How to Form an LLC in South Carolina

Here are the steps you need to take to form an LLC in South Carolina. For more information on how to form an LLC in any state, see Nolo's article How to Form an LLC.

1. Choose a Name for Your LLC

Under South Carolina law, an LLC name must contain the words "Limited Liability Company" or "Limited Company," or the abbreviations "L.L.C.," "LLC," "LC," or "L.C." The word "Limited" may be abbreviated as "Ltd." and the word "Company" may be abbreviated as "Co."

Your LLC’s name must be distinguishable from the names of other business entities already on file with the South Carolina Secretary of State. Names may be checked for availability at the South Carolina Secretary of State business name database.

You may reserve a name for 120 days by filing an Application to Reserve a Limited Liability Company Name with the South Carolina Secretary of State Corporations Division. The reservation must be filed by mail. The filing fee is $25.

3. File Articles of Organization

A South Carolina LLC is created by filing Articles of Organization with the Secretary of State. The articles must include:

• the LLC's name, including LLC designation
• the name and address of the LLC’s registered agent
• the address of the LLC's initial office
• whether the LLC will have a manager run the business; if the LLC is manager-managed, the manager's name and address must be provided
• the term end date if the LLC will last only for a specific term of years (not common)
• whether the LLC will have a delayed effective date--leave blank if you want your LLC to be effective upon filing the Articles of Organization (usually the case)
• the name and address of at least one organizer of the LLC, and
• signature of each listed organizer.

The articles can be filed online or by postal mail. To file online, you must register and create a user name and password. The filing fee is $110.

All of the paperwork and procedural steps to start a limited liability company in South Carolina can be done online using Nolo's South Carolina Online LLC Formation application.

4. Prepare an Operating Agreement

An LLC operating agreement is not required in South Carolina, but is highly advisable. This is an internal document that establishes how your LLC will be run. It is not filed with the state. It sets out the rights and responsibilities of the members and managers, including how the LLC will be managed. It can also help preserve your limited liability by showing that your LLC is truly a separate business entity. In the absence of an operating agreement, state LLC law will govern how your LLC operates.

• the members' percentage interests in the LLC
• the members' rights and responsibilities
• the members' voting powers
• how profits and losses will be allocated
• rules for holding meetings and taking votes, and
• buyout, or buy-sell, provisions, which determine what happens when a member wants to sell his or her interest, dies, or becomes disabled.

For help creating an LLC operating agreement, see Form Your Own Limited Liability Company, by Anthony Mancuso (Nolo) or use Nolo’s Online LLC.

5. Comply With Other Tax and Regulatory Requirements

Additional tax and regulatory requirements may apply to your LLC. These may include:

EIN: If your LLC has more than one member, it must obtain its own IRS Employer Identification Number (EIN), even if it has no employees. If you form a one-member LLC, you must obtain an EIN for it only if it will have employees or you elect to have it taxed as a corporation instead of a sole proprietorship (disregarded entity). You may obtain an EIN by completing an online EIN application on the IRS website. There is no filing fee.

Business Licenses: There is no state-wide business license required in South Carolina. But nearly all cities and counties require businesses to obtain a local business license. More information and links to city and county websites are at the South Carolina Business One Stop (SCBOS) website.

Department of Revenue: In some cases, for example if you have employees or will be selling goods and collecting sales tax, you’ll need to register with the South Carolina Department of Revenue (DOR). In most cases, you can begin the process online at the South Carolina Business One Stop (SCBOS) website. For more information on state LLC tax registration, see Nolo's article South Carolina LLC Annual Filing Requirements.

6. Foreign LLCs Doing Business in South Carolina

To do business in South Carolina, all LLCs organized outside of the state must register with the South Carolina Secretary of State. Foreign LLCs must appoint a registered agent for service of process. The agent may be a South Carolina resident or a business entity authorized to do business in South Carolina.

To register, you must file an Application for a Certificate of Authority to Transact Business with the South Carolina Secretary of State and pay a $110 filing fee.The application must be filed by postal mail.

The completed application must be accompanied by a certificate of legal existence or good standing from the foreign LLC’s home state that is not more than 30 days old.