Forming a company can be your best option if you’re wanting to launch a business in South Carolina. A corporation is a separate legal entity from its owners, and as such, it is able to sue or be sued in its own name, own property, and engage into contracts. Due to the fact that the owners’ personal assets are segregated from the assets of the company, this offers liability protection for them. This article will walk you through the process of forming a corporation in South Carolina.
1. Pick a name for your business. The name of your corporation must be distinctive and not overly similar to any already-used company names in South Carolina. On the South Carolina Secretary of State’s website, you may see if the name you choose is available.
Articles of incorporation should be filed. The legal document that establishes your corporation is this one. The $135 filing fee is payable either online or by mail. The corporation’s name, goals, registered agent, and the quantity and kind of stock it is permitted to issue must all be listed in the articles of incorporation. 3. Create the company’s bylaws. Bylaws are the rules and guidelines that specify how your corporation shall conduct its business. They should detail how meetings will be conducted, directors will be chosen, and decisions will be made. 4. Acquire any required licenses and permits. You might require additional licenses and permits from the state or local government depending on the type of business you’re launching. To find out what licenses and permissions you require, check with the South Carolina Department of Revenue and the city or county where your business will be situated.
In South Carolina, an LLC is taxed as a pass-through entity, which means that both business profits and losses are reported on the owners’ individual tax returns. Although the LLC is not required to pay federal income tax, it is required to submit an informational return to the IRS. LLCs in South Carolina must also pay the Secretary of State a $50 yearly fee.
You must still submit a tax return to the IRS even if your LLC is not profitable for the year. This is so that the LLC can be taxed as a separate company from its owners. On the other hand, you might be able to claim any costs incurred in founding and running the firm on your personal tax return.
In South Carolina, an LLC license costs $110 to obtain. When you file your LLC’s Articles of Organization—the legal instrument that establishes it—with the Secretary of State, you must pay this charge.
In conclusion, if you follow these instructions, forming a corporation in South Carolina can be simple. Before establishing your business, it’s crucial to conduct your homework and confirm that you have all the required licenses and permits. Additionally, knowing how an LLC is taxed and the costs related to acquiring a license will help you decide on the ideal organizational setup for your company.