Make your first business move in South Carolina
Do you feel the inner calling for independence and business adventure? 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.
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Deciding on a company name & structure
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Registration process & documents
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Tax obligations
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Valuable tips
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& more
Are you from another state?
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.
Pick your company name
While thinking about your company name, consider these few crucial elements, as a perfect name:
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cannot exist in the business database (cannot be already registered)
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should be personal and unique
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has a positive association
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indicates the type of industry
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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.
Choose the entity type
There are a few types of entities that you can form in Arizona state. Requirements, taxes, benefits, and flaws differ from one another.
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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
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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
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For more official and reliable business, together with personal assets protection, choose a Limited Liability Company (LLC)
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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.
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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 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 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)
To register your Limited Liability Company, choose a Registered Agent and file these papers:
- Articles of Organization
- Operating Agreement
- $110 fee (check or money order payable to the SC Secretary of State)
Note: There is no statewide business license in South Carolina. All business licences are issued through your local municipality. (source: SC Business One Stop).
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.
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