In South Carolina, establishing a sole proprietorship is a rather easy process. A sole proprietorship is a type of business organization where one person owns and runs the company alone. Due to the lack of a separate legal entity between the owner and this kind of business, the owner is personally liable for all obligations and liabilities of the enterprise. This article will walk you through the process of forming a sole proprietorship in South Carolina.
Select a business name in the first step. Choosing a company name is the first step in establishing a sole proprietorship in South Carolina. The name cannot be used by another company in the state already. Utilizing the South Carolina Secretary of State’s Business Entity Search tool, you may determine whether the name is available.
Step 2: Declare Your Company
The Secretary of State’s Office in South Carolina is where you must file your business registration. Through the Secretary of State’s website, you can register online. The enrollment cost is $10.
Step 3: Acquire Required Licenses and Permits You might require specific licenses and permits from the state, county, or local government depending on the kind of business you intend to run. For instance, the South Carolina Department of Health and Environmental Control may require a food service permit if you intend to sell food. You could require a permission from the South Carolina Department of Revenue if you intend to sell alcohol.
In South Carolina, is a Business License Required to Sell on Etsy? The South Carolina Department of Revenue will issue you a retail license if you want to sell on Etsy in South Carolina. You can collect and send the sales tax from your purchases with this license. Through the website of the South Carolina Department of Revenue, you can apply for this license online.
Obtain an EIN in Step 4 The Internal Revenue Service (IRS) issues each business an individual nine-digit number known as an Employer Identification Number (EIN) for tax-related purposes. Although it is not necessary for sole proprietorships to get an EIN, it is advised if you want to hire staff or open a company bank account. The IRS offers an EIN for no charge.
In SC, how much does an EIN cost?
In South Carolina, getting an EIN is free of charge.
Pay quarterly taxes in step five. You are liable for paying quarterly estimated taxes on your business income if you operate as a lone proprietor. Through the website of the South Carolina Department of Revenue, you can make these payments online.
Step 6: Submit a 1099 You must submit a 1099 form with the IRS and give a copy to the independent contractor if you pay them more than $600 in a calendar year. A 1099 form can be submitted electronically via the IRS website.
Finally, establishing a sole proprietorship in South Carolina is a simple procedure. You must select a business name, register your company, receive all appropriate permits and licenses, apply for an EIN if required, pay quarterly taxes, and file a 1099 if required. You can start your own business in South Carolina by following these instructions.
You must submit an application for a retail license with the South Carolina Department of Revenue in order to obtain a wholesale license there. The application will ask for information like your business name, address, and tax identification number, and you may submit it online or by mail. Once authorized, you’ll be able to buy products at wholesale costs from distributors and producers and resale them to clients.