There are two ways to form an LLC in SC: one requires filing articles of organization with the Secretary of State’s office; the other is filing reports of the organization online. Both methods are easy. However, there are some differences between the two.
1. Article of Organization Requirements
a. You must file articles of organization within 30 days of forming the corporation.
b. If you fail to do so, you lose control over the name and assets of the company.
c. You cannot use the same name twice.
d. You must pay $100 fee to the state.
e. Your articles of organization must include the following information:
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It is simple to file the South Carolina Articles of Organization!
The process of organizing a business in South Carolina is very simple. You just need to file the Articles of Organization with the Secretary of State’s office. This is done online and takes less than 5 minutes. There are no fees associated with it.
To organize your business, you need to fill out the form titled “Articles of Organization”. Fill out the form completely and attach the required documents such as the Articles of Incorporation, the Certificate of Good Standing, the Bylaws, and the Memorandum of Association. Once everything is complete, print out the completed application and mail it along with the required documents to the Secretary of State‘s office.
Once the documents reach the office, the secretary of state will review them and send you a confirmation email stating whether or not your application was accepted. If everything goes well, you will receive a certificate of incorporation within 10 days.
If there are any issues with the documents, the secretary of state’s office will contact you via phone or email and ask you to resubmit the documents. In some cases, the secretary of state may request additional information from you.
Step 1: Get Forms for Your Articles of Organization
If you are planning to start a nonprofit organization, you must fill out the articles of organization forms. These forms are used to establish the legal status of the entity. You can obtain the forms from the Secretary of State’s office. In some states, you can download the documents online. Contact your local secretary of state office if you do not know where to find the forms.
Step 1: Go to the homepage of the Secretary of State’s office in your state.
Step 2: Click on the link titled “Articles of Organization.”
Step 3: Select the type of organization you want to file.
Step 4: Enter the name of your organization.
Step 5: Check whether the organization is eligible for tax-exempt status.
Step 6: Check whether the organization needs to register under federal laws.
Step 2: Complete the Articles of Organization
The next step in setting up your limited liability company (LLC) is to fill out the articles of organization. This document serves as proof that you are indeed forming a legal entity. You must file it with the state where you plan to do business. If you are filing online, you will likely receive a confirmation email once you complete the process.
Governing Authority Type
This section allows you to choose one of three types of governing authorities: sole proprietorship, general partnership, or corporation. Each type has different tax implications, so make sure you understand what each option entails.
Incorporation vs. Partnership
If you want to incorporate, you will need to pay $100 plus fees per person. Corporations are taxed differently than partnerships. For example, corporations are required to pay taxes on profits earned within their borders while partnerships aren’t.
An LLC can exist indefinitely, but most people set it to expire after five years. An expiration date doesn’t mean that the LLC automatically dissolves; members can renew the agreement to keep operating.
Step 3: File the Articles
The Create process of forming a limited liability corporation Get (LLC) begins with filing Open articles of incorporation with the Secretary of State. This document serves as the foundation of your LLC. To start a business, you must file articles of organization. You can do it yourself or hire a lawyer to help you.
There are two ways to file your articles of incorporation. One option is to go to the Secretary of State’s website and download the forms directly. Another way is to fill out the form online, print it out, sign it, and mail it to the Secretary of State. Both methods require filling out the same information, including the following:
• Name of entity
• Business purpose
• Number of shareholders
• Names and addresses of directors
Steps After Your South Carolina LLC Is Officially Formed
An LLC needs to hire a Registered Agent to receive legal documents. The Articles of Organization must be filed with the Secretary of State within 30 days of formation. An LLC can be formed in South Carolina without having an Operating Agreement. An LLC requires an Employer Identification Number (EIN) whether it has one or multiple members. A single-member LLC does NOT require an Operating Agreement. For more information about filing an LLC, please contact us at 803-717-8500 or email [email protected] Operating Agreement
An Operating Agreement is a legal instrument used to establish the rules and regulations for an LLC. If you form an LLC in South Carolina, you’ll probably want to use our free Operating Agreement generator to make sure you’ve got everything covered. You can download the template here.
Create an EIN in SC
An EIN is required to establish a business bank account. There are three main methods to apply for an EIN: online, mail, and fax. Each method requires different steps, but there is one common factor among all three: you must provide proof of identity. This includes a valid Social Security number, passport, birth certificate, driver’s license, etc.
The IRS offers free eServices to help small businesses file taxes electronically. You can use the eServices tool to prepare and submit your tax return without having to go into an office. However, you still need to provide proof of identity.
A good reason to get an eIN is to avoid fines, penalties, and fees. If you don’t have an EIN, you could face hefty fines and penalties. For example, banks typically charge $10 per transaction fee, plus 3% of each deposit. Also, the IRS imposes a penalty of up to 25% of the amount owed if you fail to pay within 10 days.
Open a Business Bank Account (SC)
Your business needs a dedicated business bank account. A business bank account offers protection against lawsuits and tax liabilities. Plus, it allows you to track expenses and set up automatic payments.
A business bank account is different from personal banking because it requires you to open an individual account and link it to your business name. You must provide proof of identity, such as a driver’s license or passport, and submit a copy of your business’s articles of incorporation.
You can choose whether to use a traditional brick-and-mortar branch or an online bank like Capital One 360. Online banks are convenient and cost less than $100 per month.
If you don’t want to open a business bank account, consider opening one in another state where taxes are lower. For example, New York residents pay no income tax, while California residents pay 8% sales tax.
Get Licenses and Permits in South Carolina
The federal government requires certain businesses to obtain licenses or permits before they operate. Some states require additional regulations. Your local city or county may impose even more requirements. You must comply with all applicable requirements. Failure to do so could lead to fines and penalties.
Frequently Asked Questions
Are late fees subject to the Sales and Use Tax?
We are often asked whether a sales tax applies to late fees charged to customers for late payments of bills for electricity or natural gas. In general, the answer is no. A late fee charged a customer for a late payment of a utility bill is not subject to the state sales tax because it is not a “sale.” However, if the retailer sells tangible personalty or a taxable service at wholesale and the sale qualifies for a specific exemption, then the entire sales tax base (including any late fees) is exempt. Note: If the retailer sells taxable tangible personal property or a nontaxable service at retail and the sales qualify for exemptions, then the entire sales base is exempt.
What is the difference between the Sales Tax and the Use Tax?
If you buy something online, it might seem like there’s no tax involved. But what happens when you go into a store and purchase the same item? You pay sales tax. This is called the “use tax.” If you rent something, such as a car, you pay the use tax. And if you lease something, such as a computer, you pay the use taxes.
When you buy something at a retailer, whether you’re buying something local or online, the retailer must collect the sales tax and remit it to the state. When you rent something, whether it’s a car or a computer, the rental agency collects the use tax and remits it to the state.
James Rourke is a business and legal writer. He has written extensively on subjects such as contract law, company law, and intellectual property. His work has been featured in publications such as The Times, The Guardian, and Forbes. When he’s not writing, James enjoys spending time with his family and playing golf.