How to Start an LLC in South Carolina
Ready to start your South Carolina LLC? This guide will walk you through everything you need to know, from filing your Articles of Organization and choosing a registered agent to setting up the ground rules for running your new business.
Step 1: Name Your South Carolina LLC
Choosing a great name for your South Carolina LLC is one of the first steps to forming your business. You’ll need to find one that is unique in the state before your Articles of Organization can be approved. Below are some rules and considerations for choosing a business name:
What are South Carolina’s business name requirements?
- South Carolina Business Statute §33-44-105 lists all the state’s rules for naming your LLC. To summarize, they require your LLC name to contain an entity identifier (LLC, L.L.C., Ltd. Liability Co., etc.), or include the words “Limited Liability Company.” It must also be distinguishable from all other registered business names (unique) in the state.
Is the name unique in the state?
- To see if your business name is available in South Carolina, search for it in the South Carolina Business Name Seach site. Or, let us take care of this step for you with our LLC formation package.
Are others using the name online?
- Once you see that your business name is available, check online to see if it’s available as a domain name or social media handle. This allows you to establish a strong business identity by using the same or similar names across various media and advertising platforms.
- When you hire us to form your South Carolina LLC, we’ll register your domain for free and give you three free months of email and website services (they’re just $9/month after that).
Can you register the name as a trademark?
- Federal trademarking of your LLC name safeguards its uniqueness nationwide. When you hire us to register your LLC, we provide the option for trademark registration as well. Our experienced trademark team will conduct a comprehensive clearance search of your business name, and our attorneys will provide guidance if they encounter any potential challenges to registration.
Step 2: Choose a South Carolina Registered Agent
Every active business in South Carolina is required to have and maintain a registered agent on state record. The duty of the registered agent is to receive legal service of process (lawsuit documents) intended for the business and forward it on promptly to the business owner. State requirements for the registered agent state:
- The agent must be an individual resident of South Carolina, or a business that is authorized to do business in the state.
- The agent must have a street address in South Carolina where they will be available during normal business hours to receive legal and state mail in person for your business.
What’s the difference between a registered agent and an agent for service of process?
There is no difference in the definition or responsibilities of these two titles. “Registered agent” is just the more general and commonly used name for this position. On the South Carolina LLC Articles of Organization, you’ll see this position referred to as the initial “agent for service of process.”
Step 3: File South Carolina Articles of Organization
Submitting the completed Articles of Organization to the South Carolina Secretary of State will officially form your LLC in the state. The cost is $110 and can be submitted by mail or online. All the information you’ll need to complete the application is below:
1
Entity Name
Remember to include the entity identifier (Limited Liability Company, LLC or L.L.C.)
2
Designated office address
This is the address of your actual business. It does not have to be a South Carolina address.
3
Registered agent information
Print the name of the individual or business serving as your initial agent for service of process. The agent must sign below to accept this legal appointment. The initial address for service of process is your registered agent’s South Carolina street address. PO Boxes are not acceptable.
4
Organizer(s) name & address
The organizer is not necessarily a member or manager of your LLC. This should be completed with the information of the person or people completing this application for submission to the state.
5
Term of your LLC
If you want your LLC to exist in the state for a limited time only, enter the date you want the state to terminate your business. If you want your business to exist until you choose to close it, leave this area blank and don’t check the box.
6
Manager Managed LLC
You can choose to have your business run by “managers” who are not necessarily also members of the LLC with a share of ownership. If you choose to have your LLC be Manager-Managed, complete this section. Most commonly, LLCs are “member-managed,” meaning the members/owners see to the day to day running of the business.
7
Member debt liability
Outline specific debts and obligations for designated LLC members under SC Section 33-44-303(c). This section is optional.
8
Effective date
You can choose a specific day for your LLC to become active, or leave this area blank if the date the state processes this application is acceptable.
9
Other provisions
Attach or upload a separate document with any further provisions you wish to place on your LLC. This section is optional.
10
Signature(s) of organizers
Each organizer listed in section 4 must sign and date this form.
How long does it take for an LLC to be approved in South Carolina?
The LLC Articles of Organization processing time depends on how it is submitted:
- By mail: The state can take a couple weeks to approve it and mail your documents to you. You must send in two completed copies of the Articles of Organization, a self-addressed stamped envelope, and a check or money order for $110.
- Online: The state will get it processed in one to two business days. Online applications are charged an extra $15 convenience fee, and the state will email you a link where you can download your approved documents.
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Step 4: Set Up Business Operations
Now that your South Carolina LLC formed in the state, you will need to address a few more issues to get your business running in the right direction.
Create an operating agreement.
An operating agreement is like the blueprint for how your South Carolina LLC will be managed and maintained. It establishes the rules for things like adding members, dividing ownership, and sharing profits. Most banks, lenders, and investors like to see the operating agreement because this document also establishes your credibility as a serious business owner.
Get an EIN.
An EIN acts like your LLC’s social security number. Most banks will ask to see it before opening a business bank account for you.
Manage your company’s money.
Keeping your South Carolina LLC’s limited liability features means keeping your personal income separate from your business income. Establishing a separate business bank account is the most effective way to protect yourself and your business.
Obtain licenses and permits.
Depending on where you do your business and in what industry, your South Carolina LLC may need additional permits and/or licenses. Contact the South Carolina Labor Licensing Regulation site to see if your business needs special licensing.
Step 5: File BOI Report
Filing the Beneficial Ownership Information (BOI) Report follows most business registrations. This report asks for details concerning the company itself, its owners who own at least 25% of the company, or who have substantial control over the company.
The BOI is a federal filing submitted to FinCEN and became a requirement in 2024. LLCs formed in 2024 have 90 days from registration to file their BOI Report. If you form your LLC in 2025 or later, you’ll have just 30 days to file.
When you hire us to form your South Carolina LLC, you can add the BOI filing to your order. One less thing for you to worry about!
Frequently Asked Questions
What is needed to start an LLC in South Carolina?
To start an LLC in South Carolina, you will need a South Carolina registered agent, a completed Articles of Organization application, and $110 to pay for its processing by mail. If you choose to submit your application online, the cost will be $125.
How much does it cost to start an LLC in South Carolina?
The cost to start an LLC in South Carolina is $110 if you file the Articles of Organization by mail. The state will take a couple weeks to process your application and mail you back a hard copy of the approved business documents.
If you file the Articles online, the cost is $125 but the state will process it in one to two business days. You will receive an email where you can download a copy of your approved documents.
Do LLCs pay taxes in South Carolina?
The LLC itself does not pay any taxes in South Carolina because it is considered a “pass-through” entity. This means the member(s) of the LLC pay taxes on any profits or losses on their personal income taxes. For more information on South Carolina’s business taxes, check out the South Carolina Department of Revenue site for Business Taxes.
When is the South Carolina Annual Report due?
Good news! Most LLCs are not required to file an annual report in South Carolina. The only LLCs that will need to submit an Annual Report are those that have chosen the C or S corp tax election. This means, you filed a very specific application with the IRS to have your LLC taxed in a different way (other than the default “pass through” entity way).
How do I contact the South Carolina Secretary of State?
You can contact the South Carolina Secretary of state in the following ways:
Phone: 803-734-2158
Fax: 803-734-1614
Mailing address:
Corporations Division
P.O. Box 11350
Columbia, SC 29211
Physical address:
Edgar Brown Building
1205 Pendleton Street Suite 525
Columbia, SC 29201