Key Takeaways

  • To create an LLC in South Carolina, you must choose a compliant business name, ensure it’s available, and optionally reserve it for 120 days.
  • Filing the Articles of Organization with the South Carolina Secretary of State is the formal step that establishes your LLC.
  • You’ll need a registered agent in South Carolina to receive legal notices and official mail.
  • Some LLCs may need an operating agreement, business licenses, and an EIN from the IRS before starting operations.
  • Trademark registration is optional but can protect your business name and logo.

A South Carolina LLC application is the document that you will need to file in order to form your limited liability company (LLC).

Forming a South Carolina LLC

There are countless benefits to structuring your South Carolina business as a limited liability company. For instance, an LLC can protect the personal assets of its owners when the company has debts that have gone unpaid or has received an unfavorable legal judgment. Generally, you will need to submit much less paperwork to form an LLC compared to other business structures.

In South Carolina, establishing an LLC only requires filling out and filing a few simple forms. You can reference the website of the South Carolina Secretary of State to find detailed information on how to create your LLC. In most cases, you should consult an attorney before forming an LLC to make sure this entity type fits the needs of your business.

Create an Operating Agreement

While South Carolina does not legally require an operating agreement, having one is highly recommended. This internal document outlines the ownership percentages, profit distribution, management structure, and dispute resolution procedures for your LLC.

  • Benefits: Helps prevent misunderstandings between members, protects your limited liability status, and can be useful for banking and legal purposes.
    Even single-member LLCs should consider drafting an operating agreement to clearly separate personal and business activities.

Appoint a Registered Agent

South Carolina requires every LLC to appoint a registered agent with a physical address in the state. The agent’s role is to accept service of process, legal notices, and official correspondence on behalf of your business.

  • Who Can Be an Agent: An individual resident of South Carolina or a business entity authorized to operate in the state.
  • Availability: The registered agent must be available during normal business hours.
    Failing to maintain a registered agent can result in administrative dissolution of your LLC.

File Your Articles of Organization

To officially establish your LLC, file the Articles of Organization (Form LLC-1) with the South Carolina Secretary of State. This can be done online or by mail.

  • Filing Fee: $110 (non-refundable) for most LLCs.
  • Information Required: LLC name, registered agent details, management structure (member-managed or manager-managed), and the LLC’s principal office address.
  • Processing Time: Online filings are typically processed within one business day, while mailed filings may take several days longer.
    Your LLC is legally formed once the Secretary of State approves and files your Articles of Organization.

Pick a Name

The most crucial step in creating your South Carolina LLC is selecting a name for your business. You should make sure that the name you choose is appropriate for the type of company that you will be operating. Make the name of your LLC memorable to remind potential clients of your company. Make sure that your company name isn't too long or is confusing to people. The name of your company must include a designation that indicates it is an LLC.

Some of the designations that you can choose include:

  • Limited Liability Company.
  • Limited Company.
  • LLC.
  • L.L.C.
  • LC.

Words like “Limited” and “Company” can also be abbreviated to “Ltd.” and “Co.”

If you wish to use a restricted word such as Attorney or Bank in your LLC name, there are additional requirements to meet. These can include filing extensive paperwork and making sure a licensed professional such as a lawyer is a member of your company. You will never be allowed to use a word that would associate your LLC with a government agency.

Search Your Name

One of the primary requirements for naming an LLC is making sure that your name is unique from other registered businesses in South Carolina. On the Secretary of State website, you can use the Search Business Filings tool to check and see if the name that you want to list in your Articles of Organization is available.

After performing your business name search, you should also make sure that the name of your company is available as a URL. Having the URL for your company's website the same as your LLC's name is very beneficial. When you are searching for a URL name, you should search different variations to make sure no other company has already claimed the name. It's also possible to perform a domain search using multiple online services.

When choosing a name for your business, you should consider how it would look as an email address.

Reserving Your Name

By paying a $25 fee, South Carolina will let you reserve your LLC's name for 120 days. In addition to paying the required fee, you will need to complete and submit an Application to Reserve Name. This form is found on the website of the Secretary of State. If you're prepared to submit your company's Articles of Organization, reserving your LLC name is not necessary.

You will need to file two completed copies of your application to the Secretary of State to reserve your name. If you wish to pay the fee by check it's made payable to the South Carolina Secretary of State.

Trademark Registration

You are not required to register your trademark when forming your South Carolina LLC. However, if you do choose to register a trademark, you can protect yourself if another person attempts to use your company's name for their own purposes. If you want to register a trademark, you would need to apply to the United States Patent and Trademark Office (USPTO).

You can register both your company's logo and its name. While you should formally register your trademark, you will have rights to your mark just by using it in relation to your services or goods.

Annual Report and Compliance

Unlike some states, South Carolina does not require LLCs to file an annual report unless they elect to be taxed as a corporation. However, LLCs must maintain compliance by:

  • Keeping a current registered agent
  • Renewing required business licenses
  • Updating the Secretary of State if there are changes to the LLC’s registered agent or office address
    Failing to meet these obligations can result in penalties or dissolution.

Obtain an EIN and Business Licenses

Most LLCs need an Employer Identification Number (EIN) from the IRS, even if they have no employees. An EIN is used for tax filings, opening a business bank account, and hiring workers. You can apply for free on the IRS website.In addition, certain industries or locations in South Carolina require local or state business licenses. Check with your city or county government to ensure compliance. Examples include retail sales licenses, professional licenses, and health permits.

Frequently Asked Questions

  1. How much does it cost to form an LLC in South Carolina?
    Filing the Articles of Organization costs $110, payable to the South Carolina Secretary of State.
  2. Do I need a registered agent for my South Carolina LLC?
    Yes. Every LLC must have a registered agent with a physical address in South Carolina.
  3. How long does it take to form an LLC in South Carolina?
    Online filings are processed within one business day; mailed filings take longer.
  4. Is an operating agreement required in South Carolina?
    No, but it’s strongly recommended to protect your LLC’s structure and member agreements.
  5. Does South Carolina require LLCs to file annual reports?
    Only LLCs taxed as corporations must file annual reports; other LLCs have no such requirement.

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