S Corporation | South Carolina Department of Revenue

A corporation doing business in South Carolina with a valid Subchapter S election granted by the IRS, must file the S Corporation Income Tax Return (SC1120S). The Corporate Income Tax rate on S Corporations is 5% on South Carolina taxable income taxed by the S Corporation.

Setting up your Corporate Tax account

Filing a Corporate Tax return automatically registers you with the SCDOR.

You are required to file an Initial Annual Report of Corporations (CL-1) and pay a one-time $25 initial corporate License Fee within 60 days of doing business or using capital in the state of South Carolina.
- If you have not already paid this fee to the South Carolina Secretary of State (SCSOS), you should pay it to the SCDOR.
On your first return, check the Initial Return box.
Once your Corporate Income Tax account is registered, we will send you a Corporate Registration Filing Requirements letter (SC1070), which includes important information about your Corporate Income Tax filing requirements.

What you must submit to the South Carolina Secretary of State's office (SCSOS)

Domestic corporations must submit the Articles of Incorporation and related documents to the SCSOS.
Foreign corporations must submit their Certificate of Authority to Transact Business in South Carolina application and related documents to the SCSOS.
All corporations must submit the Initial Annual Report of Corporations (CL-1) to the SCSOS.

Corporate FAQs

Corporate Forms

Need help?

Phone: 1-844-898-8542
Email: CorpTax@dor.sc.gov

S Corporations must pay an annual License Fee which is 0.1% of capital and paid in surplus, plus $15.

Your license fee cannot be less than $25 annually.
The license fee is due at the same time as your return or request for extension and applies to the tax year following the Income Tax year.

Beginning with the 2021 tax year, a qualifying S Corporation, including an LLC taxed as an S Corporation, can elect to have its active trade or business income taxed at the entity level instead of the shareholder level.

The election is made annually at the S Corporation level on the SC1120S on behalf of all shareholders. Mark the box on page 1 of the SC1120S to make your Active Trade or Business election.
S Corporations use the I-435 to identify active trade or business income and calculate the tax due.
S Corporations will use the SC1120S K-1 to report to each shareholder their share of the active trade or business income taxed at the S Corporation level.

For more information, refer to SC Revenue Rulings 21-15 and 22-5.

S Corporations are required to withhold annually 5% of the SC taxable income of shareholders who are nonresidents of South Carolina.

Pay the nonresident shareholder withholding to the SCDOR with the SC1120S-WH by the 15th day of the third month following the end of the tax year. By this same date, the S Corporation must provide the nonresident shareholders a 1099-MISC with South Carolina Only written at the top showing the amounts of income and tax withheld.
We recommend making your payment on our free tax portal, MyDORWAY, at dor.sc.gov/pay. Select Business Income Tax Payment to get started.
- If you pay on MyDORWAY, you must also mail in your completed SC1120S-WH return to: SCDOR, Corporate Taxable, PO Box 100151, Columbia SC 29202.
- If you pay by check, make payable to "SCDOR" and include your business name, FEIN, and “SC1120S-WH” in the memo.

S Corporations are not required to withhold on nonresident shareholders who:

participate in a composite Income Tax return
file an I-309 affidavit with the S Corporation
are tax exempt under IRC 501(a)

Check your SC Business Income Tax refund status!

You'll need your FEIN (Federal Employer Identification Number) and refund amount!

How to file and pay

The S Corporation Income Tax Return (SC1120S) is due annually, regardless of any income or business in an accounting period.

This includes the annual report, (Schedule D), which is part of the SC1120S, and payment of the license fee.
Due date: Your return and payment are due by 15th day of the third month after the end of your business year.

Taxpayers whose South Carolina tax liability is $15,000 or more per filing period must file and pay electronically.

File online

Regardless of your tax liability, we recommend you file online using an approved vendor.

filing options

File by paper

As long as your liability is less than $15,000 for the filing period, you can also file by paper using the S Corporation Income Tax Return (SC1120S).

Request your extension to file by paying your balance due on our free online tax portal, MyDORWAY. Visit dor.sc.gov/pay and select Business Income Tax Payment to get started.

Your payment on MyDORWAY automatically submits your filing extension request.
No additional paperwork required!

If you’re not making your extension request online, mail the SC1120T to the address on the form.

Be sure to include your correct FEIN on the SC1120T. Providing an incorrect FEIN results in processing delays and errors in posting payments.
Make your check payable to the SCDOR.
Include your name, FEIN, tax year, and SC1120T in the memo.
Do not send cash.

There is no extension of time to pay.

Pay online with MyDORWAY

MyDORWAY is the preferred way to securely make payments using a credit card or electronic check (ACH Debit or Electronic Funds Withdrawal). Visit dor.sc.gov/pay or log in to your account to make a payment.

Need a MyDORWAY account? Sign up

Have questions? See MyDORWAY help

S Corporations must make Estimated Tax (or declaration) payments if their estimated tax (Income Tax less credits) is $100 or more.

Quarterly installments are due by the 15th day of the fourth, sixth, ninth, and twelfth months of the tax year.

The SCDOR recommends making your Estimated Tax payments on our free tax portal, MyDORWAY, by going to dor.sc.gov/pay:

Select Business Income Tax Payment
- TIP: If you have a MyDORWAY account, you can log in to schedule your payments.
Do not mail in your SC1120CDP paper form if you pay online.

If filing your SC1120CDP by paper:

Make your check payable to "SCDOR" and include your name, FEIN, tax year, and SC1120CDP in the memo.
Mail your SC1120CDP and payment in one envelope.

