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SCDOR-111 Instructions Register online at MyDORWAY.dor.sc.gov/register South Carolina Department of Revenue | dor.sc.gov |August 2023
Enlarge image | SCDOR-111 Instructions Register online at MyDORWAY.dor.sc.gov/register South Carolina Department of Revenue | dor.sc.gov |August 2023 |
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Contents
Entity Registration Information � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �1
Tax Types � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �1
Type of Ownership � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �2
Incorporation Information � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �3
Owner, Officer & Member Information � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �3
Business Addresses � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �3
Account Details � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �4
Account Details - Withholding � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �5
Nonresident Withholding Exemptions � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �7
Banking Information � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �7
Business Contact Information � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �7
Signatures, Titles & Dates � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �7
Additional Resources � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �8
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Entity Registration Information
Tax Types
Select the account types you're applying for. You must pay any applicable license fee before the SCDOR
processes your application and issues your license.
Sales & Use Tax
The Sales & Use Tax category contains several Sales & Use subtypes. Included in this category, for the
purpose of the SCDOR-111 application, are Accommodations, Artist & Craftsman, Aviation, Max Tax,
Retail, and Use Tax. See Section D, Box 9 for more details.
Withholding Tax
Withholding Tax is taken out of employees wages to go towards the employees' total yearly Income
Tax liability. Every employer/withholding agent that has an employee earning wages in South Carolina
(and who is required to file a return or deposit with the IRS) must file a Withholding Tax return with the
SCDOR for any taxes that have been withheld for state purposes. South Carolina requires withholding
from:
● wages
● prizes
● royalties
● winnings
● nonresident contractors (for contracts exceeding $10,000)
● rental payments made to nonresidents who own five or more residential units or one or more
commercial properties in South Carolina
● net proceeds going to nonresident sellers of real estate and associated tangible personal
property located in South Carolina
Wages are taxed in the state in which they are earned unless the employee is working in a state that
does not withhold state Income Tax. If the employee is working in South Carolina, regardless of where
they are a resident, the income earned in South Carolina is taxed by South Carolina. If a South Carolina
resident is earning wages in a state that does not have state Income Tax, the withholding should be for
South Carolina�
Nonresident Withholding Exemption
South Carolina requires employers to withhold Income Tax from certain payments made to
nonresidents. Nonresidents who have activity but no employees in South Carolina can be granted an
exemption from this requirement. Provide a completed I-312, Affidavit of Registration, to the employer
or withholding agent with whom you are contracting. Do not submit the I-312 to the SCDOR. The
SCDOR will forward you a letter of verification upon registration.
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Type of Ownership
Box 1
Select the appropriate option to indicate type of ownership. Corporations that conduct business in
South Carolina as well as LLCs or LLPs, must first register and pay with the Office of the Secretary of
State at least 30 days prior to submitting the SCDOR-111 application.
If your ownership type is LLC, indicate the filing method of Corporation, Partnership, or Single Member
disregarded entity. This filing method must be approved by the IRS. Once IRS election has been granted,
forward that information to the SCDOR. If the LLC is a disregarded entity, indicate Single Member in Box
1 and provide single member information in Section B.
Corporation
A corporation is a business formed and authorized by law to act as a single taxpayer, although
constituted by one or more persons, and is legally endowed with rights and responsibilities. The SCDOR
advises you to consult a lawyer when organizing a corporation to assure full compliance with state and
federal laws.
Limited Liability Company (LLC)
A limited liability company is an unincorporated business association that provides its owners
(members) limited liability and flexible management and financial alternatives. An LLC provides the
limited personal liability of corporations. An LLC can elect to be taxed as a corporation. A multiple-
member LLC not taxed as a corporation is taxed as a partnership.
● Note on Single Member LLCs: A Single Member LLC that does not elect to be taxed as a
corporation for federal Income Tax purposes is said to be "disregarded" for state tax purposes,
in the sense that it is not considered to be an entity separate from its owner. The revenue,
expense, income, assets, liabilities, and equity of the disregarded entity will flow up to the owner
from the corporation as if it were a division of the owner. Therefore, a Single Member who is a
corporation reports income from the Single Member LLC as income from one of its divisions. For
an individual member, income from a Single Member LLC is most likely Schedule C income.
