South Carolina Incorporation Frequently Asked Questions
Do I need to reserve a corporate name?
No, but it is recommended to reserve a name prior to filing to ensure that it remains available during the incorporation process
How do I reserve a corporate name?
The reservation of your corporate name will be handled by IncParadise and is included in the price of our service.
Do I have to renew my name registration?
No.
How do I incorporate in South Carolina?
When using our service, IncParadise will file, on your behalf, the required administrative forms and articles of incorporation with the appropriate South Carolina agency.
Is a registered agent required?
Yes. . The registered agent must have a business office identical to the registered office and must be either: (1) an individual residing in South Carolina, or (2) a corporation with authority to transact business in the state. As part of our ongoing service, IncParadise does provide a registered agent service option that you can select during the online registration process.
How many Incorporators are required to form a corporation in South Carolina?
One or more are required.
How many Directors are required to start a corporation in South Carolina?
One or more as defined in the by-laws.
Are corporations in South Carolina required to file an Annual Report?
Yes. A report must be filed each year by the 15th day of the 3rd month following the end of the corporation’s fiscal year.
Of the 31 States with nuclear capacity, South Carolina ranks 3rd. (Environmental Information Administration)
South Carolina ranks as the 5th Most Dangerous State. (Morgan Quitno Press, 2005)
South Carolina ranks high among the states in textile manufacturing.
Cost of living
For Charleston, SC (2005)
Index Score
Composite:
99.6
Housing:
95.2
Utilities:
98.2
Misc. Goods & Services:
100.6
Crime Rate
South Carolina has the 49th lowest overall crime ranking in the U.S. (FBI, 2004)
Fees & Taxes
Business Inventory Tax Exempt.
Corporate Income Tax South Carolina’s corporate tax structure consists of a flat tax of 5.0% on all corporate income.
Personal Income Tax South Carolina’s personal income tax system features six income brackets with a top rate of 7% starting at $12,650.
Personal Property Tax South Carolina is one of the 38 states that collect property taxes at both the state and local levels. Each class of property is assessed at a ratio unique to that type of property and ranges from 4.0 – 10.5%. In South Carolina, intangible personal property is exempt from taxation.
State Sales and Use Tax Base Rate: 5.0%
Machinery Rate: none
There is an exemption for sales of machinery, including parts, attachments and replacements, used in farming, including the production of poultry and poultry products, and in mining, quarrying, compounding, processing and manufacturing tangible personal property.
Unemployment Insurance South Carolina’s new employers’ rate is 3.34 percent for 1 year.
What makes incorporation in South Carolina another step towards achieving high business growth? The state is home to two of the most dynamic aerospace and advanced manufacturing industries, both growing at a rapid pace. The manufacturing industry has witnessed 16% employment growth since 2011 while the aerospace industry has witnessed 12% increase in export sales of aircrafts in the period between 2016 and 2017. There are over 400 aerospace-related companies in South Carolina including Boeing, Carolina Turbine Support Inc., Lockheed Martin, Legends Aircraft LLC, RBC bearings, Zeus Industrial Products Inc., BGF Industries Inc., Curtis-Wright Surface Technologies, and LPA Group among others.
Why Choose South Carolina for Incorporation?
The “Palmetto State” as South Carolina is often known as, has one of the most business-friendly climates and this is one of the reasons why company incorporation in South Carolina has crossed the 400,000 mark. Some of the other aspects that make this state worth forming your business in include overall cost of doing business, a variety of business incentive programs, and ease of access to capital and project funding.
Now let’s take a look at some of the salient benefits that are responsible for fuelling growth of small businesses:
South Carolina Opportunity Zone Program: If you set up a company in South Carolina opportunity zone then your business can benefit from tax credits. These zones comprise of low-income communities and the program objective is to encourage long-term private investments. There are in total 538 designated opportunity zone tracts where you can establish your business. Some of the benefits include:
– A 5-year holding that can increase the rolled-over capital gains basis by almost 10%
– A 7-year holding that can increase the rolled-over capital gain investment basis by 5% for a total of almost 15%
– As an investor, you can defer your original tax bill till December 31, 2026 List of OZ Tracts
Business Incentive Programs: There are a variety of business incentive programs that you can benefit from. They can be categorized under:
– Incentives for Manufacturing
– Incentives for Services
– Business Incentives
– State Discretionary Incentives
– Corporate Income Tax Incentives
– Sales and Use Tax Incentives
How do you incorporate in South Carolina?
