(*Special formula)​

Mail returns with a balance due to:
South Carolina Department of Revenue
Corporate Tax
PO Box 100151
Columbia, SC 29202

Mail returns with a zero tax or refund to:
​​South Carolina Department of Revenue
Corporate Refund
PO Box 125
Columbia, SC 29214-0032

What if my corporation is administratively dissolved?

You will need to submit a Certificate of Tax Compliance Request​ (C-268) along with the $60 non-refundable fee. We recommend submitting the C-268 and its fee electronic​​ally on MyDORWAY​, or you can submit the C-268 form by mail, email, or fax. See below for instructions:

Submit a Certificate of Tax Compliance Request​​​ and fee on MYDORWAY:
​​MyDORWAY​ is the fastest and securest way for sending your request and payment. Do not mail the C-268 form and $60 non-refundable fee if you use this method.	Sign in to your existing MyDORWAY account or create a new account to get started: Once signed in, select the More tab, then click Make a Certificate of Compliance Request. Submit your request and $60 fee online.
Choose ONE option from the left column for submitting the C-268 form. Fees must be paid by mailing a paper check:
Mail the C-268 paper form and check to: South Carolina Department of Revenue Tax Compliance Office 300A Outlet Pointe Blvd. Columbia, SC 29210 ​(See check instructions to the right.) OR Email the C-268 form to COCRequests@dor.sc.gov and make your payment using the check instructions to the right. ​ OR Fax the C-268 to ​803-896-0151 and make your payment using the check instructions to the right.	Mail your check to: South Carolina Department of Revenue Tax Compliance Office 300A Outlet Pointe Blvd. Columbia, SC 29210 DO NOT SEND CASH Make your check payable to: SCDOR Include the following in the memo: C-268, the taxpayer’s name, and the FEIN

Upon receipt of the C-268, a review of all tax types for which your corporation is responsible will be conducted. The corporation will be immediately notified of any delinquencies and has thirty days to comply. When the delinquencies are cleared, the corporation will be issued a Certificate of Tax Compliance.

How do I reinstate with the South Carolina Secretary of State (SCSOS)?

Once the corporation receives the Certificate of Tax Compliance, it is required to file an Application for Reinstatement of a Corporation Dissolved by Administrative Action with the SCSOS. For more information about this form, visit the SCSOS website.

If I register my corporation with the South Carolina Secretary of State (SCSOS) but do not start operating my business until the following year, am I required to file a return?

Yes. If you are a new corporation and you incorporated in the middle of an accounting period, you will be required to file a short period return. Example – You incorporated with the SCSOS November 1 and your accounting period is December 31. You will need to file a short period return for November 1 through December 31.

Do I need to file a short period return if I am changing my accounting period?

Yes. In order to change your accounting period, you may be required to file a short period tax return.

Example – If you are changing from a May filer to a December filer, you will be required to file a short period return from June 1 to December 31.  Each part of a month is considered a full month for purposes of prorating the License Fee.  (The License Fee is not computed based on the number of days in a short period.) Check the Change of Accounting Period box on the front of the return.

See SC Revenue Ruling #05-11 and SC Code Section 12-20-80(A) for more information on the License Fee proration.

What is the Corporate Tax rate?

The starting point in determining South Carolina taxable income is the corporation's federal taxable income. There are different tax rates for certain organizations. If you are filing:

Tax Type	Form	Tax Rate
​Bank	SC 1101-B	4.5%
C Corporation	SC 1120	5%
S Corporation	SC 1120-S	5%
Exempt Organization	SC 990-T	5%
Public Utility	​​SC 1120-U	5%
Savings and Loan Assn	SC1104	​6%

How do I request a copy of a Corporate Tax return previously filed with the SCDOR?

To request a copy of a prior year return, complete an SC4506. You may choose to have copies of your prior year returns mailed or emailed to you. Allow 30 days to receive mailed copies. Social Security Numbers and Federal Employer Identification Numbers will be partially redacted from all copies.

If you used a paid preparer to file your return, your preparer should have a copy of your return.

How can I claim tax withheld on my Corporate Income Tax return?

