Opening a Company in South Carolina: LLC or Corporation

To establish a company in South Carolina, specific steps are required:

• Choose the company name including the terms "LLCC" or "Corp" or "LLC."
• Appoint a Registered Agent with a South Carolina address to receive official documents.
• Determine the number of shares to request authorization for.
• Set the price of the shares to be authorized.
• Submit the Articles of Incorporation to the South Carolina Department of State.

Generally, to open a corporation in South Carolina:

• Including the names of shareholders or administrators in the Articles of Incorporation is not mandatory.
• A preliminary administrative declaration must be presented simultaneously with the Articles of Incorporation.
• South Carolina companies must have one or more administrators; however, there are no specific residency or age requirements, and their names do not necessarily need to be included in the Articles of Incorporation.

Once the opening phase in South Carolina is completed, companies must keep the following documents at the main office:

• The Articles of Incorporation and any amendments.
• Corporate bylaws and any amendments.
• Permanent minutes of shareholder meetings.
• Resolutions of the board of directors.
• Records of actions taken by shareholders without a meeting.
• Written communications to shareholders from the last three years.
• A list of names and addresses of all shareholders.
• A list of board members.
• The most recent annual report.
• A copy of federal and state tax returns for the last ten years.

LLC in South Carolina

Specific information for opening an LLC in South Carolina:

• To open one, submit the Articles of Organization [not the Articles of Incorporation as for corporations].
• The company name must include the notation "LLC" -
• The LLC's name must be distinct from other registered companies in the state.
• LLCs must have at least one member/manager, but no specific residency or age requirements exist.
• The names of LLC managers must be listed in the Articles of Organization.
• The Articles of Organization should not contain the names of the LLC members.
• An LLC must also appoint a Registered Agent.
• LLCs are not required to submit an annual report to the state.
• An EIN is required for LLCs if they have employees in South Carolina.
• LLCs in South Carolina do not need a state tax identification number.

State Corporate Income Taxation in South Carolina

State corporate income taxation in South Carolina occurs at a flat rate of 5%.

The rate for the Sales Tax for state sales is 6%, with a maximum local surcharge on sales of 3%, resulting in an average combined state and local sales tax rate in South Carolina of 7.43%.