What is the process of company incorporation in South Carolina? Do you require any specific documents? How can you submit or file these documents? These are some of the questions that you will be confronted with and hence the following steps will provide you with information on how incorporation works in South Carolina:
Type of Business
The first step towards incorporation in South Carolina is choosing the type of business you want to form. You can choose to form an LLC or a Corporation. The type of business entity you want to form can be either domestic or foreign entity. The forms and fee will be different for each type of entity.
Business Entity Name
What is the next step towards incorporation in South Carolina? The next step is to identify and reserve a name and this can be done as follows:
Naming Requirements: The naming requirements in the state of South Carolina are governed by SC Code § 33-44-105 (2012) for an LLC and SC Code § 33-4-101 (2012) for a Corporation. The name of each limited liability company must contain words like “Limited Liability Company” or abbreviations like “L.L.C.” or “LLC”. A corporate name must contain words like “corporation”, or “incorporated” or abbreviations like “corp.” or “inc.
Business name search: You need to search for a business name that is not in use currently. You can conduct name search here.
Name Reservation: Once you have identified a business entity name, and ensured that the name is available, you can reserve the name with the office of the Secretary of State, Attn: Corporate Filings Division. You can reserve a name for a period of 120 days according to the provisions given in SC Code § 33-4-102 (2012) for corporations and SC Code § 33-44-106 (2012) for an LLC.
Name Registration: If you are a foreign entity planning to set up a company in South Carolina, you will be required to register the business name with the Secretary of State pursuant to Sections 33-4-103 and 33-15-106 of the 1976 S.C. Code of Laws for a corporation and Section 33-44-1005 of the 1976 S.C. Code of Laws for an LLC.
Choose a Registered Agent
Each Business or Professional Corporation and Limited Liability Company in the state of South Carolina is required to maintain a registered agent pursuant to SC Code § 33-5-101 (2012) for Corporations and SC Code § 33-44-108 (2012) for a Limited Liability Company.
We are one of the respected registered agents in South Carolina and will be responsible towards initiating company incorporation in South Carolina through processing of all your documents including “Articles of Organization” and “Articles of Incorporation” for domestic business entities and “Certificate of Authority” for foreign entities.
Articles of Incorporation and Certificate of Authority
If you are planning to form a domestic corporation (For profit), then you will have to file “Articles of Incorporation” pursuant to SC Code § 33-2-102 (2012). If you are planning foreign business incorporation in South Carolina then you will be required to file a “Certificate of Authority” pursuant to SC Code § 33-15-103 (2012). In order to streamline the process we can file documents on your behalf through the online process or through an expedited process.
Date Stamped Copies
As a part of the process of company incorporation in South Carolina, we will ensure, you receive date-stamped and filed copies that verifies that the state has filed as well as formed your corporation.
Costs and Fees associated with South Carolina Incorporation
What would it cost to set up a company in South Carolina? Check Fees here!
South Carolina LLC and Corporation Registration and Formation
Why form a South Carolina business? The state believes that however large or small, every business deserves benefits so that they can keep climbing up the ladder till they achieve the growth initially intended. The Palmetto State is committed to technology and entrepreneurship-based economic development success and this has led to the creation of “Industry 4.0” with the objective of developing smart factories and businesses. The innovation hub led by the Department of Commerce, Office of Innovation provides just about everything a start-up needs to make SC it’s new home!
South Carolina is rapidly evolving towards a more innovative, technology-based and entrepreneurial business environment. Come and experience the difference!
The big question is how do you go about company formation in South Carolina? This is where we can be of assistance!
