How to Form a South Carolina Nonprofit Corporation

Most nonprofits are 501(c)(3) corporations, meaning they're formed for religious, charitable, scientific, literary, or educational purposes and are eligible for federal and state tax exemptions. To create a 501(c)(3) tax-exempt organization, first you need to form a South Carolina nonprofit corporation. Then you must apply for tax-exempt status from the IRS and the State of South Carolina.

While the requirements for forming nonprofits vary, you can generally follow the steps below to create your South Carolina nonprofit.

1. Choose a Name for Your South Carolina Nonprofit Corporation

When picking a name for your nonprofit, keep in mind South Carolina's laws around nonprofit corporation names. You can find more guidance about names and nonprofits in the FAQs about business entities page of the South Carolina Secretary of State (SOS) website.

Your Nonprofit Name Must Be Distinguishable

Under South Carolina law, the name of your nonprofit corporation can't be the same as or too similar to an existing business's name on record with the SOS. These names include ones that are legal, reserved, registered, or fictitious. (S.C. Code § 33-31-401 (2025).)

You can check whether the proposed name for your nonprofit is available using the SOS's business name search.

Reserve Your Nonprofit's Name

You can reserve an available name for your nonprofit for 120 days. You can't renew the reservation. You're not required to reserve a name. This step is optional. (S.C. Code § 33-31-402 (2025).)

You can reserve your nonprofit name by filing an Application to Reserve a Nonprofit Corporate Name with the SOS. You must file the reservation by mail. As of 2025, the filing fee to reserve a name for your nonprofit is $10.

2. Appoint the Initial Directors for Your Nonprofit Corporation

Every South Carolina nonprofit corporation must have a board of directors. South Carolina law requires a minimum of three directors. The IRS also prefers that organizations seeking tax-exempt status have at least three directors. You should try to appoint an odd number of directors to prevent voting ties.

For the most part, your corporation's articles or bylaws can outline specifics for directors, such as:

• the number of directors (it can be a set number or a range)
• the rights, duties, and powers of directors
• the term of directors
• the qualifications for directors
• the election, designation, and appointment of directors, and
• the meetings of the board of directors.

(S.C. Code §§ 33-31-801 and following (2025).)

3. Prepare and File Your Nonprofit's Articles of Incorporation

You create your nonprofit entity by filing nonprofit Articles of Incorporation with the SOS. Your articles of incorporation must include the following information:

• the name of your nonprofit
• a statement as to whether your corporation is a public benefit, mutual benefit, or religious corporation
• the name and street address of your nonprofit's initial registered agent
• the name, address, and zip code of each incorporator
• a statement as to whether your nonprofit will have members
• provisions about the distributions of your nonprofit's assets upon its dissolution, and
• the street address of your nonprofit's principal office.

In the articles, you can also name your nonprofit's purpose and its initial directors. But you're not required to do so. The articles might ask you for additional information.

(S.C. Code § 33-31-202 (2025).)

Include IRS-Specific Nonprofit Language in Your Articles

To receive tax-exempt status from the IRS, you'll need to have certain specific language in your articles, including:

• a statement of purpose that meets IRS requirements
• statements that your nonprofit will not engage in activities unrelated to its exempt purposes or in prohibited political or legislative activity, and
• a dissolution clause dedicating the corporation's assets to another 501(c)(3) organization or to the government upon dissolution.

If you intend to apply for 501(c)(3) tax-exempt status with the IRS, then you must include a 501(c)(3) Attachment with your articles. The attachment includes all the required language above.

For more guidance, the IRS has published suggested language for corporations to use in their articles of incorporation. You can also find sample language for these clauses approved by the IRS in the Instructions for IRS Form 1023-EZ, (see Part II).

How to File Your Nonprofit's Articles of Incorporation With the SOS

You can find all the forms you need to incorporate your nonprofit on the downloadable paper forms page of the SOS's business filings website. You can also register your nonprofit online through the SOS's Business Entities Online filing system.

As of 2025, the filing fee for a South Carolina nonprofit corporation is $25.

4. Prepare Bylaws for Your South Carolina Nonprofit Corporation

Your nonprofit's incorporators or board of directors must adopt initial bylaws for your nonprofit corporation. Your bylaws contain the rules and procedures your corporation will follow for:

• holding meetings
• electing officers and directors
• adopting, amending, and repealing the bylaws, and
• taking care of other corporate formalities.

(S.C. Code § 33-31-206 (2025).)

You can draft the bylaws yourself. You can use free and inexpensive samples online (including our nonprofit bylaws form) to help you. You can also recruit an experienced business lawyer to draft the bylaws for your nonprofit.

You don't need to file your bylaws with the state—this document is your internal operating manual.

For more information on this nonprofit formation document, see our article about articles of incorporation, bylaws, and organizational minutes.

5. Hold a Meeting of Your Board of Directors

After incorporating your nonprofit, you should hold a board meeting. Your first board meeting is usually referred to as an "organizational meeting" because you're organizing the nonprofit.

If initial directors are named in your articles, then they'll hold this meeting at the call of a majority of the directors. If initial directors aren't named, then the incorporators must hold the meeting at the call of a majority of the incorporators.

