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Rental property LLCs in South Carolina

Yes, you can hold a South Carolina rental in an LLC. You file Articles of Organization with the Secretary of State for $110, and an LLC taxed the default way files no annual report. The South Carolina catch is property tax: a primary residence is assessed at 4%, a rental at 6%, and Charleston ties its residential short-term rental permit to that 4% rate. Forming the LLC doesn't move your deed, and recording the deed carries a state fee unless an exemption applies.

Last checked 2026-10-23. General information, not legal or tax advice.

Local rental rules come first

Charleston. The city's residential short-term rental permit is tied to the 4% rate. The property "must be the owner's full time primary residence, as verified by receiving the County's 4% Legal Residence tax exemption for owner-occupied property," and investment properties aren't eligible, except commercially zoned properties in the short-term rental overlay (city STR FAQ). Commercial short-term rentals don't have to be 4% assessed or the owner's primary residence (city Category Criteria page). The application packet includes a Charleston County Assessor's 4% Property Tax Verification, no short-term rental may operate until a business license issues, and permits renew annually by the original issue date (city Application Materials and Permit Information pages). Even with a property manager, the owner stays responsible for collecting accommodations tax (city Applicable Fees page). For a long-term rental, the city says a license is required for "any business operating or generating income" in the city, so ask the Permit Center whether yours counts (city business license page).

Myrtle Beach. The city's business license ordinance requires a license for all rental properties: short-term, long-term, residential and commercial (city business license FAQ). Short-term means under 90 days. The city says most residential neighborhoods aren't zoned for it, districts beginning with R don't allow it except the RMV zone, and a property outside an allowing zone "cannot be converted to or approved for that use." Violations are misdemeanors with fines up to $500 and/or 30 days (city Planning & Zoning page; business license FAQ).

Columbia. Every residential rental property needs a City of Columbia Residential Rental Permit before anyone occupies it (Ord. 2015-099, effective July 1, 2016), and renewals expire each December 31 (Columbia Police Department residential rentals page). An owner who lives more than 45 miles from the city must name a local agent within 45 miles (city permit application). Short-term rentals (under 30 consecutive days) are a separate program: they need an STR permit and a business license, and the residential rental permit doesn't cover them (city STR pages). STRs are allowed in mixed-use, activity center/corridor, commercial and employment campus districts. In residential districts they need frontage on a four-lane arterial or collector street, except owner-occupied dwelling units, which Ord. 2026-013 (March 3, 2026) excuses from that rule (city Planning & Development STR page). The city's FAQ defines owner-occupied as classified so by the county and "receiving the 4% special assessment ratio."

Greenville. Short-term rentals (under 30 days) are "allowed in mixed-use, non-residential zoning districts," need an application and a current business license, and in multi-unit dwellings with four or more units no more than 25% can be used for STR (city STR page). Separately, Greenville's code defines commercial property as property "not solely owner-occupied": rental income of $5,000 or more a year owes business license tax, and smaller rental owners must still register and file an application (Greenville Code § 8-2). I couldn't find a separate citywide landlord registry or rental inspection program on the city's site.

Elsewhere. Rental rules are local. Ask your city or county before the first lease.

What the LLC protects, and what it doesn't

South Carolina's LLC Act says: "A member or manager is not personally liable for a debt, obligation, or liability of the company solely by reason of being or acting as a member or manager" (S.C. Code § 33-44-303(a)). It adds that failing to observe the usual company formalities isn't a ground for personal liability (§ 33-44-303(b)). The articles can make named members liable for company debts only if each consents in writing (§ 33-44-303(c)).

  • Guarantees still bind you. A personal guarantee you sign for a lender is your own promise.
  • Your own acts are yours. The protection covers liability that comes solely from being or acting as a member or manager; ask a South Carolina attorney about your own negligence.
  • It isn't insurance. The LLC still needs coverage that pays claims and defense costs.

One LLC, or one per property?

Separate LLCs keep one property's judgment away from the others, at $110 plus a registered agent each. South Carolina has no series-LLC option that I could find: the word "series" doesn't appear anywhere in its LLC Act (S.C. Code Title 33, ch. 44). So separate properties means separate LLCs. More: Should you have a separate LLC for each rental property?. Other states: Mississippi · Alabama · Arkansas · Indiana · Louisiana · Tennessee.

