There is no minimum age requirement in South Carolina to create an LLC. Therefore, legally speaking, a minor may own an LLC in the state. However, when a juvenile is involved in business ownership, there are significant legal difficulties that come up. For instance, minors cannot sign legally binding contracts because they are not yet considered adults. Without the approval of their parents or guardians, they are also not allowed to legally sign contracts or take part in other economic operations.
When a minor owns an LLC, management of the business becomes another concern. According to South Carolina law, LLCs must have a minimum of one manager who is qualified to handle the company’s legal and financial affairs. Minors are not permitted to operate an LLC since they are unable to form legally enforceable contracts. As a result, either a parent or guardian could handle the account, or an adult may be chosen to do so.
Regarding the remaining inquiries, South Carolina mandates that LLCs submit an annual report to the Secretary of State’s office. The registered agent, members, and managers of the LLC are all mentioned in the annual report. The cost of filing the annual report is determined by the revenue of the LLC and varies. If the annual report is not submitted, the state may impose fines and dissolve the LLC.
South Carolina requires LLCs to seek a license or permission in order to conduct business there. Depending on the type of business and the area, different regulations apply. A restaurant would require a food service licence, whereas a retail store would require a retail license. LLCs can use the South Carolina Business One Stop (SCBOS) website to apply for the required licenses and permits.
Lastly, South Carolina does not require an LLC license. However, in order to create the legal business entity, LLCs must submit Articles of Organization to the Secretary of State’s office. Articles of Organization must be filed for a charge of $110. LLCs might also need to apply for a free Federal Employer Identification Number (FEIN) from the IRS.
In conclusion, although minors are legally permitted to hold an LLC in South Carolina, it is not advisable owing to restrictions and legal difficulties. It is better if a parent or guardian manages the business and makes all financial and legal decisions. Additionally, South Carolina requires LLCs to register with the Secretary of State’s office, submit yearly reports, and acquire business licenses. To avoid fines and preserve the reputation of the company entity, LLC owners must adhere to these rules.