Incorporation in South Carolina reflects the state’s business culture: detailed, realistic, and built for longevity. Every filing must carry an attorney’s certification of compliance, a safeguard that helps prevent errors from the start. Form CL-1, the initial annual report, links each new corporation directly to the Department of Revenue. This is a system where laws, taxes, and governance are aligned from Day 1.

Below, we’ll explain how to incorporate in South Carolina, including what it costs, what advantages it offers, and the specific steps to build a corporation that’s durable, compliant, and ready for growth.

What’s in this article?

• What does it mean to incorporate a business in South Carolina?
  
• What are the advantages of forming a corporation in South Carolina?
  
• What are the steps to incorporate your business in South Carolina?
  
• How much does it cost to incorporate in South Carolina?
  
• How Stripe Atlas can help
  

What does it mean to incorporate a business in South Carolina?

Incorporating in South Carolina means creating a business that legally stands on its own as a corporation, separate from its owners, with its own rights and obligations under Title 33 of the South Carolina Code of Laws. This separation limits the personal liability of shareholders and protects their individual assets from business debts or lawsuits.

Incorporation in the Palmetto State offers fast online processing, low filing costs, and stable, investor-friendly governance rules. Title 33 supports multiple structures—professional, close, benefit, and nonprofit corporations—and allows flexible bylaws that can be customized to each organization’s needs.

Once you file your articles of incorporation with the secretary of state, your company comes into existence as a distinct legal entity that can own property, enter contracts, and be held liable in its own name. At this point, you’ll need to hold an organizational meeting, adopt bylaws, and appoint initial directors to formally activate corporate operations.

What are the advantages of forming a corporation in South Carolina?

Incorporating in South Carolina minimizes friction, keeps filings simple, and ties your legal and tax responsibilities together from the start.

Here are some of the advantages of forming your corporation in South Carolina.

Early legal oversight

Every corporation must include an attorney’s certification in its articles, which means an attorney licensed in South Carolina must review them and sign off before you can file. This gives investors and lenders confidence that the corporation was properly formed under Title 33.

Simple filing

Multiple filings happen at the same time, speeding up the overall process. Form CL-1 (i.e., Initial Annual Report of Corporations) and the initial license fee can be submitted with your articles of incorporation.

Low recurring costs

South Carolina’s flat 5% corporate income tax is among the lowest in the region, and the single-factor sales apportionment is especially useful for companies that sell tangible personal property. The annual license fee is $25 at minimum or 0.1% of paid-in capital plus $15, whichever is greater.

A practical legal environment

South Carolina’s Business Court handles complex corporate cases statewide. Its judges specialize in commercial law so they’re able to provide consistent decisions that give companies clear expectations in disputes.

What are the steps to incorporate your business in South Carolina?

South Carolina’s incorporation process is orderly, transparent, and relatively quick. The system syncs your legal, tax, and governance structures from the start.

Here are the steps you’ll need to follow.

Choose a corporate name that meets state rules

Your business name must be distinguishable from all others registered with the South Carolina secretary of state, and it must include a designator such as “Corporation,” “Incorporated,” “Company,” or a standard abbreviation such as “Inc.” or “Co.” The state’s database lets you verify name availability instantly. You can reserve a name for 120 days for $10, but founders can start filing once the name clears.

Identify incorporators and directors

You need at least one incorporator to sign and submit the articles of incorporation and at least one director to perform the duties set forth in the bylaws after formation. These individuals aren’t required to live in South Carolina.

Appoint a registered agent

Every corporation must designate a registered agent: a person or business physically located in South Carolina that can accept service of process and official mail. The address must be a real street address (no PO Boxes). If you operate remotely or from another state, you can hire a registered agent service.

Prepare the articles of incorporation

This document legally creates your corporation. The articles must include:

• The corporation’s name

• The number and class of authorized shares

• The name and address of each incorporator

• The registered agent’s name and address

You might also include optional provisions such as the names of the initial directors and the business purpose.

An attorney who’s licensed in South Carolina must sign your articles to confirm the filing complies with all state laws. The secretary of state can reject any submission that’s missing this certification.

File the articles and Form CL-1

You can file online through the South Carolina Business One Stop portal or by mail. Form CL-1 is required of every business corporation. Filing a business income tax return automatically registers you with the Department of Revenue and ensures your tax account is active.

Online articles filings are typically processed within one day, with digital confirmation and a downloadable certificate of existence, while mailed filings usually take a few business days once they’re received. Once your filing is accepted, your corporation is officially formed under state law and will appear in the secretary of state’s searchable database.