Form it where the property is, or register there

The simplest setup is a South Carolina LLC for South Carolina property. If you already have an LLC from another state, South Carolina's act says "the ownership in this State of income-producing real property" counts as transacting business (§ 33-44-1003(b)), so the LLC needs a certificate of authority. The application costs $110 and must come with a certificate of existence from your home state no more than 30 days old (§ 33-44-1204(a)(4); SOS foreign LLC form). Skipping it doesn't void your leases or waive your liability protection, but the LLC "may not maintain an action or proceeding" in South Carolina until it registers, which matters if you ever sue a tenant, and the Secretary of State becomes its agent for service of process (§ 33-44-1008). Applying also means the LLC agrees to the Department of Revenue's and the state courts' jurisdiction over its South Carolina tax liability (§ 33-44-1002(c)).

What it costs the state

  • Articles of Organization: $110 (S.C. Code § 33-44-1204(a)(1); SOS forms page)
  • Name reservation (optional): $25, holds the name for 120 days (§ 33-44-1204(a)(6); § 33-44-106(a))
  • Annual report: none for an LLC not taxed as a corporation (South Carolina Department of Revenue, SCDOR, corporate FAQ)
  • Corporate License Fee: only if the LLC elects corporate tax treatment, with a $25 minimum (SCDOR corporate FAQ)
  • Foreign LLC certificate of authority: $110
  • Change of registered agent or office: $10 (§ 33-44-1204(a)(9))
  • EIN: free from the IRS

Compare services: LLC services compared.

Forming the LLC, in order

  1. Pick a name that includes "limited liability company," "limited company," or "L.L.C.," "LLC," "L.C." or "LC" (§ 33-44-105(a)). Reserve it first if you want to hold it.
  2. Name a South Carolina agent for service of process and a designated office; the agent must be a South Carolina resident individual or an authorized entity (§ 33-44-108).
  3. File Articles of Organization with the Secretary of State ($110). The LLC exists when they're filed (§ 33-44-202(b)).
  4. Write an operating agreement.
  5. Get an EIN and open the LLC's bank account.
  6. Put the LLC's name and an address for notices and service in every lease; the Residential Landlord and Tenant Act requires the landlord to disclose in writing the name and address of an owner or an authorized agent and to keep it current (§ 27-40-420).
  7. Get the city permits and business license, and register with SCDOR if you rent short-term.

Forming the LLC doesn't move your deed

Putting your rental in the LLC takes a new deed, recorded with the register of deeds or clerk of court in the county where the property sits (§ 12-24-50). Recording adds a uniform $15 filing fee for a deed (§ 8-21-310(A)(1)), plus the state deed recording fee unless an exemption applies.

  • The fee is $1.85 per $500. It is $1.30 state plus $0.55 county for each $500, or fractional part, of the property's value (S.C. Code §§ 12-24-10(A), 12-24-90(A)). The grantor owes it and the grantee is secondarily liable (§ 12-24-20(A)). A mortgage that exists before and remains after the transfer is deducted from value (§ 12-24-30(B)).
  • A default-taxed single-member LLC is exempt. SCDOR says deeds between a single member and an LLC ignored for tax purposes are "not subject to the deed recording fee"; if the LLC elects corporate tax treatment, the transfer is taxed unless a § 12-24-40 exemption fits (SCDOR Deed Recording Fee Manual, Q23; Revenue Ruling 98-11).
  • A multi-member LLC is treated like a partnership. The statute exempts a transfer to a partnership by a partner when the only consideration is an interest in it (§ 12-24-40(8)), and SCDOR applies that to LLCs taxed as partnerships. Section 12-24-40(8) names corporations, partnerships and trusts, not LLCs, so confirm with your attorney how it applies to yours.
  • Every deed needs an affidavit. It is signed by a responsible person connected with the transaction, and for an exempt deed it must state the reason (§ 12-24-70(A)). A willfully false affidavit is a misdemeanor, fined up to $1,000 and/or up to a year in jail (§ 12-24-70(C)).