We are one of the top South Carolina registered agents and are familiar with all incorporation processes pertaining to the South Carolina State and can provide information and assistance for successful set up of your business!
South Carolina LLC Registration and Formation
LLC company formation in South Carolina is governed by 2012 South Carolina Code of Laws, Title 33 – Corporations, Partnerships and Associations, Chapter 44 – Uniform Limited Liability Company Act of 199. The procedure for registration and formation of LLC is as follows:
Step#1: Maintain a registered agent
If you are planning to form a Limited Liability Company in South Carolina then you will be required to designate and continuously maintain a registered agent in the state pursuant to SC Code § 33-44-108 (2012). This law is applicable to domestic limited liability companies as well as foreign limited liability companies.
We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in South Carolina. We can assist you to form a South Carolina business LLC.
Step#2: LLC Name Reservation
One of the foremost steps towards company formation in South Carolina is identifying a name for your business entity. What is the process? The process is as follows:
Identify a name for your business entity
According to SC Code § 33-44-105 (2012), the name should contain the phrase or words “limited liability company” or “limited company” or the abbreviations “L.L.C.”, or “LLC”.
The chosen name should be distinguishable and should not be deceptively similar to the name of any limited partnership, corporation, or limited liability company
Apply for reservation of name pursuant to provisions of SC Code § 33-44-106 (2012).
Submit the name reservation form at the Office of the Secretary of State through online or mail along with the applicable fee. You can reserve a name for a nonrenewable 120 day period.
If your business is a foreign LLC then you will be required to register the name pursuant to SC Code § 33-44-107 (2012).
Step#3: Articles of Organization and Certificate of Authority
If you are planning to form a South Carolina business LLC then the most important step is to prepare and file the proper documents for a Limited Liability Company. The steps are:
If you want to register a domestic LLC then you will have to file “Articles of Organization” governed by SC Code § 33-44-203 (2012).
If your business entity is a foreign LLC then you will be required to file “Certificate of Authority” pursuant to SC Code § 33-44-1002 (2012).
The application or documentation for registration of LLC can be filed with the office of the South Carolina Secretary of State, Attn: Corporate Filings, through mail or online.
We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the LLC registration.
In case, you have any questions regarding how to form a South Carolina business, feel free to call us on 702-871-8678.
South Carolina Corporation Registration and Formation
If you are planning to form a Corporation in South Carolina then its formation will be governed by the 2012 South Carolina Code of Laws, Title 33 – Corporations, Partnerships and Associations. The procedure for registration and formation is as follows:
Step#1: Maintain a Registered Agent
If you are planning to form a business or professional corporation in South Carolina then you will be required to continuously maintain a registered agent in the state pursuant to SC Code § 33-5-101 (2012). This law is applicable to domestic as well as foreign corporations.
We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in South Carolina. We can assist you to form a South Carolina business as we are in compliance with all regulations in the State of South Carolina.
Step#2: Corporate Name Reservation
In order to form a corporation in South Carolina, one of the key steps is identifying a name for your business entity. The process is as follows:
Identify a name for your business entity
Conduct a business name search
According to SC Code § 33-4-101 (2012), a corporate name should contain the phrase or words “corporation”, “company”, “incorporated”, or the abbreviations “Corp.”, or “Inc.”
The chosen name should be distinguishable and should not be deceptively similar to the name of any limited liability company, limited partnership, or corporation
Apply for reservation of name pursuant to provisions of SC Code § 33-4-102 (2012).
Submit the name reservation form at the Office of the Secretary of State through online or mail along with the applicable fee. A business corporation can reserve its name for a period of 120 days.
If your business is a foreign corporation then you will have to register the name pursuant to SC Code § 33-4-103 (2012).
Step#3: Articles of Incorporation and Certificate of Authority
If you are planning to form a corporation in South Carolina, then the most important step is to prepare and file the proper documents for a business corporation. The steps are:
If you want to register a domestic corporation then you will have to file “Articles of Incorporation” pursuant to SC Code § 33-2-102 (2012).