Partnership
A partnership is a legal entity that is jointly owned by two or more entities. As in the sole proprietorship,
the owners are personally responsible for all debts of the business, even those in excess of the amount
invested in the business.
Sole proprietorship
A sole proprietorship is a business owned by an individual who is solely responsible for all aspects of
the business. The owner is personally responsible for all debts of the business, even in the excess of the
amount invested in the business.
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Incorporation Information
Box 2
Enter the FEIN or SSN to be utilized for registration.
● FEIN - Apply for an FEIN using Form SS-4, available at irs.gov.
● SSN - When applying as a Sole Proprietorship, enter your Social Security Number. See the Social
Security Privacy Act on the SCDOR-111 for more information. Sole Proprietors registering for
Withholding are required to obtain an FEIN.
Box 3
Enter your business's legal name and any applicable "Doing Business As" (DBA) name.
Box 4
Indicate the status of your CL-1 (Initial Report of Corporations) fee. This is only applicable to corporation
tax status�
Box 5
Enter the entity's state and date of incorporation.
Owner, Officer & Member Information
Enter the following information
● SSN
● printed name
● title
● phone number
● home address
● percentage of ownership for all owners, partners, officers, and members.
Do not include limited partners.
Business Addresses
Mailing
Enter the complete mailing address for the business.
Location and Physical Address
Enter the complete physical location of the business, including any suite or unit letters or numbers. This
address cannot be a PO Box or any other mail service center address. If your business is located in a
municipality, you're required to enter its municipality.
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Account Details
Retail License - $50, Artist & Craftsman's License - $20, Use Tax Certificate - No Fee
(License fees are non-refundable)
Box 6
Describe your main business activity
● Retail - Describe the products to be sold (apparel, furniture, cars, groceries, etc.).
● Manufacturing - Describe the products to be manufactured.
● Service - Describe the type of service offered.
Box 7
Enter the opening date of the account
● Retail and Use Tax accounts cannot be issued more than 90 days from the date of the
application.
● For Use Tax accounts, enter the date of registration.
● For Accommodations, Artist & Craftsman, Aviation, Max tax, or Retail Tax accounts, enter the first
date of the anticipated sales or the first date the Retail License is needed to purchase supplies or
products.
Box 8
Select your filing frequency
● Monthly - Accounts are required to file monthly returns unless they are utilized for seasonal or
casual sales.
● Seasonal - Accounts that only make sales in specific months must indicate the months they plan
to be active.
Accounts are required to file a return by the 20th of the month following the active month, even if no
sales were made If the 20th falls on a weekend or holiday, returns are due on the next business day.
Box 9
Select your Account Subtype
Accommodations
● If you rent out rooms or spaces at hotels, campgrounds, boarding houses, mobile home parks,
etc., you are required to obtain a Retail License.
● The rental of transient accommodations is subject to a 2% Accommodations Tax in addition to
the 5% Sales Tax, and any applicable Local Tax.
● Rentals of the same room to the same person for at least 90 continuous days are not subject to
Accommodations Tax.
● If you rent a room in the house in which you live, and the house has less than six bedrooms, you
are exempt from the Accommodations Tax.
● If you rent transient accommodations for no more than one week each calendar quarter, you are
not required to obtain a Retail License, but you still must report and pay Accommodations Tax.
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Artist & Craftsman
● Artist and crafters sell products that they have created or assembled at arts and crafts show and
festivals in South Carolina. They may obtain a permanent Retail License from the SCDOR for $50,
instead of an Artist and Craftsman License.
● Artists and crafters must charge and collect the 6% statewide Sales & Use Tax along with any
applicable Local Tax. Generally, all retail sales are subject to Sales Tax.
Aviation Tax
Sales & Use Tax is imposed on aviation gasoline sold for use in airplanes.
Max Tax
This is due on boats, airplanes, self-propelled light construction equipment with compatible
attachments limited to a maximum of 160 net engine horsepower, and other items not subject to the
Infrastructure Maintenance Fee.
Retail
Sales Tax is imposed on the sales at retail of tangible personal property and certain services.
Use Tax
Use Tax is imposed on the storage, use, or consumption of tangible personal property on which South
Carolina Tax has not been previously paid.
Box 10
Select the appropriate option to indicate if your business sells tobacco products. Visit dor.sc.gov/policy
for additional information regarding tobacco products.