Frequently asked questions and reminders

The S Corporation does not need to withhold on behalf of any shareholder participating in a composite return. Shareholders participating in a composite return do not need to pay Estimated Tax. A nonresident shareholder may provide the S Corporation with an affidavit, Form I-309, agreeing that they will pay and be individually responsible for any SC tax, interest, and/or penalties which may be due. The S Corporation may attach such affidavit to the SC1120S-WH and the S Corporation would therefore, not be required to withhold Income Tax on behalf of such shareholder. If an affidavit has been previously filed, it should not be resubmitted.

What is the withholding required by an S Corporation for shareholders who are nonresidents of South Carolina?

Corporations are required annually to withhold 5% of the South Carolina taxable income of shareholders who are nonresidents of South Carolina.

A nonresident shareholder may provide the S Corporation with an I-309 affidavit agreeing the shareholder is subject to the jurisdiction of the SCDOR and the courts of this State for purposes of determining and collecting South Carolina tax, interest, and penalties that may be due. The S Corporation may attach the I-309 to the SC1120S-WH and the S Corporation is not required to withhold Income Tax on behalf of such shareholder. If the S Corporation has no South Carolina taxable income for the year, the filing of the SC1120S-WH is not required. S Corporations that report the income of their nonresident shareholders on a composite return are not required to withhold tax, file SC1120S-WH or file the I-309.

What form do I use to pay the nonresident withholding withheld on behalf of nonresident shareholders of an S Corporation?

The Income Tax withheld is paid using for SC1120S-WH. Payment must be made by the 15th day of the third month following the taxable year end. Taxpayers requesting an extension of time to file the SC1120S must estimate an amount of income subject to withholding. There is no extension for filing the SC1120S-WH.

Pay online using our free tax portal, MyDORWAY, at dor.sc.gov/pay. Select Business Income Tax Payment to get started. Payments of $15,000 or more must be submitted electronically according to SC Code Section 12-54-250. The SC1120S-WH cannot be filed electronically. If you pay on MyDORWAY, you must still mail your completed SC1120S-WH to the address on the form.

Failure to file the SC1120S-WH, along with full payment of the tax due, by the 15th day of the third month following the taxable year end of the S Corporation, will result in late file and late pay penalties along with interest.

The SC 1120S-WH must be submitted separately from the SC 1120S.

Payments made by SC 1120-CDP, SC 1120-T, or SC1040ES cannot be applied to the SC1120S-WH. Any overpayment on the SC1120S cannot be transferred to the SC1120S-WH. The overpayment on an SC1120S must be refunded or applied as a credit carry-forward to the next tax year.

How can a nonresident shareholder of an S Corporation claim credit for withholding?

The S Corporation must provide nonresident shareholders an 1099-MISC with "South Carolina Only" written at the top showing respective amounts of income and tax withheld. Each nonresident shareholder must attach a copy of the 1099-MISC to their respective Income Tax return as verification for claiming credit for this withholding.

Payments made on the SC 1120S-WH cannot be claimed as payments on the SC 1120S and can only be claimed at the shareholder level.

The SC 1120S-WH is not required to be filed if the S Corporation has no South Carolina taxable income for the year. S Corporations that report the income of their nonresident shareholders on a composite return are not required to withhold tax, file an SC 1120S-WH or file affidavits.

If I am filing an extension (SC1120T) for my S Corporation, do I still need to withhold 5% of the South Carolina taxable income of the shareholders who are nonresidents of South Carolina?

Yes. S corporations requesting an extension of time to file the SC1120S must estimate South Carolina taxable income of nonresidents and pay 5% (.05) withholding tax on this amount. File the SC 1120S-WH by the 15th day of the third month following the taxable year end.

There is no extension for filing the SC1120S-WH or making the payment.

Can I apply payments made on the SC1120S-WH to my S Corporation?

No. Payments made on the SC1120S-WH cannot be claimed as payments on SC1120S. Payments made on the SC1120S-WH are claimed on the Individual Income Tax return (SC1040) of the shareholder.

Can I request a refund of the monies paid on an SC1120S-WH?

No. A refund must be requested by the shareholder on an SC1040.

Mailing addresses

Refund or Zero Return	Balance Due Return	Estimated Tax (SC1120CDP), Tentative (SC1120T), or Voucher (SC1120V)	Correspondence
South Carolina Department of Revenue Corporate Refund PO Box 125 Columbia, SC 29214-0032	South Carolina Department of Revenue Corporate Tax PO Box 100151 Columbia, SC 29202	South Carolina Department of Revenue Corporate Voucher PO Box 100153 Columbia, SC 29202	South Carolina Department of Revenue Corporate Tax PO Box 125 Columbia, SC 29214-0400

A corporation doing business in South Carolina with a valid Subchapter S election granted by the IRS, ​​​must file the S Corporation Income Tax Return ​(SC1120S​). The Corporate Income Tax rate on S Corporations is 5% on South Carolina taxable income taxed by the S Corporation.

Setting up your Corporate Tax account

Need help?

Annual license fees​

Active trade or Business Income Tax election

​Nonresident Withholding

Check your SC Business Income Tax refund status!

How to file and pay

​File online

File by paper

Request an extension of time to file

Pay online with ​​MyDORWAY

Make Estimated Tax payments

Shareholders participating in composite returns

Nonresident withholding

Mailing addresses

A corporation doing business in South Carolina with a valid Subchapter S election granted by the IRS, must file the S Corporation Income Tax Return (SC1120S). The Corporate Income Tax rate on S Corporations is 5% on South Carolina taxable income taxed by the S Corporation.

File online

Pay online with MyDORWAY