If your business entity is a foreign corporation then you will be required to file “Certificate of Authority” pursuant to the provisions of SC Code § 33-15-103 (2012).
The application or documentation for registration of a corporation can be filed with the office of the South Carolina Secretary of State; Attn: Corporate Filings, through mail or online.
We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the incorporation.
If you have any questions regarding South Carolina incorporation or LLC formation, you can simply visit the South Carolina Business Formation page.
Advantages of Incorporating a Business in South Carolina
South Carolina has been growing economically in leaps and bounds over the last decade. The Real Gross Domestic Product (GDP) of the state in 2007 was $167.65 billion and in 2017 it was $189.1 billion. A report published by Pollina Corporate Real Estate, Inc., has revealed that the state is among “America’s Top Ten Pro-Business States”. This is good news for a start-up company in South Carolina as all new businesses can grow and expand in this business-friendly climate and there cannot be any better value equation than that.
Setting up an LLC or Corporation – Advantages
You can choose to register a new company in South Carolina as a Domestic Corporation, Foreign Corporation, Limited Liability Company (LLC’s), Non-Profit Corporations, Limited Liability Partnership (LLP’s), and Limited Partnership (LP). Each type of business entity has its own set of advantages. Let’s look at the advantage of forming the most common forms of business entities.
Advantage#1: Salient benefits of Corporation or LLC formation
Corporation
Statutory Incentives: If you register a new business in South Carolina as a corporation, you can take advantage of the following statutory incentives:
– Favorable corporate income tax structure
– No local income tax
– No state property tax
– No sales tax on materials or industrial power for finished products and manufacturing equipment or machinery
– No inventory tax
– No wholesale tax
– No unitary tax on worldwide profits
Independent Life: If you register a new business in South Carolina as an S Corporation then the most important advantage is that it will enjoy an independent life. The business entity will continue operation undisturbed even if it is faced with the death of one of its stockholders.
Change in Ownership: If you have formed an S Corporation in South Carolina then sale, purchase, as well as gifting of stock can facilitate changes in ownership. The changes can take place without disturbing the ability of the corporation to conduct its business.
LLC
Business Incentive Programs: If you register a new company in South Carolina as an LLC then there are a variety of business incentive programs that you can benefit from. This includes popular programs like:
– Tax Credits: There are a variety of tax credits that a business entity can benefit from and some of the popular programs include Investment Tax Credit, Research & Development Tax Credit, Port Volume Increase Tax Credit, Jobs Tax Credits, Corporate Headquarters and Enhanced Corporate Headquarters Tax Credit, among others.
– Sales and Use Tax Incentives: Sales and use tax incentives is offered according to the operational area of the business, which is – Out-of-State Sales or Out-of-State Purchases. Sales Tax Exemptions are also a part of this incentive program. You will have to register a new business in South Carolina to take part in the incentive programs.
– Local Property Tax Incentives: This includes Property Tax Exemptions and Incentives like 5-Year Property Tax Abatement or Textile Revitalization Credit. Know More No Minutes: An LLC is not required to keep any formal minutes or resolutions as compared to a corporation, thus making it easier to function
Advantage#2: Other Business Incentive Programs
South Carolina has a unique location and as a result can offer businesses a strong infrastructure making operation of any business easy. The industrial power rates are also 9% lower than the national average and this along with the range of incentive programs provides a start-up company South Carolina with a win-win situation. The incentives can be divided into two main categories, which are:
Incentive Programs for the Manufacturing Sector: There are a variety of incentives programs but the popular programs include Jobs Tax Credits and Investment Tax Credit. These programs are valuable financial incentives where a business entity can get tax credits on investment made or jobs created. The credits can vary from $1,000 to $9,000 per job under the job credit program. The investment credit program is a one-time credit with dynamic credit value that can be carried forward over a period of 10 years. Know More
Incentive Programs for Services Sector: If you register a new company in South Carolina then you can benefit from incentives programs under this segment like Job Development Credit through which you can benefit from the funds provided to offset the cost of locating or expanding your business facility in the state. You can also benefit from Property Tax Exemptions available on intangible property. Know More
Are there any Disadvantages of Incorporating in South Carolina?