To claim tax withheld on your behalf, attach supporting 1099s or I-290s. SCDOR does not accept South Carolina Schedule K-1, Partner Information (SC1065), or Settlement Statements as proof of withholding. If you are a fiscal year taxpayer, include a schedule of amounts withheld on a monthly basis. See SC Code Sections 12-8-590(D) and 12-8-1540(A).

How can I obtain a Certificate of Compliance for a corporation?

You must complete a C-268, Certificate of Tax Compliance Request Form, and pay the $60 nonrefundable fee. For corporations, generally the request can be signed by an officer having legal authority to bind the corporation, or a person designated by the board of directors or other governing body.

Submit a Certificate of Tax Compliance Request​​​ and fee on MYDORWAY:
​​MyDORWAY​ is the fastest and securest way for sending your request and payment. Do not mail the C-268 form and $60 non-refundable fee if you use this method.	Sign in to your existing MyDORWAY account or create a new account to get started: Once signed in, select the More tab, then click Make a Certificate of Compliance Request. Submit your request and $60 fee online.
Choose ONE option from the left column for submitting the C-268 form. Fees must be paid by mailing a paper check:
Mail the C-268 paper form and check to: South Carolina Department of Revenue Tax Compliance Office 300A Outlet Pointe Blvd. Columbia, SC 29210 ​(See check instructions to the right.) OR Email the C-268 form to COCRequests@dor.sc.gov and make your payment using the check instructions to the right. ​ OR Fax the C-268 to ​803-896-0151 and make your payment using the check instructions to the right.	​Mail your check to: South Carolina Department of Revenue Tax Compliance Office 300A Outlet Pointe Blvd. Columbia, SC 29210 DO NOT SEND CASH Make your check payable to: SCDOR Include the following in the memo: C-268, the taxpayer’s name, and the FEIN

Does South Carolina allow loss carrybacks or loss carry forwards on Corporate Income Tax?

Net operating loss (NOL) carrybacks are not allowed. Only carry forwards are allowed.

Is there a limited amount of Net Operating Loss (NOL) that a corporation can use to carry forward to the next tax year?

No, there is not a limited amount or percentage a corporation can carry forward to the next tax year.

How do I file an amended return?

To amend a Corporate Income Tax return, complete a new form and check the Amended Return box on the front of the return. Attach to the amended return an explanation of the adjustment, a copy of the original return filed, and a copy of the federal 1120X. If a copy of the original return is not provided, the amended return cannot be processed. The amended return must be submitted within 36 months from the date the original return was filed or due to be filed, whichever is later as required by SC Code Section 12-54-85.

How much time do I have to file an amended return to the SCDOR once the IRS completes an audit of the corporation?

Once the IRS completes an audit, the corporation has 180 days to file an amended return with the SCDOR. Include the IRS 4549 and 870, with the amended return, along with the 1574 letter, if available.

How do I report a change of address for a corporation?

Report your address change using one of the following: 

• Include the new address when filing the Corporate Tax Return. Check the Change of Address box on the front of the tax return.
• Save time and paper by updating your information on MyDORWAY after signing into your existing account, or create an account to get started. If you’re not making your request through MyDORWAY, email the SC8822B​, Change of Address for Businesses, with any required documents to Registrationfortaxes@dor.sc.gov. 

Should the SCDOR be notified of changes in officers?

Yes. This information should be updated each year on the annual report (Schedule D) when filing your Corporate Tax return. Check the Change of Officers box on the front of the tax return.

What is a composite return?

A composite return is a single return filed by a partnership, S Corporation, or Limited Liability Company (LLC) taxed as a partnership or S Corporation on behalf of two or more nonresident participants.

A composite return allows S Corporations or Partnerships to compute and report the SC income and tax attributable to electing nonresident shareholders or partners on a single tax return (SC1040 Individual Income Tax Return). Participants are limited to individuals, trusts or estates who are partners of the Partnership, shareholders of the S Corporation or members of an LLC taxed as an S Corporation or Partnership.

A composite return is filed using an SC1040 SC Individual Income Tax Return. The heading states the name, address, and FEIN of the Partnership, S Corporation or LLC. Do not use "Composite Return for" or "Shareholders/Partners of" in the name. Mark the box for filing a Composite Return. Mark Single filing status.

