TaxTrack guide · Updated September 24, 2026

Does a South Carolina S corporation have to file with no income?

Short answer: Yes. SCDOR says the S Corporation Income Tax Return (SC1120S) is due annually regardless of any income or business in the period, and the corporate license fee (minimum $25 a year) still applies. An inactive company keeps these obligations until it is formally dissolved.

This is good news in one way: a year with no income is usually quick to file, and filing it stops that year from becoming a problem later.

What an inactive S corporation still owes

An SC1120S for each year, even with no income
The corporate license fee: 0.1% of capital stock and paid-in surplus plus $15, minimum $25 a year
Business personal property returns for any equipment it still had

Stopping the clock

These obligations continue while the corporation legally exists. If the business is truly finished, formally closing it is what stops new years from piling up.

TaxTrack year-by-year timeline showing years with no operations where a return may still be due — TaxTrack marks years with no operations where a return and license fee may still apply. Example inputs.

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Common questions

Is there a penalty for not filing a no-income SC1120S?

Late filing and payment penalties are percentages of the tax due, so with no tax due they are small or zero, but the license fee and the missing return still have to be dealt with.

What is the minimum license fee?

$25 a year.

Sources

Sources checked September 24, 2026.

Not tax, legal or accounting advice. TaxTrack by ExpenseTrack gives estimates for general information and planning only. It estimates and organizes; it does not prepare or file returns. Actual tax, penalties, interest and reinstatement requirements are determined by the South Carolina Department of Revenue, county offices and the Secretary of State. Talk to a qualified CPA, enrolled agent or tax attorney about your situation.