Starting a business in South Carolina can be relatively straightforward. Whether you are considering a new business by starting a sole proprietorship, partnership, or corporation, you have one primary step—master how to start an LLC in South Carolina.
If you don’t have the knowledge to navigate the process on your own, this guide will help you determine whether to form an LLC or not and at what level the company should be formed.
There are a few things to consider before beginning the LLC formation process; however, some of these things can be done concurrently with the rest of the process.
For example, you will have to choose what name you want for your business. The choice of the business name is probably best done at the same time as choosing your business structure because it is possible to do both simultaneously.
Steps to Start an LLC in South Carolina
1. Name your South Carolina LLC
As was mentioned above, you should choose a business name to be used by your LLC. The name can be as long or short as you want, as long as it is clear. Most people opt for three to four syllables (for simplicity of pronunciation). You can also choose a word that is followed by a proper noun such as: “The South Carolina Trucking LLC”. This will help your clients and customers remember what you do.
A unique name will help you to establish strong brand recognition for your company. A memorable company name is important for the success of your business in addition to your ability to attract new clients, employees, and investors.
Once you have decided on a name, you can check to see if the name is available by visiting the South Carolina Secretary of State website. If the name you have chosen is not available, you should consider choosing something else.
2. Reserve the Name
Once you have completed the name selection, you should reserve the name with the Secretary of State if you want to exercise any rights associated with that name. If you don’t reserve a name, most likely someone else will use it to start a business. This is the best way to prevent someone from starting a competing business, in addition to choosing an available name.
If you have chosen a name that is available, you should reserve it on the website of the Secretary of State. Alternatively, you can also reserve your name with a company registry agent in South Carolina.
3. Find a Registered Agent for the South Carolina LLC
Your registered agent is a person who will be responsible for receiving any official legal documents on behalf of the business. It is important that you do not rely on anyone in your company to be the registered agent.
The registered agent is a separate individual who you can contact when you need to communicate with the state or if there are any legal documents that need to be served to your LLC. You should also make sure they are someone who can handle this job properly and reliably because they are the only person you have to rely on.
When selecting your registered agent, you should carefully consider the best choice for this role. In this context, it is important to choose an individual who has a professional and reputable reputation and they are someone you know well enough to be able to give them this additional responsibility.
Another benefit of having a registered agent is that they will keep in contact with your company and let you know if there are any issues with your company registration or at any point in the future.
The registered agent will serve as a communication channel between your business and the state government. This means that if you are ever in a situation where there is an official notice required to be delivered to your business, they will be the one who receives it on behalf of your company and delivers it to you.
4. Start the Filling for South Carolina Articles of Organisation
Now that you have chosen your business name, and registered agent and filed for articles of organization with the Secretary of State, you should start filling out the forms. This will gather information about you and your business as well as provide information about your company’s purpose and its owners.
The more detailed you are during this process, the better your LLC will be. It is important to indicate where your business is incorporated and what kind of business you are going to conduct because this information will be required by the state in order to provide essential rights and privileges for your company.
5. Get Your Federal Employer Identification Number (EIN)
The next step in the process of starting your LLC is to get a Federal Employer Identification Number (EIN) for your LLC. When you register for a EIN, you will be issued a unique number that is required to do business in the United States. An EIN is also needed by most US employers to file their payroll taxes and make things more convenient for the business.
It is recommended that you get your EIN as early in the formation process as possible so that you can use it before you actually start doing business. The easiest and most convenient way to get an EIN is to either call or file online through the IRS website.
6. Understand South Carolina Taxation Options
There are several forms of taxation that your business can choose to pay under South Carolina law. Understanding the different types of taxes applied to your business is important because it helps you determine the best way to pay taxes, so you can operate your business effectively and make the most of your company profits.
The most common type of business tax is the corporate income tax, which is a tax that applies to businesses based in South Carolina. The corporate income tax rate in South Carolina is 5.0 percent. In addition to the corporate income tax, there are several additional taxes that apply to your business. Some of these include the sales tax and use tax.
Starting your LLC with ease depends on lots of factors including the type of business you want to run. The next thing to consider is the choice of name for your company. Once you have chosen that, all you need to do is reserve the name, find a registered agent and start filling out articles of organization. These are the things that are not only important for starting your South Carolina LLC but also for running a successful company.
If you have chosen a name for your company, select a registered agent, and filed articles of organization, you should start the process of getting your Federal EIN. Your EIN will serve as your business’s official identification number.
Finally, it is important to understand that there are many types of taxes that can be applied to your LLC. Understanding the different types of taxes imposed on your business helps you determine the most suitable way to pay taxes and make the most out of your company.