If you are wondering if there are any disadvantages if you register a new company in South Carolina then it is important to know that every state has its own advantages and disadvantages. Similarly, every business also has its own advantages and disadvantages or pros and cons. The disadvantages in the state of South Carolina are specific to the type of business entity you form like a limited liability company has “Limited Life” while the process of incorporation takes more time than other forms of organization.
Once you have registered your business in South Carolina, the next step is to check if your business requires a license or a permit. A business license is required in most of the states for a variety of businesses but then on the other hand, not all businesses require a license to operate. As a business entity you may require a permit instead of a license while some businesses may require multiple licenses or permit.
Who oversees the issuance of a business permit or license? The process of issuance of a business license in South Carolina is governed by the state or the city or county. State-wide licenses issued in South Carolina are:
Retail Sales and Use Tax
Alcoholic Beverage Licenses
Apart from the above, most of the permits and license issuance is regulated by each county in the state. It can be a confusing process initially especially if a new business is planning to apply for a license. Hence, we have created a short guide to help businesses understand the process. Download SC Business Resource Guide
Step-by-Step Guide to South Carolina Business License Process
Here is a step-by-step approach towards acquiring a business license in the state of South Carolina.
Step#1: The Industry or Business Type
How would you know what type of business or professional license is required to operate in South Carolina? The type of industry or the activities of a business entity helps in identifying the type of business license required. Different types of licenses and permits are issued by different state agencies or counties.
Let’s look at an example to understand this well.
Alcohol Beverage Licensing
Some businesses will require a South Carolina company license while others will require a permit.
Chapter 4 of Title 61 indicates that manufacturing, sale, and distribution, of beer and wine will be regulated through issuance of winery, brewery, wholesale, and retail permits.
License issued by: South Carolina Department of Revenue, Alcohol Beverage Licensing.
Fee: The fee will vary according to the type of business or activity like Alcoholic Liquor Producer or Importer will require a business license and the fee is $400 biennially. Expiry of the license is August 31 on even numbered years. On the other hand, a Food Service Establishment serving Beer and Wine will require a permit and the fee is $600 and there is also a non-refundable filing fee of $300.
If you are planning to start a Retail Food Establishment then you will be required to apply for a business license. There are different types of food establishments covered under this license and that includes Restaurant/Convenience Store, Sushi preparation onsite, Grocery Store including Meat or seafood Market, Deli and Bakery; Mobile Food; Immediate Outdoor Cooking; and Shared Use Operations/Commissary.
License Issued by: S.C. Department of Health and Environmental Control (DHEC)
Fee: Every applicant will have to pay a $60 inspection fee
Since all licenses are issued by the state, business entities need to apply for their respective business license in South Carolina locally. Most of the towns as well as municipalities require a license for conducting business including the following counties:
Charleston County
Beaufort County
Dorchester County
Jasper County
Horry County
Marion County
Sumter County
Richland County
Let’s look at an example to understand this.
If you are planning to set up your business in Charleston then you will require an annual business license. The license application is divided into three categories and they are:
Application for a New For-Profit Business
Commercial locations have to fill out Business License Certificate of Occupancy Application
Home-based business requires Home Occupation Application.
All licenses are categorized under a rate class starting from 1 to 8 like automobile dealers and amusement parks are covered under Rate Class 8 while food manufacturing is classified under Rate Class 2. Rate Classification Index
The South Carolina company license fee will vary according to the rate class and you can check the calculation of fee here.
The license would be issued by the Licensing Clerk of Charleston, Revenue Collections Division
Step#3: Issuance of a Business License
How is a business license in South Carolina issued? You have to identify the following to complete the process:
The type of business or industry
Do you need a license or a permit?
Will it be issued by the state or the county?
Once you have identified the above, all you need to do is either download the application online or contact the concerned state department or city of clerk office.
It is important to note that a business license or permit will have to be renewed annually unless specific dates have been mentioned, to keep the business operational.
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