• ​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.​​
  

Filing a Corporate Tax return automatically registers you with the SCDOR.  If this is your first return filed, check the Initial Return box on the front of the SC1120S. 

Once your Corporate Income Tax account is registered with the SCDOR, we will send you a Corporate Registration Filing Requirements letter (SC1070). This letter includes important information about your Corporate Income Tax filing requirements. To avoid processing delays, be sure to include your FEIN on all returns, payments, and correspondence sent to the SCDOR.​ 

You are required to file a CL-1 (Initial Annual Report of Corporations) and pay the $25 initial Corporate License Fee within 60 days of doing business or using capital in the state of South Carolina.  This fee should be paid to the SCDOR if you have not already done so with the South Carolina Secretary of State (SCSOS).

The SCDOR has no role in requiring a Certificate of Authority with the SCSOS to do business in South Carolina. Questions about who is required to have a Certificate of Authority should contact the SCSOS. The requirements for a Certificate of Authority are in Chapter 15 Title 33 of the South Carolina Code of Laws.​

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)

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.