NOTE: Corporate partners and members may not participate in composite returns.

How is a composite return completed?

A partnership, S Corporation, or LLC taxed as a Partnership or S Corporation computes the tax separately on each participant's share of income.  The methods available for computing the tax depend on whether the partner, shareholder, or member has filed an I-338 Composite Return Affidavit with the SCDOR through the Partnership, S Corporation, or LLC. An I-338 affidavit states that the partner, shareholder, or member has no other income taxable to South Carolina. The tax amounts computed for each participant in the composite return are added together to arrive at the total tax due.

Refer to the I-338 and the I-348 for more information.

See SC Code Section 12-6-5030 and SC Revenue Procedure 17-2.

How do I request an extension of time to file a composite return?

File the ​SC4868 to extend the time to file a composite return. Do not use the SC1120T or the federal form 7004. Extending the time to file a composite return does not extend the time to file the South Carolina S corporation (SC1120S) or partnership (SC1065) return.

Any tax estimated to be due must be paid with the timely filed extension.

Request your extension to file by paying your balance due on our free tax portal, MyDORWAY, at dor.sc.gov/pay. Select Individual Income Tax Payment to get started. Your payment on MyDORWAY automatically submits your filing extension request. No additional form or paperwork is required. If filing the SC4868 by paper, mark the Composite Filer box and mail the original with payment, if any.

See SC Revenue Procedure 17-2.

What are the filing requirements for consolidated returns?

A consolidated return may be filed on behalf of:

• a parent and one or more substantially controlled subsidiaries, or
• two or more corporations under substantially the entire control of the same interest.

Substantial control means ownership by one corporation of 80% or more of the total combined voting power of all classes of stock of the other corporations. Check the Consolidated Return box on SC1120 and complete Schedule J and Schedule M.

All corporations included in a consolidated return or combined return must use the same accounting year. An election to file a consolidated return must be made on an original, timely filed return. The election to file a consolidated return may not be changed after the return is filed. A multi-state corporation must compute and use a separate apportionment ratio in arriving at the SC taxable income and License Fee for each entity included in the consolidation.

S Corporations, Savings and Loans, and Banks are unable to participate in a consolidated return.

If I am filing a consolidated return, do I need to file an extension for each entity?

No. Corporations filing a consolidated return should file a single South Carolina extension. There is no extension for payment of Corporate Income Tax or License Fee. Any Income Tax or License Fee due must be paid by the prescribed due date to avoid the assessment of late penalties and interest. File the extension using the FEIN and name of the entity that will be filing the Corporate Tax return.

Can S Corporations, Savings & Loans, or Banks participate in a consolidated return?

No. S Corporations, Savings and Loans, and Banks are unable to participate in a consolidated return.

Why do I need to complete a Schedule L?

Schedule L is used for disregarded Limited Liability Companies (LLCs) and Qualified Subchapter S Subsidiaries (Q-Subs) included in the Corporate Tax return doing business in South Carolina. Companies doing business in South Carolina may receive a Failure to File notice if they are not included on the Schedule L.

Why do I need to complete a Schedule M?

A consolidated return must include the income allocated to South Carolina and the calculation of a separate License Fee for the parent and each subsidiary. A separate annual report and profit-and-loss statement are also required using each member's own apportionment ratio.

The Schedule M is in 3 parts:

• Part 1 is used to provide general information regarding your consolidated return. The name of each subsidiary and the FEIN must be included. ONLY include the corporations doing business in South Carolina. Companies doing business in South Carolina may receive a Failure to File notice if they are not included on the Schedule M.
• Part 2 is the Income Tax information for the parent and each subsidiary.
• Part 3 is the License Fee, allocation, and apportionment information.

Can a corporation amend a consolidated return to include a subsidiary that was not included in the original consolidated return?

No.  A corporation cannot file an amended consolidated return to include a corporation that was not included in the original return. The election to be included in a consolidated return must be made on the timely filed original return.

Do the subsidiaries each need to file a CL-1?

Yes.

What is the Electronic Mandate?

If you owe $15,000 or more in connection with any SCDOR return, you must file and pay electronically according to SC Code Section 12-54-​250.