Have a South Carolina attorney prepare the deed and the affidavit.

Property tax: the 4% rate and your deed

A legal residence is assessed at 4% of fair market value on an application to the county assessor, and "all other real property" at 6% (§ 12-43-220(c), (e)). SCDOR says a second or vacation home is 6%, and a residence rented more than 72 days in a tax year is disqualified from the 4% rate (SCDOR property tax guide).

  • Your own home in your LLC. SCDOR says a single-member LLC's real property "may qualify for the 4% assessment ratio" if the LLC isn't taxed as a corporation and the property is its single member's residence (SCDOR property tax guide). For other structures, ask the assessor.
  • Changes of ownership or use. Tell the assessor within six months; a new owner must apply again. Losing eligibility without telling the assessor within six months can cost a penalty of 100% of the tax paid plus interest (§ 12-43-220(c)(2)(vi)–(vii)).
  • No reappraisal for a deed to your own single-member LLC. A deed is normally an assessable transfer that triggers reappraisal, but a transfer to a single-member LLC not taxed as a corporation, or back to its member, is not (§ 12-37-3150(A)(1), (B)(11)). Transfers not taxable federally, such as a contribution to a partnership under IRC § 721, are also excluded (§ 12-37-3150(B)(1)); ask the county assessor.

Check the mortgage before you transfer

Federal law lets a lender enforce a due-on-sale clause, and a transfer to an LLC isn't one of the exceptions for 1–4 unit homes (12 U.S.C. § 1701j-3(d)). Fannie Mae allows a transfer to an LLC the borrower controls for loans it acquired on or after June 1, 2016 (Fannie Mae Servicing Guide D1-4.1-02). Ask your servicer in writing.

Insurance and taxes

Tell your insurer before title moves. For federal income tax, a single-member LLC is disregarded unless it elects corporate treatment (IRS). South Carolina follows suit: a single-member LLC not taxed as a corporation "is not regarded as an entity separate from its owner" for state tax purposes (§ 12-2-25(B)(1)), so an individual owner reports its income on the SC1040 (SCDOR Revenue Ruling 98-11).

  • Short-term rentals owe accommodations tax. The state imposes 7% on rentals to transients, and a stay by the same person for 90 continuous days isn't transient (§ 12-36-920(A)). If you book guests directly you need an SCDOR Retail License, one per location; a property manager or booking platform that takes the booking remits the tax for you (SCDOR accommodations page).

Keeping each LLC in good standing

  • There's no annual report for an LLC taxed as a pass-through (SCDOR corporate FAQ). The Secretary of State can start administrative dissolution if the LLC doesn't pay a fee, tax or penalty within 60 days after it's due, and reinstatement within two years needs a Department of Revenue certificate that all taxes are paid, plus a $25 fee (§§ 33-44-809, -810, -811, -1204(a)(11)).
  • Keep the registered agent current (§ 33-44-108(a)).
  • The county assessor annually sends each non-individual owner of record an ownership certificate to sign and return; knowingly falsifying it risks a penalty of two to three times the taxes due (§ 12-37-3160(B)).
  • If you ever sell more than 50% of the LLC's interests within 25 years, the LLC must notify the assessor within 45 days on an SCDOR form or face a penalty of $100 to $1,000; transfers not taxable federally, such as between spouses, don't count (§ 12-37-3150(A)(8)).
  • Renew city permits: Columbia's rental permits expire December 31, and Charleston's STR permits renew by their issue date.

Before you file or transfer a property

  • Attorney: the deed, the exemption claim and affidavit, separate LLCs
  • Servicer: is the transfer allowed?
  • Insurance agent: named insured, coverage
  • County assessor: 4% status, change of ownership
  • CPA: income tax and accommodations tax
  • City: business license, rental or STR permit in the LLC's name
  • Calendar: permit renewals, assessor certificate

Form it with Corpus

Corpus prepares and files your Articles of Organization and includes the first year of registered-agent service. The South Carolina page shows the current price. Corpus isn't a law firm: the deed, the loan, taxes and city permits are separate steps.

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Sources

Last checked 2026-10-23. Corpus is not a law firm and does not provide legal or tax advice.