Box 11
Select the appropriate North American Industry Classification System (NAICS) Code to indicate your
type of business. Find more information about NAICS codes on NAICS.com/search
Box 12
Select the appropriate options to indicate which of these items will be sold, or if the entity is providing
a service to wireless users in South Carolina.
Box 13
Select the appropriate option to indicate how and where the sales will be made.
Account Details - Withholding
Box 14
Enter the anticipated date of first payroll. This date will be used as the open date of the Withholding
account. The quarter where this anticipated date falls will be the first quarter that a Withholding Tax
return is due. If payroll occurs in a later quarter, a quarterly Withholding return must still be filed for the
quarter containing the open date.
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A closed Withholding account can only be reopened if done so in the same calendar year it was closed.
To reopen, enter REOPEN and the reopen date. Then enter the closed account's file number in Box 15.
Box 15
Sole Proprietors registering for Withholding Tax are required to obtain an FEIN.
Box 16
Select the residency status of the employer or Withholding agent. Residency status determines when
Withholding payments are remitted to South Carolina.
● Resident Business - The principal place of business is inside South Carolina. Resident employers
or Withholding agents are required to pay Withholding Tax at the same time that federal
payments are due.
● Nonresident Business - The principal place of business is outside South Carolina. Nonresident
employers or Withholding agents are required to pay either quarterly or monthly. If the South
Carolina state tax liability is less than $500 for the quarter, the payment is due by the last day
of the month following the end of the quarter. If the liability reaches $500 or more during the
quarter, the payment is due by the 15th of the following month.
Box 17
Select the appropriate filing frequency for Withholding Tax returns. Employers or Withholding agents
are considered quarterly return filers unless all of their employees are household employees, farmers,
fishermen, ministers, or performed other services listed in SC Code Section 12-8-520 (D).
See Form 105, SC Withholding Tax Information Guide, available at dor.sc.gov/forms, for information
about Withholding payment frequencies. Returns are required for every active period that the
Withholding account is open even when there are no withholding or employees.
● Quarterly - file returns for every quarter.
1st quarter January, February, and March WH-1605 Due April 30
2nd quarter April, May, and June WH-1605 Due July 31
3rd quarter July, August, and September WH-1605 Due October 31
4th quarter October, November, and December WH-1606 Due January 31
● Annual - file return for each calendar year
■ January through December WH-1606 Due January 31
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Nonresident Withholding Exemptions
Provide the nature of your business and select the appropriate option.
Banking Information
Box 18
Provide the name, phone number (including area code), and email address of the financial institution
with whom you are conducting business.
Business Contact Information
You must submit a completed and signed SC2848, Power of Attorney and Declaration of Representative
along with your application.
Box 19
Provide the name, phone number (including area code), and email address of the contact person for
your business.
Signatures, Titles & Dates
The application must be signed by all owners, partners, and corporate officers. The SCDOR will reject
the application if you omit any required information, including signatures.
Additional documentation that may be included with your application
● Articles of Organization
● IRS letter confirming FEIN assignment
The fastest, easiest way to complete this registration is using our free online tax portal, MyDORWAY at
dor.sc.gov/register.
If you register by paper, mail your completed SCDOR-111 along with any applicable license payment
(payable to SCDOR) to: SCDOR, PO Box 125, Columbia, SC 29214-0850.
Reasons your application could be rejected or delayed:
● License fee is not submitted with application.
● Location address, main business type, account commence date, date of first payroll, or signature
omitted.
● The physical address of your business is in South Carolina and the ownership type of the LLC/LLP
or Corporation is not registered with the South Carolina Secretary of State.
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For more information on
● Starting and running a new business in South Carolina, visit MyDORWAY, including tutorials, visit
dor.sc.gov/MyDORWAY
● Filing and paying business taxes, visit dor.sc.gov/biz-services
● Tax seminars & workshops, visit dor.sc.gov/ted
Questions? We're here to help. Contact us at RegistrationForTaxes@dor.sc.gov or 1-844-898-8542�
Additional Resources
● Register your business with the South Carolina Secretary of State's office at sos.sc.gov
● Learn more about federal tax laws on the Internal Revenue website at irs.gov
● Find more business information at South Carolina Business One Stop at scbos.sc.gov
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