Once I meet the Electronic Mandate requirement for any SCDOR return am I required to file and pay electronically for any future tax returns with the SCDOR?​

Yes.

Am I penalized if I do not file and pay electronically?

Yes. Penalty and interest will be applied as permitted by law. A penalty of $500 per period will be assessed until you start filing and paying electronically.

What are my options for filing and paying electronically?

Visit dor.sc.gov/biz-services for a list of electronic services.

What is the due date for a declaration payment?

When submitting a declaration payment, indicate the income accounting period end on the SC1120-CDP form – not the quarter end.

Due Dates:

Income Tax Period Ending	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
​January 31	May 15	July 15	October 15	January 15
February 28	June 15	August 15	November 15	February 15
March 30	July 15	September 15	December 15	March 15
April 30	August 15	October 15	January 15	April 15
May 31	September 15	November 15	February 15	May 15
June 30	October 15	December 15	March 15	June 15
July 31	November 15	January 15	April 15	July 15
August 31	December 15	February 15	May 15	August 15
September 30	January 15	March 15	June 15	September 15
October 31	February 15	April 15	July 15	October 15
November 30	March 15	May 15	August 15	November 15
December 31	April 15	June 15	September 15	December 15

What form do I use to request a corporate extension of time to file?

Use the SC1120T to request an extension of time to file a Corporate Tax return.

Save time and paper! Request your extension to file by paying your balance due on our free tax portal, MyDORWAY. Select Business Income Tax Payment to get started. Your payment on MyDORWAY automatically submits your filing extension request. No additional form or paperwork is required.

An extension of time for filing does not extend the time for paying Corporate Income Tax or License Fee. Underpayment penalties and interest will apply if 90% of the Income Tax and License Fee is not paid by the original due date of the return.

When filing your Corporate Tax Return, check the Extension box to indicate you filed a federal or state extension. 

Can I file an extension for paying my taxes?​

No. An extension of time for filing does not extend the time for paying Corporate Income Tax or License Fee. Underpayment penalties and interest will apply if 90% of the Income Tax and License Fee is not paid by the original due date of the return.​

Will a federal extension be accepted to extend the South Carolina Corporate Tax Return?

Yes. The federal extension will be accepted as a South Carolina extension if the corporate return is received within the time as extended by the IRS.

Can I file my Corporate Tax return and pay my balance due online?

Yes. Taxpayers can file their South Carolina 1120/1120S (along with their federal Corporate Tax Returns) electronically in a single transmission using third party tax preparation software. Visit dor.sc.gov/biz-services for more information on developers that support corporate electronic filing.

Corporations can pay Income Tax, Estimated Income Tax, and License Fee payments online using our free tax portal, MyDORWAY. Select Business Income Tax Payment to get started.

Corporations can also pay Income Tax, Estimated Income Tax, and License Fee payments electronically through Electronic Funds Transfer (EFT). To get started, the company must register with the SCDOR. For questions regarding EFT, please contact BusinessEFT@dor.sc.gov​.Your FEIN (Federal Employer Identification Number) is required to ensure proper credit of returns filed and payments submitted.  Providing an incorrect FEIN will result in processing delays and errors in posting the return and payments.

What Corporate Tax payments can I make online?

Use our free online tax portal, MyDORWAY, to:

• Pay your Corporate Income Tax and License Fee (SC1120-V Return Payment)
• Request your extension of time to file by paying your balance online (SC1120-T Extension Tentative Payment). Your payment on MyDORWAY automatically submits your filing extension request. No additional form or paperwork is required.
• Pay quarterly Estimated Tax (SC1120-CDP Estimated Declaration Payment)

Visit dor.sc.gov/pay and select Business Income Tax Payment to get started. If you make your payment online, no additional form or paperwork is required.

Do I need to file an Initial Annual Report (CL-1)?

Yes. You must submit the CL-1 and a $25 License Fee to the Secretary of State (SCSOS) if you are a domestic corporation filing your initial Articles of Incorporation or a foreign corporation filing an Application for Certificate of Authority to Transact Business in South Carolina. Make all payments payable to the SCSOS. The SCSOS cannot process a CL-1 that is not accompanied by Articles of Incorporation or an Application for Certificate of Authority to Transact Business.

