Tax Law Insights

The State of South Carolina has now adopted legislation allowing “pass through” entities to elect each year to be taxed at the entity level on their active trade or business income instead of having their owners taxed at the individual level on this income. This includes partnerships, S-corporations and LLCs taxed as partnerships or S-corporations.  This election can be filed for tax years beginning after December 31, 2020.

South Carolina has now joined a growing number of states that have enacted federal state and local tax “workaround” legislation, and which shifts state ...