How to Start an LLC in South Carolina

How to Form an LLC in South Carolina | Complete Guide
A Step-by-Step Guide

How to Form an LLC in South Carolina

Forming an LLC in South Carolina is an easy process that can give your company personal liability protection and a well-organized framework. If you're new to business or a seasoned entrepreneur, taking the proper steps is important so you can satisfy all state regulations. This full guide will help you through the process of forming your LLC in South Carolina.

What is an LLC?

1

Limited Liability Protection

An LLC (Limited Liability Company) is a type of business entity that gives personal liability protection to its owners (known as members). That is, your home or vehicle assets are usually shielded from any debt of the business or business law suits.

2

Tax Advantages

LLCs also get pass-through taxation, meaning profits get taxed only once on the personal tax return of the members.

3

Management Flexibility

South Carolina LLCs provide flexibility in management structure, allowing you to choose between member-managed or manager-managed operations to suit your business needs.

Formation Process

Select a Unique Name for Your LLC

In naming your LLC, you have to make sure that it is unique and does not belong to any other company in South Carolina. You can verify name availability using the South Carolina Secretary of State's online database.

  • Required Words: Your LLC name must include "Limited Liability Company" or its abbreviations like "LLC" or "L.L.C."
  • Prohibited Words: Avoid using words like "Agency," "Department," or "Bureau" that could be confused with a government agency.
  • Name Restrictions: The name should not imply a government affiliation (e.g., "FBI," "Treasury," or "State Department").
  • Domain Name: It's also a good idea to check if your chosen name is available as a website domain to avoid losing the potential URL later on.

Select Your First Agent for Service of Process

Each LLC in South Carolina must have an agent for service of process. This person is needed to receive legal documents, tax notices, and government communications on behalf of your LLC. They are the official point of contact for legal situations in your state.

Agent Options

Your registered agent can be you, someone else in your LLC, or a professional registered agent service. If you decide to use a registered agent service, they need to have a South Carolina physical address and be open during regular business hours to accept documents.

Professional Services

Following are two top-recommended registered agent services:

Best South Carolina Registered Agent Services

ZenBusiness

ZenBusiness is recognized for making LLC formation easy and fast, with a hassle-free compliance service. Their registered agent service costs $199, and they provide a handy dashboard to keep all of your LLC documents in order.

  • Supports LLC formation in all 50 states
  • Ensures 100% compliance with state law
  • Offers excellent customer support and clear pricing

Best for: LLC Formation & Registered Agent Services

Price: $199 per year

Northwest Registered Agent

With more than 20 years of history, Northwest provides premium registered agent services for $125 annually. They are well-rated for customer support and emphasize security and privacy.

  • A+ BBB rating
  • High-end customer support
  • Has secure online access to documents

Best for: Experienced and Secure Registered Agent Services

Price: $125 per year

File Your Articles of Organization

To formally form your LLC in South Carolina, you must submit your Articles of Organization to the Secretary of State. You can submit this document online or by mail.

Filing Fee

The fee for filing the Articles of Organization is $110.

Processing Times

If you are filing online, the process should be completed promptly, usually in one business day. If filing by mail, allow around 5-7 business days for the process to complete.

Filing Options

  • Online: Filing online is the quickest and most convenient option.
  • Mail: You can send your documents by mail to the South Carolina Secretary of State.

By Mail Address:

South Carolina Secretary of State's Office
Attn: Corporate Filings
1205 Pendleton Street, Suite 525
Columbia, SC 29201

Once you've filed, your LLC is officially formed and you will receive a confirmation from the state.

Following Forming Your LLC

Following registration of your LLC, consider the following necessary steps:

Separate Personal and Business Finances

It's vital to keep your personal and business finances separate. Open a business bank account for your LLC to protect your personal assets.

Get an Accountant

Hiring an accountant can help with tax preparation and bookkeeping, making it easier to stay compliant and avoid penalties.

Obtain an EIN

You will require an Employer Identification Number (EIN) if your LLC will have employees or if you intend to have a business bank account. The IRS issues EINs at no cost.

Get Business Insurance

Insurance will cover your LLC from lawsuits, malpractice, and risks related to your business. You should also get workers' compensation insurance if you hire workers.

FAQs

What does it cost to establish an LLC in South Carolina?

The Articles of Organization filing fee in South Carolina is $110.

Is a DBA necessary for my South Carolina LLC?

A DBA is not required for most LLCs in South Carolina unless you intend to do business under a name other than your actual LLC name. If that is the case, you are required to file a DBA with the state.

How long does it take to process the Articles of Organization?

Online submissions are processed within the same or following business day, and mail filings take about 5-7 business days to process.

Do I have to file annual reports for my LLC in South Carolina?

Yes, South Carolina LLCs do have to file an annual report. There is no extra cost for this filing, but you must do it annually to maintain your LLC in good standing.

Can I create an LLC in South Carolina if I am not a resident of the state?

Yes, you don't have to be a resident of South Carolina to create an LLC there. But you do have to appoint a registered agent with a physical address in the state.

Can I rename my LLC after registration?

Yes, you can rename your LLC after it's been registered by filing an Amendment to the Articles of Organization with the Secretary of State and paying the fee.

What do I do if I don't have a registered agent for my LLC?

If your LLC doesn't have a registered agent, you can lose your LLC status with the state. A registered agent must be the one who receives important legal documents, and without one could result in losing deadlines and generating legal problems.

Ready to Start Your South Carolina LLC?

Creating an LLC in South Carolina is an excellent option for those who want to have personal liability protection and the ability to conduct business in any number of ways. By following these guidelines and being mindful of state laws, you can create your LLC easily and effectively.

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