How to Start an LLC in South Carolina: Step-by-Step Guide

Step 1: Name Your South Carolina LLC

Choosing a company name is the first and most important step in starting an LLC in South Carolina. Be sure to choose a name that complies with South Carolina naming requirements and is easily searchable by potential clients.

1. Follow the naming guidelines:

• Your name must include the phrase “limited liability company” or one of its abbreviations (LLC or L.L.C.).
• Your name cannot include words that could confuse your LLC with a government agency (FBI, Treasury, State Department, etc.).
• Restricted words (e.g. Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your LLC.
• Your name must be distinguishable from any other South Carolina limited liability company, corporation, limited partnership, or fictitious name (DBA).

2. Is the name available in South Carolina?Make sure the name you want isn't already taken by doing aBusiness Name Search在南卡罗来纳州的网站上。

To learn more about searching for aSouth Carolina LLC name, read our full guide. Find name ideas using our freeLLC name generator.

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FAQ: Naming a South Carolina LLC

Step 2: Choose a South Carolina Registered Agent

You arerequiredto appoint aSouth Carolina registered agentfor your LLC.

What is a registered agent?A registered agent is an individual or business entity responsible for receiving important tax forms, legal documents, notice of lawsuits, and official government correspondence on behalf of your business. Think of your South Carolina LLC's registered agent as your business's point of contact with the state.

Who can be a registered agent?A registered agent must be a resident of South Carolina or a corporation, such as aregistered agent service, authorized to transact business in South Carolina. You may elect an individual within the company including yourself to handle your business filings.

FAQ: Nominating a Registered Agent

Step 3: File the South Carolina LLC Articles of Organization

To register your LLC, you'll need to file the South CarolinaArticles of Organizationwith the Secretary of State. You can apply online or by mail.

Now is a good time to determine whether your LLC will bemember-managed vs. manager-managed.

For help with completing the form, visit ourSouth Carolina Articles of Organizationguide.

If you’re expanding your existing LLC to the State of South Carolina, you will need to form aforeign LLC.

FAQ: Filing South Carolina LLC Documents

Step 4: Create a South Carolina LLC Operating Agreement

A South Carolina LLC is not required to have an operating agreement, but it's a good practice for LLC membes to have one.

What is an operating agreement?An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

Why are operating agreements important?A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.

For more information on operating agreements, read ourSouth Carolina LLC operating agreementguide.

FAQ: Creating a South Carolina LLC Operating Agreement

Step 5: Get a South Carolina LLC EIN

You can get an Employer Identification Number (EIN) from the IRS for free. It is used to identify a business entity and keep track of a business’s tax reporting. It is essentially a Social Security number (SSN) for the company.

Why do I need an EIN?An EIN number is required for the following:

• To open abusiness bank accountfor the company
• For federal and state tax purposes
• To hire employees for the company

Where do I get an EIN?An EIN is obtained from the IRS (free of charge) by the business owner after forming the company. This can be done online or by mail.

FOR INTERNATIONAL APPLICANTS:Youdo not need an SSNto get an EIN.Learn more here.

FAQ: Getting an EIN

How to Maintain Your LLC

South Carolina Annual Report

LLCs taxed as a C corporation or an S corporation must file an initial report within 60 days of formation usingForm CL-1. Then, an annual report is due alongside the LLC’s state tax return each year.

LLCs taxed as disregarded entities or partnerships do not have to file an annual report.

Keep Your Company Compliant

South Carolina Business Permits and Licenses

To operate your LLC, you must comply with federal, state, and local government regulations. Fees and requirements for licenses and permits will vary depending on what sort of business license you need.

Find out how to get the necessary business licenses and permits for your LLC with ourSouth Carolina Business Licenseguide.

South Carolina LLC Tax Filing Requirements

It's important to stay up to date onSouth Carolina LLC taxes.

Depending on the nature of your business, you may be required to register for one or more forms of tax:

Sales Tax

If you are selling a physical product, you’ll typically need to register for aseller's permitthrough theSouth Carolina Department of Revenuewebsite.

South Carolina’s base state sales tax is 6%. Counties can add an additional local sales tax of up to 1%.

Employer Taxes

If you’re hiring employees, you’ll need to register for bothUnemployment Insurance Taxwith the South Carolina Department of Employment and Workforce as well as Employee Withholding Tax with theDepartment of Revenue.

Income Tax

State:
In South Carolina, individual income taxes range from 0% to 6.5% depending on your LLC’s income.

State tax returns are due each year by April 18. To calculate your tax or determine your tax bracket, visit theSouth Carolina Department of Revenue website.

Federal:
You’ll also need to report your federal income tax using eitherForm 1065(multi-member LLC) orForm 1040 Schedule C(single-member LLC).

Hiring Employees in South Carolina

If you plan to hire employees for your South Carolina LLC, stay compliant with the law by following these steps:

• Verify that new employees areable to work in the US
• Report employeesas "new hires" to the state
• Provideworkers' compensationinsurance for employees
• Withhold employee taxes
• Printworkplace compliance postersand place them in visible areas of your workspace

Find more information at theState of South Carolina website.

South Carolina Business Resources

References

• South Carolina Business One Stop
• South Carolina LLC Statutes
• South Carolina Small Business Resources
• Understanding South Carolina LLC Laws
• South Carolina LLC
• South Carolina LLC Dissolution