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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.
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.
See SC Code Section
12-6-5030, SC Revenue Procedure
In order to extend the time allowed for filing a composite return, file the SC4868.
Any tax estimated to be due must be paid with the timely filed extension. A composite return cannot be extended by filing the SC1120T or federal Form 7004. Likewise, the extension of the composite return does not extend the South Carolina S-corporation (SC1120S) or partnership (SC1065) tax return.
See SC Revenue Procedure
SC8736 to request an extension of time to file the Partnership Tax return. The request for extension extends the filing due date for up to six months. An extension of time to file your Partnership Tax return does not extend the time to pay your nonresident Withholding Tax.
Pay online by credit card or electronic check using our free tax portal, MyDORWAY, at
dor.sc.gov/pay. Select Business Income Tax Payment to get started. If you pay online, no additional form or paperwork is required
If filing by paper, mail the SC8736 to the SC Department of Revenue at the appropriate address as shown on the front of the form and pay the balance due. When filing your SC1065, check the extension box on the front of the return.
A newly formed partnership can register with the SCDOR using our secure tax portal,
MyDORWAY. Select Register a New Business or Tax Account to get started. To submit your registration application by mail, use the
Filing a Partnership Tax return will automatically register you with the SCDOR. If this is your first return filed, check the box for “Initial Return” on the face of the
You will receive a Partnership Registration letter (SC1067) listing your partnership file number along with other important information. Use your FEIN and partnership file number on all Partnership Tax returns, payment documents, and correspondence submitted to the
Yes. Send a letter on company letterhead and signed by a partner to SCDOR, Registration/Database Maintenance, PO Box 125, Columbia SC 29214-0400.
NOTE: A change in ownership of greater than 50% requires all new registrations with the SCDOR. A change of 25% or more requires a new ABL (Alcoholic Beverage Licensing) account.
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.
SC1065 K-1 to each partner. Partnerships receiving passive activity income and losses from investments located within and outside of South Carolina must furnish partners with detailed accountings of these amounts.
Similar information must be furnished to partners who did not materially participate in the trade or business of a partnership engaged in multi-state operations. These partners may have nondeductible passive losses that cannot be used to offset interest and other business-related portfolio income apportioned to South Carolina.
A taxpayer whose entire business is transacted or conducted in South Carolina is subject to Income Tax based on the entire taxable income of the business for the taxable year. A taxpayer that transacts or conducts its business partly within and partly outside of South Carolina is subject to Income Tax based on the portion of its business carried on in South Carolina. This portion is determined through allocation and apportionment of income.
SC Code 12-6-2220 and 12-6-2230 provide that certain classes of income, less related expenses, are allocated. The income remaining after allocation is apportioned in accordance with
SC Code 12-6-2240. South Carolina generally requires the use of one of the following apportionment methods:
If a partnership has more than 50 partners, we request that you submit the K-1 information on a CD in any file format that is compatible with Microsoft Word or Excel.
The CD should be labeled with the following information: partnership name, FEIN, SC partnership file number, and tax year.
Excel spreadsheets are also accepted. We will continue to accept paper K-1s but request the CD or spreadsheet method of reporting. Permission does not need to be obtained from this office to submit K-1s by these methods.
Pay online by credit card or electronic check using our free tax portal,
dor.sc.gov/pay. Select Business Income Tax Payment to get started.
If paying by check or money order, make check payable to the SC Department of Revenue, include name of partnership and FEIN on payment. Attach check or money order to the paper return.