An Article of Organization must be submitted to the Secretary of State if you want to establish a Limited Liability Company (LLC) in South Carolina. This paperwork, along with the required filing costs, formally establishes your LLC. An instruction manual for submitting an Article of Organization in South Carolina is provided below:
Select a Name for Your LLC in Step 1 To start, pick a distinctive name for your LLC. No other South Carolina LLCs with the same name should use it. On the South Carolina Secretary of State’s website, you may see if the name you choose is available.
Select a Registered Agent in Step 2 A registered agent is a person or organization that has been given permission to accept legal documents on your LLC’s behalf. The Article of Organization must specify a registered agent in South Carolina and include their name and address.
Step 3: Submit the Articles of Incorporation You need to fill out a form and pay the necessary costs in order to submit the Article of Organization. On the website of the South Carolina Secretary of State, the form can be downloaded. In South Carolina, an LLC must currently pay a filing cost of $110.
Obtain an EIN in Step 4 You must request an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) after your LLC has been approved. If you intend to hire workers, you must have this number for tax purposes.
Can I File My Personal Taxes And My LLC Together? No, you cannot file your personal taxes and LLC taxes at the same time. You must submit separate tax returns for your LLC and yourself because your LLC is a different legal organization. You must disclose your portion of the LLC’s gains and losses on your personal tax return if you are an LLC owner. What Happens If My LLC Makes a Loss?
You can write off any losses incurred by your LLC on your personal tax return. The income and losses of the LLC are transferred to the owners and reported on their individual tax returns in a process known as pass-through taxation. How Can I Pay Myself Out of My LLC?
You have a variety of options for paying yourself as an LLC owner, including salary or distribution. You must deduct payroll taxes like Social Security and Medicare if you pay yourself a wage. Payroll taxes are not applied to distributions that you take.
The answer is yes; such an LLC is referred to as a single-member LLC. The liability protection for the owner of a single-member LLC is the same as that for a multi-member LLC, but the tax treatment is different. The owner declares the profits and losses on their personal tax return and the IRS recognizes a single-member LLC as a sole proprietorship for tax reasons.
In conclusion, the first and most crucial step in creating an LLC in South Carolina is filing an Article of Organization. A distinctive name, appointing a registered agent, submitting the Article of Organization, and obtaining an EIN are all requirements. Owners of LLCs can write off losses on their personal tax return even if they cannot file both their LLC and personal taxes at the same time. A single-member LLC is permitted in South Carolina, and LLC owners may pay themselves through a salary or dividend.