A “doing business as” (DBA) registration enables a business to use a name other than that of the owner. Depending on the jurisdiction, South Carolina’s DBA filing fees change. The cost ranges between $10 and $25 on average. The county clerk’s office where the business is located is normally where this charge is paid.
In South Carolina, registering a DBA is a rather straightforward procedure. The company owner must first select a name that is not being used by another company in the state. The DBA form must then be submitted to the county clerk’s office. The business owner can start using the new name as soon as the form is submitted and the money is paid.
Individuals who own and run their own businesses are known as sole proprietors. They do not pay income tax on their business income because they are not regarded as workers. The income from their firm is instead reported on their personal income tax return. The self-employment tax, which covers both the employer and employee portions of Social Security and Medicare taxes, must still be paid by them.
You do not need to register your business if you are self-employed and conducting business under your own name. However, you must submit a DBA if you are doing business under a different name. Additionally, you must register your business with the state if you intend to recruit staff or offer goods or services that are subject to sales tax.
South Carolina has a number of legislative criteria to meet before starting a business. You must first decide on a type of company entity, such as a corporation, LLC, partnership, or sole proprietorship. The next step is to register your company with the Secretary of State’s office and secure any licenses and permissions required by your sector. If you intend to hire workers, you must also obtain an Employer Identification Number (EIN) from the IRS.
In conclusion, registering a DBA in South Carolina is inexpensive, and the procedure is simple. Despite not paying income tax on their business profits, sole owners must pay self-employment tax. You must submit a DBA if you are self-employed and conducting business under a different name. In South Carolina, opening a business entails selecting a business structure, registering with the Secretary of State’s office, getting licenses and permits, and, if required, obtaining an EIN.