If you have not already submitted a CL-1 and $25 License Fee to the SCSOS, mail the CL-1 to the SCDOR within 60 days after commencing business in South Carolina or using a portion of total capital in the state. Make your check payable to the SCDOR and mail to:

SCDOR
License & Registration
PO Box 125
Columbia, SC 29214-0850.

The $25 License Fee must be paid at the time the CL-1 is filed.

Interest is due at the prevailing federal interest rate if this return is not filed within 60 days after commencing business in South Carolina.

If you file the return late, you will receive a penalty of 5% per month, not to exceed 25%. If you pay the License Fee late, you will receive a penalty of 0.5% per month, not to exceed 25%.

What are the filing requirements for insurance agencies?

Insurance agencies file their South Carolina Income Tax return with the SCDOR.

Am I still required to file a tax return if I did not have any income to report?

Yes. If your corporation is dormant or you do not have any income or business to report in an accounting period, you are still required to file a Corporate Tax return, including the annual report (Schedule D; which is part of the Corporate Tax return) and pay any tax or License Fee due each year by the due date of your return. There is a minimum $25 License Fee due annually.

If you do not have any income or business activity, a South Carolina Corporate Tax Return is still required to be filed from the date the charter/authority is granted with the South Carolina Secretary of State (SCSOS) through the date of voluntary dissolution/withdrawal recorded with the SCSOS.

If you have discontinued your business, it is necessary to file the dissolution papers (domestic corporations) or withdrawal documents (foreign corporations) with the SCSOS.

A short period return will be required if the corporation registers before the fifteenth day of the month. Other reasons for a short period return include: new corporation filing, accounting period change, or for a corporation that has dissolved.

Failure to file all returns can result in your account being forfeited by the SCSOS.

When do I file a final return?

If you dissolved or withdrew your charter with the SCSOS after your accounting period has ended, you must file a final return.

Example: If you closed your business March 15 and your accounting period is December, you must file a short period return from January 1 through March 15. A License Fee is not generally required on final returns since the License Fee is paid a year in advance. See SC Code Section 12-20-80.

How do I close my corporate account with the SCDOR?

Instructions for dissolution, merging, or authorization for withdrawal are available from the SCSOS online or at 803-734-2158.

If you have discontinued your business, the SCDOR will close your corporate account. File a final Corporate Tax return with an Income Tax period end matching the stamped recorded dissolution date received from the SCSOS. A domestic corporation remains in business until it closes its account with the SCSOS, and a foreign corporation may not withdraw from the State until it obtains a certificate of withdrawal from the SCSOS. See SC Code Sections 33-14-103 and 33-15-200 for more information.

Check the Merged box on the return if you merged with another entity. You must file Articles of Merger with the SCSOS.

Check the Reorganized box on the return if you are reorganizing the corporation:

• If you reorganize and change your ownership type from a corporation to a limited liability company with the same FEIN, and will continue to conduct business as a corporation for tax purposes, you are still required to file a Corporate Tax return.
• If you reorganize and change from a corporation to a partnership or sole proprietorship, send a copy of your Partnership Tax Return (SC1065) or Individual Income Tax Return (SC1040) including federal Schedules C, E, or F.

Check the Final box on the return if this is the corporation's final return. A domestic corporation must file Articles of Dissolution with the SCSOS in order to close the business. A foreign corporation must file an Application for Surrender of Authority to do Business with the SCSOS in order to withdraw from South Carolina. Do not file the final return with SCDOR until the corporation has been dissolved or withdrawn with the SCSOS.  

If I file a final return, will this close my business with the SCSOS?

No. If you have discontinued your business, a final return cannot be accepted as such until the proper dissolution papers (for domestic corporations) or withdrawal documents (for foreign corporations) have been completed and filed with the SCSOS. You may contact them at 803-734-2158 for more information.

Does a homeowners’ association (HOA) file a CL-1?

Homeowners’ Associations are required to file a CL-1 but are exempt from paying the $25 fee.

Does a homeowners’ association file an annual return?

If the homeowners’ association files a Federal 1120-H with the IRS, they do not file with SCDOR unless they have taxable income to report. If they choose not to file or do not qualify for the 1120H, they are required to file an SC1120 and pay the License Fee.

