How To Set Up An LLC In South Carolina (2024 Guide)

It is vital to adequately prepare before taking steps to set up your South Carolina LLC. That way, your request is successful, and you will avoid wasting time or money. A few things you should know ahead of registering your business entity:

• Is your preferred LLC name available?
• Who will act as your LLC’s registered agent?
• For foreign entities, is there a different set of forms and fees?

You should try to answer as many questions as possible before moving forward. We took the liberty of doing a little legwork in helping to answer the above questions.

Checking for Preferred LLC Name

Before settling on a business name, it is a good idea to perform a search to ensure its availability for use. After deciding on an identity for your brand, you can submit an application to reserve a limited liability company name. This form also works for foreign entities whose existing name is unavailable, so they must use a separate pseudonym.

The fee is $25, and you are required to submit two copies of the form. Reserving a business name gives you the right to form a business using that name, but it does not give you the exclusive right to use the name in South Carolina. You will have to file separate paperwork to register a state trademark or service mark and make the name solely your own.

As part of your name research, it’s a good idea to check the availability of domain names and social media handles that match your preferred LLC name. Using your business name consistently in your marketing helps you brand your business. By registering a domain and setting up social media accounts now, you’ll be assured of having the right website and social media names when you’re ready to start your marketing efforts.

Getting a Registered Agent

As part of your LLC formation paperwork, you’ll need to list an office address in the state, and your registered agent’s name and physical street address in South Carolina. The registered agent receives legal correspondence on behalf of your business and forwards it to the proper person at your LLC. The agent must be 18 or over and a South Carolina resident or a company authorized to do business in South Carolina.

You or an employee of the LLC can act as the agent, or you can hire a registered agent service.

If you hire a registered agent for your LLC in South Carolina, you can expect to pay between $50 and $300. Remember to research and ask questions about their services to ensure you make the best choice for your business.

Once you take the above preliminary steps, you are ready to move forward with establishing your LLC. You must send your Articles of Organization to South Carolina’s Secretary of State, and there are multiple ways.

Submit documents online. The Secretary of State’s website encourages online completion of forms, saying the process will go faster and that your request is far less likely to get rejected. Payment is secure and, most importantly, if you need to stop the process, you can save your forms and continue later.

Send completed forms to the Secretary of State’s office. Attn: Corporate Filings, 1205 Pendleton Street, Suite 525, Columbia, SC 29201

When completing physical documents, you must hand over two completed copies. As for the $110 fee, make your check or money order payable to the South Carolina Secretary of State. Be sure to include a self-addressed and stamped return envelope.

Meanwhile, foreign entities need to submit a slightly different form, the Application for a Certificate of Authority To Transact Business. South Carolina charges both domestic and foreign entities $110.

Once you successfully register your LLC in South Carolina, there are other vital actions to take over the short and long term.

Get an Employer Identification Number (EIN)

Most businesses are legally obligated to get an EIN. Sometimes it is called a Federal Tax Identification Number (FTIN) or Federal Employer Identification Number (FEIN). Alternatively, if you operate as a single-member LLC, you can use your Social Security number (SSN). However, an EIN might be preferable for keeping your SSN safe. EINs are free and easily obtained at the official IRS website.

Check for Changes to Annual Requirements

As of this article, South Carolina does not require LLCs to submit annual reports. That said, be sure to check for changes to the law from time to time, as South Carolina could update its requirements concerning LLCs.

Create an LLC Operating Agreement

Operating agreements are essential for setting the foundation for how you run your LLC. An operating agreement lists essential points such as day-to-day operations, member contributions and even who manages the LLC. Though not required, an LLC operating agreement is excellent for setting the ground rules for your business. It is also a great way to avoid future disputes with business partners, which could escalate and cause massive legal ramifications.

Creating an LLC operating agreement is also often viewed as necessary for providing your business with a sense of legitimacy.

In addition, the South Carolina Secretary of State’s website is a great resource for information about the entire registration process and any additional obligations. Should you have any questions, send a message using the website form or call (803) 734-2170.