Why Start a Nonprofit in South Carolina?
South Carolina offers an affordable, straightforward path to nonprofit formation with low filing fees and clear compliance procedures. The incorporation process is simple, online filing is fast (24 hours), and the state's fee structure is friendly to startup nonprofits.
The main thing to understand upfront: South Carolina requires Form CL-1 (Initial Annual Report) within 60 days of starting business. This isn't complicated, but it's a deadline that many founders miss. Get it on your radar early. Beyond that, South Carolina's ongoing compliance is manageable: an annual report (or copy of your IRS Form 990) due on May 15, and charitable registration renewal if you're soliciting donations.
South Carolina also makes it easy to understand your obligations — the state clearly defines exemptions from charitable registration (under $7,500 annual solicitation, or members-only solicitation without professional fundraisers), so you can quickly determine what applies to your organization.
Formation Requirements
Filing with the South Carolina Secretary of State
Your nonprofit incorporation happens through the South Carolina Secretary of State, Division of Public Charities and Business Entities.
Contact Information:
- Online Filing Portal: https://businessfilings.sc.gov/BusinessFiling/
- Charities Registration: https://sos.sc.gov/online-filings/charities-pfrs-and-raffles/charities
- Email: charities@sos.sc.gov
- Phone: (803) 734-1790
- Mailing: South Carolina Secretary of State, Attn: Division of Public Charities, 1205 Pendleton St., Suite 525, Columbia, SC 29201
Governing Statute
Your nonprofit formation is governed by the South Carolina Nonprofit Corporation Act of 1994 (Title 33, Chapter 31). Charitable solicitation is governed separately under Title 33, Chapter 56.
Articles of Incorporation (Form F0014)
Your formation document is Form F0014 (Nonprofit Articles of Incorporation), last revised August 2016.
Required Content:
- Organization name — Must be distinguishable from other registered entities
- Statement of corporation type — Specify whether Public Benefit, Mutual Benefit, or Religious
- Registered agent — Name and street address (physical, not PO Box)
- Incorporators — Name, address, and zip code of at least one incorporator
- Principal office address — Street address of primary office
- Members statement — Indicate whether the corporation will have members
- Asset distribution clause — For 501(c)(3) applicants, specify that assets distribute to another 501(c)(3) upon dissolution
- Optional: Purpose statement, names of initial directors (if named, directors must sign articles)
Filing Fee: $25 (articles) + $7.50 (online processing fee) = $32.50 online; $25 by mail Processing Time: Approximately 24 hours (online) or 3–7 business days (mail)
Required Additional Document: Form F0028 (501(c)(3) Attachment)
If you're seeking federal tax-exempt status, file Form F0028 (501(c)(3) Attachment) simultaneously with your Articles of Incorporation. This form includes:
- Purpose statement
- No inurement clause (ensuring net income doesn't go to private persons)
- Asset distribution on dissolution provision
Both Form F0014 and Form F0028 must be filed together.
Form CL-1: Critical Deadline
This is the most commonly missed deadline in South Carolina.
Within 60 days of commencing business, you must file Form CL-1 (Initial Annual Report) with the SC Secretary of State. This includes a minimum $25 license fee.
Late Filing Consequences:
- 5% monthly penalty (up to 25% total)
- Interest at prevailing federal rate
- Potential dissolution or suspension of corporate status
Get this on your calendar immediately upon incorporation approval. Many founders focus on federal 501(c)(3) filing and accidentally miss this state deadline. Don't let this be you.
Name Requirements and Availability Search
Search the SC Secretary of State business entities database at https://sos.sc.gov/online-filings/business-entities to verify your name is available.
Requirements:
- Name must be distinguishable from other registered entities
- Cannot be misleading
- Typical nonprofit suffixes: Inc., Corporation, Corp, Limited, Ltd, Company, Co
- Optional name reservation available for $10 (reserved for 120 days)
Governance Requirements
Board of Directors
South Carolina requires a minimum of 3 directors. No maximum is specified. The IRS also expects at least three unrelated directors for 501(c)(3) approval, so planning for 3+ directors satisfies both requirements.
- Directors serve 5-year terms or less per statute
- No residency requirement
- Selection: Elected by members or appointed per bylaws
Officers
Required officers (at minimum):
- President
- Secretary
- Treasurer
Additional officers may be created as needed per bylaws. The board may designate additional officer positions and responsibilities.
Registered Agent
You must appoint and maintain a registered agent at all times.
Requirements:
- Individual: Must be at least 18 years old and an SC resident
- Business Entity: Must be authorized to conduct business in South Carolina
- Address: Physical street address only (no PO Box)
- Availability: Must be reliably available during regular business hours
Failure to maintain a registered agent can result in administrative dissolution. If your registered agent moves or becomes unavailable, update the Secretary of State immediately.