Hold the organizational meeting

Once the certificate of existence is in hand, the incorporator or initial directors hold an organizational meeting to formally establish the company’s structure.

At that meeting, you should:

• Adopt corporate bylaws to define governance, officer roles, and voting procedures

• Elect or confirm the board of directors (if it’s not already listed in the articles)

• Appoint officers (typically a president, secretary, and treasurer)

• Authorize the issuance of shares to shareholders in exchange for capital contributions

• Approve a fiscal year and authorize the opening of bank accounts

Document these actions in written minutes and keep them with your permanent corporate records.

Register locally and stay compliant

South Carolina doesn’t have a statewide business license requirement, but some cities and counties do. Apply directly through the local government where your corporation operates.

Do the following for state-level compliance:

• File and pay the annual license fee with your corporate income tax return—Form SC 1120 for C corporations (C corps)—each year.

• Keep your registered agent information current with the secretary of state.

• Retain all corporate records (bylaws, minutes, and share ledger) in your principal office as required by Title 33.

By default, every South Carolina corporation is a C corp for tax purposes. If you prefer pass-through taxation and your corporation qualifies, file Internal Revenue Service (IRS) Form 2553 to elect S corporation (S corp) status. South Carolina recognizes the federal S corp election automatically so a separate state filing isn’t required.

How much does it cost to incorporate in South Carolina?

Forming a corporation in South Carolina costs $135 up front: $110 to file the articles of incorporation and $25 for the license fee.

After the first year, C corps need to pay an annual license fee of 0.1% of capital and paid-in surplus, plus $15. The minimum fee is $25. The formula is fixed so you can calculate it precisely: for instance, $50,000 in capital and paid-in surplus would result in a $65 fee.

You might also need to pay an attorney licensed in South Carolina to sign your articles.

Finally, you might choose to pay for a commercial registered agent service, if you don’t want to serve as your own.

South Carolina doesn’t require businesses to file annual reports with the secretary of state. Aside from the license fee and routine tax filings, there are no other recurring state charges.

With defined filings, one integrated tax link, and simple procedures, incorporation in South Carolina can take your business from an idea to a legal entity—one that’s able to withstand investors’ due diligence or future regulatory review—in a matter of days.

How Stripe Atlas can help

Stripe Atlas sets up your company’s legal foundations so you can fundraise, open a bank account, and accept payments within two business days from anywhere in the world.

Join 75K+ companies incorporated using Atlas, including startups backed by top investors like Y Combinator, a16z, and General Catalyst.

Applying to Atlas

Applying to form a company with Atlas takes less than 10 minutes. You’ll choose your company structure, instantly confirm whether your company name is available, and add up to four cofounders. You’ll also decide how to split equity, reserve a pool of equity for future investors and employees, appoint officers, and then e-sign all your documents. Any cofounders will receive emails inviting them to e-sign their documents, too.

Accepting payments and banking before your EIN arrives

After forming your company, Atlas files for your Employer Identification Number (EIN). Founders with a US Social Security number, address, and cell phone number are eligible for IRS expedited processing, while others will receive standard processing, which can take a little longer. Additionally, Atlas enables pre-EIN payments and banking, so you can start accepting payments and making transactions before your EIN arrives.

Cashless founder stock purchase

Founders can purchase initial shares using their intellectual property (e.g., copyrights or patents) instead of cash, with proof of purchase stored in your Atlas Dashboard. Your IP must be valued at $100 or less to use this feature; if you own IP above that value, consult a lawyer before proceeding.

Automatic 83(b) tax election filing

Founders can file an 83(b) tax election to reduce personal income taxes. Atlas will file it for you—whether you are a US or non-US founder—with USPS Certified Mail and tracking. You’ll receive a signed 83(b) election and proof of filing directly in your Stripe Dashboard.

World-class company legal documents

Atlas provides all the legal documents you need to start running your company. Atlas C corp documents are built in collaboration with Cooley, one of the world’s leading venture capital law firms. These documents are designed to help you fundraise immediately and ensure your company is legally protected, covering aspects like ownership structure, equity distribution, and tax compliance.

A free year of Stripe Payments, plus $50K in partner credits and discounts

Atlas collaborates with top-tier partners to give founders exclusive discounts and credits. These include discounts on essential tools for engineering, tax, finance, compliance, and operations from industry leaders like AWS, Carta, and Perplexity. We also provide you with your required Delaware registered agent for free in your first year. Plus, as an Atlas user, you’ll access additional Stripe benefits, including up to a year of free payment processing for up to $100K in payment volume.

Learn more about how Atlas can help you set up your new business quickly and easily, or get started today.