How to Start Your LLC in South Carolina
Legal Bueno helps with everything you need to start your business. We take care of all the paperwork so you don't have to worry about it. Want to learn more about the process we handle? Keep reading!
Quick Summary:
- Filing Fee: $110
- Turnaround time: 1-2 business days
How do I start an LLC in South Carolina?
Thinking about starting an LLC? The process is pretty similar across the states. You'll start by picking a unique name for your business (you'll need to check to make sure it hasn't been taken!) and then filing some paperwork—usually called Articles of Organization or a Certificate of Formation—with your state's agency.
If you want to check the name availability for South Carolina, visit https://businessfilings.sc.gov/BusinessFiling/Entity/Search.
After that's taken care of, you'll want to draft a governing doc for your business called an operating agreement & find any licenses you might need. Just keep in mind that each state has its own little quirks, so it's always a good idea to double-check specific requirements for your area.
What are the costs & processing times of starting a business in South Carolina?
Here's the rundown for South Carolina:
- The filing fee is: $110
- There are ongoing fees of $0 (no fee and no information report, unless LLC is taxed as an S-Corp )
- It usually takes 1-2 business days if you're filing online or 3-4 business days (plus mail time) if by mail.
Why South Carolina is a great state for your LLC
Starting a company in South Carolina offers a multitude of benefits that can significantly enhance a new business's success. Here are some key advantages:
- Incentives and Exemptions: South Carolina's Department of Commerce provides a variety of incentives, including sales tax exemptions. These can help reduce both startup and operating costs, making it more financially viable for new businesses.
- Simplified Business Structure: Forming a Limited Liability Company (LLC) in South Carolina is generally the quickest and simplest method for entrepreneurs. The streamlined rules and regulations associated with LLCs make them ideal for startups and small to medium-sized businesses.
- Easier Compliance and Management: An LLC allows for straightforward management and compliance, reducing the administrative burden on entrepreneurs. This enables business owners to focus more on growth and less on bureaucratic processes.
- Tax Advantages: Filing taxes is made easier for LLCs, and there may be potential advantages in tax treatment that can further benefit businesses in South Carolina.
- Asset Protection: Establishing an LLC provides personal liability protection, ensuring that personal assets are safeguarded from business debts and liabilities. This is particularly important for entrepreneurs taking on financial risk.
- Low Startup Costs: With a low filing fee of $132, the initial investment required to set up an LLC in South Carolina is relatively minimal compared to many other states.
Overall, South Carolina’s business-friendly environment, combined with specific incentives and protections for LLCs, makes it an attractive destination for entrepreneurs looking to start a new venture.
Legal Requirements
Remember! Legal Bueno will handle all of these requirements for you, but if you're interested, here are the legal requirements for South Carolina:
Articles of Organization
The articles of organization must include:1. The name of the company;
- The address of the initial designated office;
- The name and street address of the initial agent for service of process;
- The name and address of each organizer;
- Whether the company is to be a term company and, if so, the term specified;
- Whether the company is to be manager-managed, and, if so, the name and address of each initial manager; and
- Whether one or more of the members of the company are to be liable for its debts and obligations.
Articles of organization may include:1. Provisions permitted to be included in the operating agreement; or
- Other matters not inconsistent with law.
S.C. Code § 33-44-203
Filing fee: $110
S.C. Code § 33-44-1204
Filing Process
After you've prepared the initial formation documents, you need to file it! Here is what South Carolina laws require for filing:
Articles of organization or any other record authorized to be filed must be in a medium permitted by the secretary of state and delivered to the secretary of state. Unless the secretary of state determines that a record fails to comply as to form with the filing requirements, and if all filing fees have been paid, the secretary of state must file the record and send a receipt for the record and the fees to the LLC or its representative.
S.C. Code § 33-44-206
Additional Legal Considerations
Here are some additional relevant laws that might be useful when operating your business in South Carolina:
Effect of operating agreement–nonwaivable provisions
S.C. Code § 33-44-103
Certificate of existence or authorization
S.C. Code § 33-44-208