Bylaws and Meetings
Bylaws are required by law but NOT filed with the Secretary of State. Your bylaws should address:
- Board meeting procedures, frequency, and notice requirements
- Officer selection, roles, and removal procedures
- Member meeting procedures (if applicable)
- Amendment procedures
- Quorum requirements
- Virtual/remote participation procedures (South Carolina permits directors to participate via phone or video conference)
Meetings: Annual board meeting required. Special meetings require at least 2 days' notice. Members (if applicable) must have an annual meeting. All participants in remote meetings must be able to hear each other simultaneously, and remote participation counts as in-person attendance.
State Tax Exemption
Income Tax
South Carolina automatically exempts 501(c)(3) organizations from corporate income tax upon federal determination. No separate state application is required.
State Tax Return:
- If you have no unrelated business income, no state return is required
- If you have unrelated business income and file federal Form 990-T, you must also file SC990-T with the SC Department of Revenue, due 15 days of the 5th month after fiscal year end (May 15 for calendar-year nonprofits)
Sales Tax Exemption
South Carolina offers a sales tax exemption for nonprofits, but it requires a separate application.
Application Process:
- Submit Form ST-387 (Sales Tax Exemption Certificate) to the SC Department of Revenue
- Attach: IRS Letter of Determination, bylaws, recent income statement, and balance sheet
- Processing time: Approximately 4–6 weeks (NEEDS VERIFICATION in some sources)
Important: This exemption applies only to items purchased for resale. It does NOT apply to items purchased for your organization's own use. For example, if your nonprofit runs a thrift store, you're exempt on inventory for resale but not on office supplies for your own use.
Property Tax Exemption
South Carolina offers property tax exemption for specific nonprofit types, but eligibility depends on your organization's function.
Eligible Organizations:
- Private schools, colleges, educational institutions
- Nonprofit hospitals
- Nonprofit institutions caring for infirm, handicapped, aged, children, or indigent persons
- Nonprofit museums
- YMCA, YWCA, Salvation Army
- Boy Scouts/Girl Scouts (property used exclusively for scouting)
- Nonprofit housing corporations (for aged or handicapped persons in below-cost housing)
Application:
- File online via MyDORWAY (SC Department of Revenue online portal)
- Form PT-401O (Property Tax Exemption Application for Organizations)
- Available at: https://dor.sc.gov/forms-site/Forms/PT401O.pdf
Status: Once approved, exemption continues unless your status or ownership changes.
Ongoing Compliance
Form CL-1 (Initial Annual Report)
Due: Within 60 days of commencing business Fee: Minimum $25 license fee Deadline: 60 days from beginning operations Late Penalties: 5% monthly penalty (max 25%) plus federal interest rate
This is your most urgent first deadline after incorporation.
Annual Financial Report to Secretary of State
Due: May 15 (15th day of 5th month) following fiscal year end Fee: $50 (renewal fee for organizations soliciting charitable contributions) Required: Organizations soliciting charitable contributions
Document Options — Submit ONE of the following:
- SC Department of Revenue Annual Financial Report Form
- IRS Form 990 (Full Return)
- IRS Form 990-EZ (Short Form)
- IRS Form 990-PF (Private Foundation)
- IRS Form 990-N (e-postcard filers)
Extensions: Automatic 6-month extension available via Form 8868 (request before original due date). Form 990-N cannot be extended.
Late Penalties: $10 per day per report (maximum $2,000 per report)
Filing Method: Online at https://sos.sc.gov/online-filings/charities-pfrs-and-raffles/charities or mail to SC Secretary of State
Charitable Solicitation Registration (If Applicable)
If your organization solicits donations (and doesn't qualify for exemption), you must:
Initial Registration:
- File the Registration Statement for a Charitable Organization at https://sos.sc.gov/online-filings/charities-pfrs-and-raffles/charities
- Fee: $50
- Due: Before beginning solicitation
Annual Renewal:
- Fee: $50
- Due: May 15 (same date as annual financial report)
- Required: Updated Registration Statement + Annual Financial Report (or IRS Form 990)
Exemptions from Registration:
- Soliciting less than $7,500 annually
- Soliciting only from members (without professional fundraisers)
SC990-T (If Applicable)
If your nonprofit has unrelated business income exceeding $1,000, file SC990-T with the SC Department of Revenue.
