Get SC DoR SC1120 2008

Unless subject to a specific exemption in the South Carolina Income Tax Act, every corporation incorporated, qualified to do business, or required to file a tax return in South Carolina is subject to the South Carolina corporate license fee (franchise tax).

South Carolina Capital Gains Tax First, short-term capital gains (those realized in less than a year) are considered normal taxable income and taxed at the rates listed above. For long-term gains, 44% of the net capital gain is exempt.

The current capital gains tax rates under the new 2018 tax law are zero, 15 percent and 20 percent, depending on your income. The 2018 capital gains tax rate is holding steady through 2019, but the income required for each rate has changed.

Some States Have Tax Preferences for Capital Gains While most states tax income from investments and income from work at the same rate, nine states Arizona, Arkansas, Hawaii, Montana, New Mexico, North Dakota, South Carolina, Vermont, and Wisconsin tax all long-term capital gains less than ordinary income.

Seven states Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming levy no personal income tax. Two (New Hampshire and Tennessee) don't tax wages, but do currently tax investment income and interest.

Sales taxes South Carolina's state sales tax rate is 6 percent for most purchases. South Carolina also has a 7 percent accommodations tax.

South Carolina's general state sales and use tax rate is 6%. In certain counties, local sales and use taxes are imposed in addition to the 6% state rate.

South Carolina has a flat corporate income tax rate of 5.000% of gross income. The federal corporate income tax, by contrast, has a marginal bracketed corporate income tax.South Carolina's maximum marginal corporate income tax rate is the 3rd lowest in the United States, ranking directly below North Dakota's 5.200%.

South Carolina's corporate income tax, which applies to traditional (C-type) corporations, has a flat rate of 5.0%. For purposes of comparison, note that South Carolina taxes most personal income at marginal rates ranging from 0.0% to 7.0%.

The small business tax rate for 2019 is a flat 21% for a C-corporation. On average, the effective small business tax rate is 19.8%. However, businesses pay different amounts in taxes based on their entities.

The Tax Cuts and Jobs Act of 2017 changed the top corporate tax rate from 35% to one flat rate of 21%. This rate will be effective for corporations whose tax year begins after January 1, 2018, and it is a permanent change. The corporate tax rate also applies to LLC's who have elected to be taxed as corporations.

Nevada, Ohio, Texas, and Washington impose gross receipts taxes instead of corporate income taxes. Gross receipts taxes are generally thought to be more economically harmful than corporate income taxes. South Dakota and Wyoming are the only states that do not levy a corporate income or gross receipts tax.

Most corporations in the state should file SC 1120, the Corporation Tax Return. It includes an annual report. If your LLC is taxed as an S corporation, file form SC 1120S with the Department of Revenue.

In South Carolina, you can file Articles of Incorporation by mail, fax or in person (it will take the SOS 1 to 2 days to process your filing). If you hire Active Filings to incorporate your business, we are authorized to file online with the state, and we'll form your LLC or corporation in 1 business day.

If you file by mail, the state filing fee to submit Articles of Organization for your South Carolina LLC is $110. Filing online is faster but more expensive at $125.