Kentucky LLC vs South Carolina LLC (2026)
Written for owners based in Kentucky.
Verdict: for most owners, form where the business is based
South Carolina is a one-and-done state for filings: $110 for the articles and no annual report or annual fee afterwards, against $40 and at least $190 in Kentucky. Read that carefully. It holds only at the Secretary of State and only while the LLC stays a pass-through; elect corporate treatment and you file the CL-1 with a $25 initial License Fee, then an annual License Fee with a $25 minimum. Kentucky's $175 applies whatever the federal election. A South Carolina LLC used here still pays Kentucky $90.
Based in South Carolina? Read South Carolina LLC vs Kentucky LLC →
Compare Kentucky LLC vs South Carolina LLC on filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
By Edmond Hui · Last updated: September 23, 2026
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| Factor | Kentucky | South Carolina |
|---|---|---|
| Filing Fee | $40 | $110 |
| Processing Time | Same day to 3 business days | Not published by the state |
| Annual Report Fee | $15 | None |
| Annual Report Due | June 30 | None required |
| State Income Tax | Yes | Yes |
| Anonymous LLC | No | No |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A, you're in your home state | $90 + registered agent ~$150/yr |
Full fee breakdown for either state: Kentucky LLC cost and South Carolina LLC cost. Owner privacy options for either state: Kentucky anonymous LLC guide and South Carolina anonymous LLC guide.
Business Climate: Kentucky vs South Carolina
| Factor | Kentucky | South Carolina |
|---|---|---|
| 5-year business survival rate | 54.1% (#11 of 51) | 55.9% (#2 of 51) |
| Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months)) | +34.1% YoY (#26 of 51 by volume) | +14.7% YoY (#19 of 51 by volume) |
Sources: U.S. Bureau of Labor Statistics, Business Employment Dynamics · U.S. Census Bureau, Business Formation Statistics (BFS)
Compare LLC Costs: Kentucky vs South Carolina
Kentucky
South Carolina
A figure shown as "from" is the least the state can charge, not a price. Tennessee's report is $300 for up to six members and $50 for each member above six, its franchise tax is the greater of $100 or 0.25% of Tennessee net worth, Wyoming's report is the greater of $60 or $.0002 per dollar of in-state assets, Kentucky's entity tax is $175 up to $3 million of gross receipts and graduated above it, and New York's annual filing fee is graduated on New York source gross income. A total that contains one of those is shown as "from" for the same reason. Costs include every mandatory state charge: the filing fee, the report fee (annualised where a state files biennially), any state entity-level tax shown in its own row above, a one-time publication cost where the state publishes a rate for it, and any one-time registration charge a state requires before the LLC may trade. Two exclusions follow from that wording. Arizona and Nebraska require publication and publish no rate, so no newspaper cost is carried for either and their totals are not the whole cost. Alaska's $50 annual state business licence is a separate charge from the Secretary of State fees and is not carried here either. Annualising makes the 1, 3 and 5 year rows a cost of ownership rather than a payment schedule: a biennial state charges its whole report fee in the years it falls due and nothing in between. Entity-level taxes that only apply after a corporate election, or above an owner or income threshold, are excluded and flagged on the state's own cost page. New York's publication cost is carried at a $250 floor, roughly $200 of newspaper cost in a low-cost county plus the $50 Certificate of Publication fee. No county-clerk-designated New York City newspaper publishes a rate card, so the four-figure NYC estimates in wide circulation cannot be traced to a primary source and are not asserted here; budget for materially more than the floor if you file in a NYC county. Every fee was verified against the state's own fee schedule, statute, or revenue authority on 29 July 2026. Excludes registered agent and legal fees. For informational purposes only, not legal or tax advice.
Filing Fees & Formation Costs
Kentucky charges $40 to form an LLC, while South Carolina charges $110. Kentucky is $70 cheaper upfront. The cost that usually gets overlooked: if you form in South Carolina but operate in Kentucky, you must also register as a foreign LLC in Kentucky (a $90 filing) and maintain a registered agent in South Carolina (typically around $150 per year). That puts the realistic first-year cost of the South Carolina route at roughly $350, versus $40 for simply forming in Kentucky. Only one side of this comparison is knowable: Kentucky publishes a standard turnaround (same day to 3 business days), while South Carolina publishes no standard processing time, so the two can't be ranked against each other on speed.
Taxes: Kentucky vs South Carolina
Both Kentucky and South Carolina levy a personal income tax on pass-through business income, and your LLC's profits will be taxed where you live and operate. Forming in South Carolina doesn't change what a Kentucky-based owner pays. Kentucky levies a flat 4% personal income tax. Kentucky imposes the Limited Liability Entity Tax (LLET), $175 minimum per year.
Privacy & Asset Protection
Neither Kentucky nor South Carolina offers anonymous LLC formation: both states require owner or manager information on public filings. South Carolina requires managers to be listed on the Articles of Organization when the LLC is manager-managed, a public record. Business owners who prioritize privacy typically form a holding company in a state like Wyoming or New Mexico instead. Both states provide charging-order protection for LLC members, and for most small businesses the practical difference in asset protection between the two is minimal.
Annual Maintenance Costs
Kentucky LLCs file an annual report ($15, due June 30), and South Carolina LLCs file no annual report at all. If you form in South Carolina while operating in Kentucky, you maintain filings in both states, South Carolina asks for no report, but Kentucky still wants its equivalent for your foreign registration, and pay a South Carolina registered agent roughly $150 per year. Counting report fees, the agent and any entity-level tax, that brings the South Carolina route to roughly $165 a year, versus at least $190 to keep a domestic Kentucky LLC in good standing. The tax inside those totals: Kentucky imposes the Limited Liability Entity Tax (LLET), $175 minimum per year.
When South Carolina Actually Makes Sense
Forming in South Carolina makes sense in a few specific situations: your business genuinely operates in South Carolina, with a real office, employees, or property there, or you're relocating to South Carolina in the near future. For a typical small business based in Kentucky, none of these usually apply. Registering a South Carolina LLC to do business back home means $90 in Kentucky foreign-registration fees, on top of South Carolina's $110 formation fee, while Kentucky's own annual report runs $15 a year and is due June 30. When in doubt, form where you actually do business.
Frequently Asked Questions
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Sources
Each entry below is a document recorded in our verified sources, and each entry says what the document is. Some statutory text is read from an accurate mirror rather than from the state's own host, and those say so.
- sos.ky.gov/bus/business-filings/OnlineServices/Pages/default.aspxKentucky Secretary of State: business entity filings
- sos.ky.gov/bus/business-filings/Pages/Fees.aspxKentucky LLC filing fees
- sos.sc.gov/online-filings/business-entitiesSouth Carolina Secretary of State: business entity filings
- scstatehouse.gov/code/t33c044.phpSouth Carolina LLC filing fees
Edmond Hui · Founder, MyStateLLC
Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.