Start a Business in South Carolina
Corporate Compliance by Local Corporate Guides®
Starting a business in South Carolina can and should be easier than you think. You file simple forms with the secretary of state, and your business is formed! Obviously there’s a few more things than that, but if you’d like to start your own business yourself, you will find it easy to hire us as your registered agent and you’ll find all the forms you could file to start a business in South Carolina, along with great filing instructions on the quickest and cheapest ways to start your business in South Carolina.
How to Start a Business in South Carolina
You file articles of incorporation for a South Carolina corporation or articles of organization for a South Carolina LLC with the SC Secretary of State.
You obtain a federal tax ID number (FEIN or EIN) with the IRS after you have confirmation and filed articles from the State of South Carolina showing your approved South Carolina business.
Opening a business banking account under your new South Carolina business name should be easy with these two items.
If you’re going to have employees or need to withhold sales tax, you will probably need to register with the SC department of revenue. We provide all these links in your online account.
If your business trade requires a license, you’ll have to apply for a license with the South Carolina licensing board. (Most businesses don’t.) But if you do, these quick links and contact details are in your online account. Some local cities or counties have a general license, but most don’t. You obtain a local trade license if the city or county you’re going to be working in requires it.
If you’re going to have an office or shop you might need an approval from the city zoning for your type of business in that location.
If you get overwhelmed, just get your business pulling in money and worry about regulations later.
Are You A Do-It-Yourselfer? You Can Save Some Money:
If you want to start a business in South Carolina yourself, you can just hire us as your South Carolina registered agent, and you’ll instantly have the South Carolina LLC or corporation forms to file along with filing instructions on the quickest, cheapest, and most efficient way to incorporate a South Carolina corporation or form a South Carolina LLC. You’ll get the ongoing support of our online tools, reminders and the support of a professional South Carolina registered agent service.START YOUR SOUTH CAROLINA BUSINESS TODAY
South Carolina LLC vs Corporation
Most business owners that choose to start a corporation are seeking to grow large companies and want the option of selling stock to investors. Also, the well-established management structure of a corporation can be very appealing. LLCs are great for small businesses because they’re easier to maintain. Plus, LLCs offer flexible management and great tax options.
But, what about South Carolina? Any pros and cons for a South Carolina LLC vs a SC corporation?
In terms of initial filing, there is an advantage to starting a South Carolina LLC versus a South Carolina corporation. Corporations must have their formation papers signed by a state licensed attorney—a small wrinkle, but it’s something LLCs don’t have to worry about. Initial costs tend to be cheaper for many LLCs as well. The Articles of Organization and Articles of Incorporation both cost $110 to file.
However, S and C corporations also must file an initial report with a minimum fee of $25.
During tax season, C corporations are subject to a corporate income tax rate of 5%. South Carolina S and C corporations will also need to pay an annual license fee—which includes an annual report. The license fee is based on capital and paid-in surplus, and there’s a $25 minimum. LLCs that aren’t taxed as an S or C corp won’t have to worry about an annual license.
If you want a corporation, you file South Carolina Articles of Incorporation:
The South Carolina articles of incorporation cost $135 with the South Carolina Secretary of State. This include the fee to file your initial report with the state. We custom draft your South Carolina articles of incorporation when you hire Northwest to start your South Carolina business.
The basic requirements of South Carolina corporations are:
- An incorporating South Carolina ending such as Inc, corporation, or incorporated;
- An amount of South Carolina corporation shares you would like to authorize;
- The class of the shares;
- The date you would like the SC corporation executed;
- The name, address and signature of at least one South Carolina incorporator;
- The registered agent of the proposed South Carolina corporation;
- The signature of a South Carolina licensed attorney.
South Carolina requires original ink signatures on SC incorporation filings. We have our SC licensed attorney sign the filing so you don’t have to worry about finding someone and paying them a fortune to sign a form.
The filing confirmation will be mailed to the address of the person who filed the documents.
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If you want a LLC, you file South Carolina Articles of Organization:
To form a South Carolina LLC, you file articles of organization and pay a $110 filing fee.
The basic requirements of South Carolina LLC filings are:
- The business name must have a limited liability company ending or variation of it.
- New South Carolina LLCs name must be different than already registered South Carolina companies.
- Duration of the South Carolina LLC is perpetual unless you check the box to choose a specific duration.
- The South Carolina registered agent and the physical address.
- The South Carolina designated (principal) office address.
- The name, address, and signature of the organizer(s).
- If the limited liability company is to be managed by one or more managers, you must check a box and list the name and address of each manager.
- The articles of organization are effective when filed, unless you specify a date.
South Carolina requires original ink signatures on new SC LLC filings. You’ll get a filing confirmation mailed to the address on the filing after the state approves it.