How to start a business in South Carolina
For those who feel the inner calling for independence and business adventure.
The steps
Just a few essential steps
Would you like to become a business owner and a decision-maker? Starting a business is like opening a new door. It brings new experiences to light, both good and challenging. It can sound complicated and scary, but in fact - it is only a few steps process. Below, we list what exactly is needed for starting your own business in South Carolina. We will help you to set it all right.
- Register with
- Secretary of State
- LLC filing fee
- $110
- Registered agent
- Required
An agent with a South Carolina street address
- State tax ID
- Department of Revenue
Register through MyDORWAY
- Licenses
- Local
Business license from your city and/or county
- Federal tax ID (EIN)
- Free
From the IRS, online
Step 1 of 5
Pick your company name
While thinking about your company name, consider these few crucial elements, as a perfect name:
cannot exist in the business database (cannot be already registered)
should be personal and unique
has a positive association
indicates the type of industry
is related to what you do (if it is very specific) and open for possible business modifications in the future as well (to stay up-to-date even if you, e.g., broaden your field of expertise)
You may also decide on a trademark for your business, like logo and a slogan.
Step 2 of 5
Choose the entity type
There are a few types of entities that you can form in South Carolina. Requirements, taxes, benefits, and flaws differ from one another.
If you are sure to work alone in your company and want the easiest form of setting up a business and its taxation, you might decide on a Sole Proprietorship
To be able to work in two or more people, while still having the easiest form of setting up a business and its taxation, consider Partnership
For more official and reliable business, together with personal assets protection, choose a Limited Liability Company (LLC)
For a bigger enterprise, with more employees, consider a Corporation
While considering a small service business, we advise you to choose from the first three options.
Note: Converting your Sole Proprietorship to an LLC is a complicated and time-consuming process. It is easier to stay with the entity type you chose primarily.
Answer the questions to see which option fits.
Step 3 of 5
Place application with needed documents
Depending on a chosen business entity, the application procedures and documents may vary. Find your type below and check what is needed.
Sole Proprietorship
Sole proprietorships do not register with the Secretary of State.
The sole owner assumes complete responsibility for all liabilities and debts of the business. (source: SC Business One Stop)
General Partnership
General partnerships do not register with the Secretary of State.
Partnerships should operate under a written Partnership Agreement to avoid future problems. All partners are responsible for the liabilities and debts of the partnership. (source: SC Business One Stop)
LLC
To register your Limited Liability Company, choose a Registered Agent and file these papers:
- Articles of Organization
- $110 fee (pay online, or by check or money order payable to the SC Secretary of State if you file on paper)
An Operating Agreement is not filed with the state, but we recommend having one.
Note: There is no statewide business license in South Carolina. All business licenses are issued by your city and/or county. (source: SC Business One Stop).
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Step 4 of 5
Obtain EIN & check tax regulations
Obtain an Employer Identification Number (EIN) which is needed also for a one-person business, e.g. to open a business bank account. Apply via the Internal Revenue Service website.
Get to know your tax obligations:
- If you start a Sole Proprietorship: The income of the business is reported as part of the owner's personal income. You just need to fill in one more document which is Schedule C.
- If you start a Partnership: Partnerships enjoy single taxation. Income is reported as part of each partner's personal income.
- If you start an LLC: If the LLC qualifies under IRS guidelines, it may be taxed only once, like a partnership, at the employee or member level.
- For single-member LLC fill Form 1040
- For multi-member LLC fill Form 1065
(source: SC Business One Stop)
Find all taxes forms and instructions on the official Internal Revenue Service website: irs.gov/forms-instructions.
Step 5 of 5
Gather first customers & enjoy your independence
Now that your business is running, strengthen your online presence with IKOL. Get your domain, build a professional website, and expand your reach. Unlock growth opportunities today!
Are you from another state?
Learn how to set up a business in other states
Check out other guides if you need more detailed information about different states. You can click the state you are interested in on our map or choose it from the list below.
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