t have to file an annual report.
You can’t use your annual report to make changes to your company’s name, address, registered agent, or other information in the Articles of Incorporation. For this you need to file Form 33-10-106, Articles of Amendment. The filing fee is $110.
Where do I file my South Carolina annual report?
In many states, annual reports represent a function of the office of the secretary of state. South Carolina is rather unusual in that the annual report is part of your corporate tax return, Schedule D of Form SC1120 for a C corporation or Form SC1120S for an S corporation.
You can file your South Carolina annual report along with your corporate tax return online through the department of revenue’s self-service portal, MyDORWAY.
The South Carolina Department of Revenue (SCDOR) will also accept filings from a number of free tax software programs. The list includes:
- TaxSlayer
- IRS Free File by H&R Block
- IRS Free File by TurboTax
- FreeTaxUSA
- OnLine Taxes (OLT)
- TaxACT
- 1040Now
You must access these programs from the SCDOR’s official list to avoid additional charges.
You may also print and mail your return. If you are expecting a refund, mail to:
South Carolina Department of Revenue
Corporate Refund
P.O. Box 125
Columbia, SC 29214-0032
If you are sending a payment, mail to:
South Carolina Department of Revenue
Corporate Tax
PO Box 100151
Columbia, SC 29202
Make checks payable to “South Carolina Department of Revenue” and include your federal employer ID number (EIN) on the memo line.
You can contact the SCDOR by phone at (844) 898-8542, by fax at (803) 896-1682, or by email at CorpTax@dor.sc.gov. However, the SCDOR will not give tax advice. Also, they won’t process returns sent by fax or email.
When is the South Carolina annual report due?
The due date is the same as when your taxes are due. For a C corporation, this is the 15th day of the fourth month after the end of the tax year. If your tax year is the calendar year, for example, then your taxes and annual report are due on April 15.
For an S corporation, the deadline is the 15th day of the third month after the end of the tax year. If, for example, your tax year ends March 30, then your taxes and annual report are due on June 15.
How much does the South Carolina annual report cost?
Annual report fees in South Carolina are paid via licensing fees and income tax. Both S and C corporations must pay a licensing fee of $15 plus 0.1% of capital, and cannot be lower than $25. C corporations must pay 5% of taxable income. If you owe more than $15,000, you must file electronically.
What information do I need to file the annual report?
A South Carolina C corporation must provide:
- The name of the corporation
- The state or country under whose law it’s incorporated
- The company’s registered South Carolina address and registered agent
- Location of principal office
- Nature of primary business in South Carolina
- Number of authorized shares, itemized by class and series
- Number of outstanding shares, itemized by class and series
- Names and business addresses of corporate officers and directors
- Date of incorporation
- Date the business began operation in South Carolina
- FEIN (federal employer ID number)
- Name changes, if any
- Name and address of the entity with charge of the company’s books
- Total amount of stated capital per balance sheet
A South Carolina S corporation must provide all the above information, plus:
- Corporate address
- South Carolina filing number
A South Carolina LLC does not need to file an annual report unless it is formed as a C corporation.
What happens after you file your annual report?
The SCDOR will accept your tax payment and verify your annual report along with the other information in your return. If there are no issues, your report will become public information. Others will have access to your company’s data through South Carolina’s Business Entity Online search utility. Unless you have other reports to file, you’ll be free to focus on your business for another year.
What if you miss the deadline to file your report?
Any company that doesn’t file its annual report by the due date faces administrative dissolution. You will receive a notice from the state indicating that your corporation is no longer in good standing, and that you have 60 days from the receipt of notice to remedy this. If the 60 days pass with no action, the state will dissolve your business entity. This means that you will lose the special liability protections and tax status that come with your corporation.
You can reinstate a dissolved company for a non-refundable fee of $60. You can’t do this online. You must print your reinstatement request and mail it with a check covering the $60 fee to:
South Carolina Department of Revenue
Tax Compliance Office
P.O. Box 125
Columbia, SC 29214-0785
After you file your reinstatement request, the state may assess additional taxes or fines that you must pay before you can start operation again.
If you know ahead of time that you’re going to be late, you can file for an extension. You’ll get an additional three months to file your annual report. This won’t change the due date for any taxes or fees you owe, but you’ll avoid administrative dissolution.
Who do I contact if I have issues filing my South Carolina annual report?
You’ll find many answers on the South Carolina Department of Revenue’s corporate FAQ page. You can also contact the SCDOR by phone, by fax, or by email.
Filing Your South Carolina Annual Report FAQs
- Do LLCs have to file an annual report in South Carolina?
LLCs in South Carolina don’t have to file an annual report unless they are required to file taxes as a C corporation.
- How much does it cost to file an annual report in South Carolina?
There’s no single fee associated with the annual report itself. You pay as part of your corporate taxes. Both S and C corporations must pay a licensing fee of $15 plus 0.1% of capital. In addition to this, C corporations must pay 5% of taxable income.
- What happens if I file my annual report late in South Carolina?
If you miss the deadline, the state will begin administrative dissolution procedures. However, you can file in advance for an extension of three months.
- What happens if I don’t file my annual report at all in South Carolina?
If you file your corporate tax return on time but leave the annual report portion (Schedule D) blank, the state will treat it the same as if you didn’t pay your taxes. South Carolina will begin administrative dissolution procedures against your company.
- Can I reinstate an administratively dissolved company in South Carolina?
Yes, you can reinstate a dissolved business in South Carolina for a fee of $60 plus any additional taxes and penalties the state may designate. Once your business is reinstated, the change will be retroactive, meaning there’s no gap in your corporate status.
- Can I use the South Carolina annual report to update information about my business?
You can’t use the annual report to update information that would be in your Articles of Incorporation (e.g., business name, address, and registered agent). You’ll need to file Articles of Amendment with the South Carolina Secretary of State. The fee is $110.
- When is my South Carolina annual report due?
Your annual report is due the same date as your taxes. For an S corporation, it’s on the 15th of the third month after the end of your tax year. For a C corporation, it’s the 15th of the fourth month after the end of your tax year.
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