What form does a homeowners' association use to report unrelated tax?

You will need to report unrelated tax on the SC1120.

What is the penalty for failure to pay?

If a corporation fails to pay any tax on or before the original due date of the return, a failure to pay penalty must be added to the tax. The penalty will be one-half of one percent of the amount of the tax if the failure is for not more than one month, with an additional one-half of one percent for each additional month or fraction thereof during which the failure continues, not exceeding twenty-five percent.

See SC Code Section 12-5​4-43(D).

What is the penalty for filing late?

A corporation that does not file its tax return by the original due date, may be penalized 5% of the unpaid tax for each month the return is late, up to a maximum of 25% of the unpaid tax.

See SC Code Section 12-54-43(C)(1).

What is the License Fee rate?

The License Fee rate is 0.1% of the corporation's capital stock and paid-in surplus plus $15. The minimum License Fee is $25.

Who is subject to the License Fee?

Generally, every domestic corporation, every foreign corporation qualified to do business in South Carolina, and any other corporation required by SC Code Section 12-6-4910 to file an Income Tax return must file an annual report and pay a License Fee to the SCDOR.

The following organizations, companies, and associations are not subject to the annual report or the License Fee:

1. A Limited Liability Company (LLC) not taxed as a corporation
2. A corporation whose only contact with South Carolina is registration with the SC Secretary of State
3. A nonprofit corporation organized under Chapter 31 (South Carolina Nonprofit Corporation Act of 1994) of Title 33 and exempt from Income Taxes under Section 501 of the Internal Revenue Code of 1986 (IRC)
4. A volunteer fire department and rescue squad
5. A cooperative organized under Title 33 of the South Carolina Code
6. A bank as defined in SC Code Section 12-11-10
7. A savings and loan association as defined in SC Code Section 12-13-10
8. An insurance company or association, including any fraternal, beneficial, or mutual protection insurance company
9. A foreign corporation whose entire income is not included in gross income for federal Income Tax purposes due to any treaty obligation of the US
10. Nonprofit corporations organized under Chapter 36 (Corporations Not for Profit Financed by Federal or State Loans) of Title 33 for the purpose of providing water supply and sewerage disposal or a combination of those services
11. A homeowners association as defined in IRC Section 528(c)(1)
12. Entities that are not organized as a corporation and are taxed under provisions of the Internal Revenue Code other than Subchapters C and S. Examples of exempt entities, if they are not organized as a corporation include:
    1. Real Estate Investment Trusts (REITs) as defined in IRC Section 856 and taxed under IRC Section 857 if organized as a trust under local law
    2. Regulated Investment Companies (RICs) as defined in IRC Section 851
    3. Real Estate Mortgage Investment Conduits (REMICs) as defined in IRC Section 860D
    4. Political Organizations as defined in IRC Section 527
13. Public Corporations, including municipalities and counties

See SC Revenue Ruling #05-11 for more information.  

When is the License Fee due to the SCDOR?

The License Fee is due to the SCDOR by the original due date of the return or request for extension. The License Fee period is one year ahead of the Income Tax period. For instance, if the Income Tax period ends December 31 of the current year, the License Fee period ends December 31 of the following year.

How do you prorate the License Fee for a short period return?

Take the original amount of the License Fee (capital x .001 + $15), divide the calculated fee by 12 and then multiply the amount by the number of months in the short period return. Each part of a month is considered a full month. (i.e., the License Fee is not computed based on the number of days in a short period.) Any prorated License Fee may not be less than $25.

When can a License Fee be prorated?

A corporation may prorate the License Fee when there is a change in accounting period and a return of less than 12 months is required. This proration applies only to short periods due to a change in accounting period and does not apply to short periods due to initial or final returns. Any prorated License Fee may not be less than $25.

Does the License Fee include retained earnings?

No.

What are the filing requirements for a Limited Liability Company?

A person may organize a domestic LLC by filing the Articles of Organization with the South Carolina Secretary of State (SCSOS). A person may qualify a foreign LLC to do business in South Carolina by filing an Application for Certificate of Authority to Transact Business with the SCSOS.

