Partnership Income Tax

• A Partnership must reflect two or more partners. 
  
• Multi-state partnerships must directly allocate certain items and apply an apportionment ratio to the remaining income (loss) of the partnership. 
• Taxable income (loss) of a partnership flows through and is taxable to the partners in the same manner as for federal partnership income. 
• South Carolina income taxable to nonresident partners is subject to withholding by the partnership at a 5% rate. 
• Nonresident partners are exempt from the withholding requirement if:
• They provide affidavits (I-309​) of their intention to file, or 
• They are included in a composite return filed by the partnership on behalf of all of its nonresident partners. 
  Learn more about composite returns >

• Filing a Partnership Tax return automatically registers you with the SCDOR. On your first return, check the Initial Return box on the front of the SC1065. 
• You will receive a Partnership Registration letter (SC1067) with important information about your account. Use your FEIN on all Partnership Tax returns, payment documents, and correspondence submitted to the SCDOR. 
• Every partnership (including any multiple member LLC not taxed as a corporation), domestic or foreign, doing business or owning property in South Carolina must file SC1065.​
  

How to file and pay