Complete the SC-K and the SC1065 K-1s before completing page 1 of the SC1065. Provide each partner with a copy of their SC1065 K-1 showing the Withholding Tax paid on their behalf. Include all SC1065 K-1s with the filing of the SC1065.

You must pay in full the balance of tax shown to be due on the SC1065. Failure to pay the tax on time will result in additional penalty and interest. Pay online using our free tax portal, MyDORWAY, at dor.sc.gov/pay. Select Business Income Tax Payment to get started. If paying by check, include name of partnership, FEIN, and tax year in the memo and attach to the paper return.

See Code Section 12-8-590, SC Revenue Procedure 17-2​.

A partner, shareholder, or member who completes the I-309 Nonresident Shareholder or Partner Affidavit and Agreement, Income Tax Withholding directs the partnership, S corporation, or LLC not to withhold and places all of the compliance requirements on the partner, shareholder, or member.

See Code Section 12-8-590 and SC Revenue Procedure 17-2​.

The affidavit is used by a nonresident shareholder or partner to request an exemption from the withholding required pursuant to Code Section 12-8-590. A separate affidavit must be submitted by each partner or shareholder for stock that is jointly owned. The affidavit is valid for all subsequent years and should not be resubmitted to the entity as long as (1) the shareholder's or partner’s nonresident status remains unchanged or (2) the withholding exemption is not revoked by the SCDOR. A shareholder or partner should fully complete the affidavit and submit it directly to the S-corporation or partnership. The affidavit should be signed by an officer of the corporation or a partner in the partnership. A partnership or LLC taxed as a partnership should attach the ​I-309s to the SC1065 partnership return or SC8736 extension, and file with the SCDOR on or before the 15th day of the third month following the close of the partnership's tax year. Any Income Tax due must be paid by the original due date of the return and is subject to the declaration of Estimated Tax rules. The affidavit does not need to be completed by shareholders or partners for which the S corporation or partnership will file a composite nonresident Income Tax return.