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.

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

Due Dates:

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. 

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. 

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.

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.  

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.  

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.
  

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

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