• An LLC has the option to file as a corporation (SC1120), partnership (SC1065), or individual (SC1040 with Schedule C, E, or F).
• An LLC taxed as a corporation for federal purposes is taxed as a corporation for South Carolina purposes. If it then makes a federal S election, it is also taxed as an S Corporation for South Carolina purposes.
• An LLC taxed as a corporation must complete the CL-1, Initial Annual Report of Corporations, and submit it to the SCDOR within 60 days of commencing business in South Carolina or using a portion of capital in South Carolina.
• A multiple member LLC not taxed as a corporation is taxed as a partnership.
• A single member LLC not taxed as a corporation for Income Tax purposes is not regarded as an entity separate from its owner.

Is an LLC required to file Form CL-1, Initial Annual Report of Corporations?

Yes, an LLC must file a CL-1 when they elect to be treated as a corporation for tax purposes.

What tax form is used for an LLC taxed as a corporation?

An LLC must file an SC1120 or SC1120S when they elect to be treated as a corporation for tax purposes.

Am I exempt from filing and paying taxes if I am a nonprofit organization?

You are exempt from filing and paying taxes only if you are granted a 501(C) status from the IRS. Otherwise, you are required to file and pay taxes. If you are an exempt organization and have unrelated business income, you are required to file an SC990T to report the income.

Learn more about tax exempt organizations​.

How does a company apply for a 501(C) nonprofit status?

Apply through the IRS to be granted 501(C) nonprofit status. Mail a copy of the IRS letter to the SCDOR for documentation purposes.

Learn more about t​ax exempt organizations​.

What form do I need to complete for Power of Attorney (POA)?

Use Form SC2848.

What is the purpose of a Power of Attorney?

Use SC2848 to grant authority to an individual to represent you before the SCDOR and to receive tax information. See the instructions for Part I, line 4 for limitations that may apply for certain representatives.

Who is the authority granted to?

This power of attorney authorizes the individuals named to perform any and all acts you can perform, such as signing consents extending the time to assess tax, recording the interview, or executing waivers agreeing to a tax adjustment. Authorizing someone as your power of attorney does not relieve you of your tax obligations. Delegating authority or substituting another representative must be specifically stated on line 4; however, the authority granted to a power of attorney may not exceed that allowed under SC Code Sec​tion 12-60-90. See South Carolina Revenue Procedures 92-4 and 92-6. The power to sign tax returns can only be granted in limited situations. See Line 4 - Acts Authorized for more information.

Can I use the Federal Form 2848 as a substitute?

Federal Form 2848 may be substituted for SC2848 even though the instructions for the two forms differ somewhat. Be sure to note the differences and complete the Federal Form 2848 accordingly.

Do I need a POA for each subsidiary for my consolidated return?

No. Only the parent corporation’s information is required on line 1; however, a subsidiary must file its own SC2848 for returns that are required to be filed separately from the consolidated return.

What is considered an invalid POA?

You must enter the type of tax, the tax form number, and the years or periods in order for the power of attorney to be valid. For example, you may list Corporate Income Tax, SC1120 for calendar year 2020.

A general reference to "All years," "All periods," or "All taxes" is not acceptable. The SCDOR will not accept a power of attorney with a general reference. You may list the current year/period and any tax years or periods that have already ended as of the date you sign the power of attorney.

You may include on a power of attorney only future tax periods that end no later than three years after the power of attorney is received by the SCDOR. The three future periods are determined starting after December 31 of the year the power of attorney is received by the SCDOR. You must enter the type of tax, the tax form number, and the future years or periods.

In order to obtain Corporate Tax information using an SC2848, an officer of the corporation must sign the power of attorney form and the officer listed must be verified on the latest return filed by the corporation. If the officer signing on behalf of the corporation is not verified on the latest Corporate Tax return, a copy of the minutes showing election of the officer and their position must be presented to the SCDOR. Power of Attorney forms and information pertaining to them may be mailed.

Do I need to have a Power of Attorney on file?

Yes. A Power of Attorney (POA) gives the SCDOR the authority to speak to a representative of the corporation or accounting firm about their account. The SC2848 should be signed by a verifiable officer listed on Schedule D of the Corporate Tax return.