Due: 15 days of 5th month after fiscal year end (May 15 for calendar-year nonprofits) Content: State's version of federal Form 990-T, adjusted for SC tax modifications Payment Method: MyDORWAY (SC Department of Revenue online portal) using credit card or ACH
Charitable Solicitation Registration
When Registration is Required
You must register if you solicit contributions from the general public.
Exemptions from Registration:
- Soliciting less than $7,500 annually
- Soliciting only from members (without professional fundraisers)
Most small nonprofits that solicit will need to register.
Registration Process
Form: Registration Statement for a Charitable Organization (revised December 2016) Available: https://sos.sc.gov/sites/sos/files/Documents/Charities/Registration%20Statement%20for%20a%20Charitable%20Organization.pdf
Filing Method: Online at https://sos.sc.gov/online-filings/charities-pfrs-and-raffles/charities
Initial Fee: $50 Renewal Fee: $50 annually
Professional Fundraisers
If you hire professional fundraisers, they must register separately with the SC Secretary of State. Provide to the state:
- Information about the fundraising campaign
- Percentage of gross contributions the nonprofit will receive
- Fundraising contract between nonprofit and fundraiser
Key Deadlines at a Glance
| Deadline | Task | Agency | Fee | |----------|------|--------|-----| | Within 60 days of incorporation | File Form CL-1 (Initial Annual Report) | SC Secretary of State | $25 minimum | | Before soliciting | Charitable registration (if applicable) | SC Secretary of State | $50 | | May 15 (5th month, 15th day) | Annual financial report + charitable renewal | SC Secretary of State | $50 renewal (if registered) | | May 15 (if applicable) | SC990-T (if unrelated business income) | SC Department of Revenue | $0 | | 15th of 5th month | Federal Form 990 | IRS | $0 |
Important Considerations
The 60-Day Form CL-1 Deadline is Critical
This is the most commonly missed deadline for South Carolina nonprofits. You have 60 days from commencing business to file Form CL-1 with the Secretary of State. Missing this deadline results in 5% monthly penalties plus federal interest, and can lead to suspension or dissolution.
Get this on your calendar the day your incorporation is approved. Many founders focus entirely on federal 501(c)(3) application and miss this state deadline. Don't be that founder.
May 15 is Your Annual Compliance Deadline
South Carolina congregates multiple annual deadlines on May 15 (5th month, 15th day):
- Annual financial report to Secretary of State ($50 if registered for charitable solicitation)
- Charitable registration renewal ($50 if registered)
- SC990-T (if applicable, if unrelated business income)
Set a single calendar reminder for May 15 and handle all three filings at once.
Three-Director Minimum is Firm
Unlike some states, South Carolina requires a minimum of 3 directors. You cannot incorporate with fewer than 3. This is both a state law requirement and aligns with IRS expectations.
Registered Agent Must Be Maintained
Your registered agent is your lifeline for legal documents. If your agent becomes unavailable, moves out of state, or can no longer serve, update the Secretary of State immediately. Failure to maintain a registered agent is a compliance violation.
Sales Tax Exemption Requires Separate Application
Federal 501(c)(3) status does NOT automatically grant state sales tax exemption. You must file Form ST-387 separately with the Department of Revenue. Processing time varies, so apply early.
Property Tax Exemption Depends on Organization Type
Not all nonprofits qualify for property tax exemption. The state has specific categories of eligible organizations. If you own property, check whether your organization type qualifies. If it does, apply through your county assessor.
The $7,500 Annual Solicitation Exemption
If you solicit less than $7,500 annually, you don't need to register for charitable solicitation. However, if you exceed this threshold in any year, you must register. Track your annual solicitation amounts carefully — exceeding the threshold by even $1 requires registration.
What We Can Help With
South Carolina's formation process is straightforward, but the 60-day CL-1 deadline and dual annual compliance filings (state report + charitable renewal) require careful calendar management. At Wylie Advisory, we offer several ways to help:
- Startup Navigator — Full-service consulting covering Articles, Form CL-1, bylaws, registered agent, charitable registration (if applicable), federal 501(c)(3) filing, and compliance calendar
- Governance Review — Review your incorporation documents and ensure you've met the 60-day CL-1 deadline
- Advisory Calls — Quick answers about South Carolina-specific deadlines, exemptions, or filing requirements
Or, for hands-on guidance, the Nonprofit Startup Navigator walks you through South Carolina formation step by step.
Ready to Get Started?
You now understand South Carolina's pathway to nonprofit formation. The state is founder-friendly with low filing fees and fast online processing. Remember the critical 60-day Form CL-1 deadline, the May 15 annual compliance cluster, and the importance of registering for charitable solicitation if you solicit donations.
South Carolina is ready for your nonprofit. Let's build something great.
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