The board or incorporators should take such actions as:

• electing the directors (if none have yet been appointed)
• approving the bylaws
• appointing officers
• setting an accounting period and tax year, and
• approving initial corporation transactions, such as opening a corporate bank account.

(S.C. Code § 33-31-205 (2025).)

After the meeting is completed, create meeting minutes that accurately record the actions taken by the board. You should set up a corporate records binder for your nonprofit to hold important documents such as your articles of incorporation, bylaws, and meeting minutes.

6. Apply for an EIN From the IRS

Your nonprofit corporation must obtain a federal employer identification number (EIN). You'll need an EIN to complete your application for federal tax exemption (discussed below).

You can obtain an EIN by completing an online EIN application on the IRS website. There's no filing fee.

7. Obtain the Necessary Business Licenses

Depending on the type of activities your nonprofit intends to carry on and where it's located, your nonprofit could need to obtain local and state business licenses or permits. Like most states, South Carolina doesn't require a general business license to operate in the state. However, your city or county might require your nonprofit to have a general license to operate within city (or county) limits. In addition, your nonprofit might need to apply for certain tax, professional, occupational, or other regulatory licenses.

Read our article on how to get a small business license in South Carolina for more details about licensing and permitting requirements in the state. For local licenses, check with the clerk or tax collector for the city or town where the nonprofit does business. For state license information, visit the South Carolina Business One Stop (SCBOS) website. The SCBOS has a Business Wizard that you can use to create a customized list of the local and state licenses, registrations, permits, and tax accounts your nonprofit might need.

8. Obtain Your Federal and State Tax Exemptions

After you've created your nonprofit corporation, you can obtain your federal and South Carolina state tax exemptions. Here are the steps you must take to obtain your tax-exempt status.

Some nonprofits decide to reach out to a business or tax attorney at this stage. While you can form a nonprofit on your own, you might also find it useful to consult with a legal or tax professional. A business lawyer can help you complete the necessary steps to form and manage your nonprofit.

File Your Form 1023 Federal Tax Exemption Application

To obtain federal tax-exempt status from the IRS, you'll need to complete and file IRS Form 1023, Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code. This long and detailed form asks for a lot of information about your organization, including its history, finances, organizational structure, governance policies, operations, activities, and more.

Smaller nonprofits might be eligible to file Form 1023-EZ, Streamlined Application for Recognition of Exemption under Section 501(c)(3) of the Internal Revenue Code. This application is a much simpler, shorter form that's filed online. Only smaller nonprofits—those with projected annual gross receipts of less than $50,000 and total assets of less than $250,000—are eligible to use the streamlined 1023-EZ application.

See the IRS website for more information on the Form 1023 and Form 1023-EZ filing requirements.

South Carolina State Tax Exemptions

South Carolina nonprofits should generally consider three types of taxes and their level of exemption from each. You'll file and pay taxes or apply for an exemption with the South Carolina Department of Revenue (SCDOR). You can file, pay, and apply for an exemption online using MyDORWAY.

South Carolina corporate income tax.Once you obtain your 501(c)(3) tax-exempt status from the IRS, your nonprofit is automatically exempt from corporate income tax in South Carolina. You should mail a copy of your IRS 501(c)(3) determination letter to the SCDOR for documentation purposes.

If your nonprofit has unrelated business income to report to the IRS through Form 990T, you must also file SC990-T with the SCDOR. A nonprofit's unrelated business income is taxable. When you file SC990-T, your nonprofit is automatically registered with the SCDOR.

Sales and use tax. To obtain an exemption from state sales taxes, you must file Form ST-387 with the SCDOR. Depending on your type of sales and activities, you might need to file Form ST-393 or ST-396. You can apply online for a sales tax exemption using MyDORWAY. You can find these forms and information about these tax exemptions on the SCDOR's applying for a sales and use tax exemption webpage.

Property tax. Your nonprofit can file for a property tax exemption with the SCDOR. You can apply online for a property tax exemption through MyDORWAY. Once your nonprofit has been granted an exemption for a property, you don't need to reapply each year for the same exemption.

Other State Reporting and Registration Requirements

In general, if your nonprofit intends to solicit contributions or have funds solicited on its behalf, you must register your nonprofit with the SOS. You must renew your registration every year. You can register your nonprofit online or mail a Registration Statement for a Charitable Organization to the SOS's Division of Public Charities. As of 2025, the fee to register your nonprofit is $50.

Your nonprofit must also submit an Annual Financial Report form or applicable IRS 990 form to the SOS each year.

Some nonprofits are exempt from registration requirements. For example, organizations that solicit less than $7,500 per year don't need to register with the SOS. In addition, organizations that solicit contributions only from members don't have to register as long as they don't use professional fundraisers.

(S.C. Code §§ 33-56-10 and following (2025).)

For more about registering nonprofits in South Carolina, see the charities section of the SOS website.

If your nonprofit plans to solicit or receive donations in other states, then you might have nonprofit filing and reporting obligations in those states as well. For more information about fundraising registration requirements in all 50 states, see Nonprofit Fundraising Registration Digital Guide, by Ronald J. Barrett and Stephen Fishman (Nolo).