How to Register a Business in South Carolina

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TLDR

South Carolina is friendly to founders, startups, and entrepreneurs.
When you register your startup in South Carolina, you’ll need to satisfy several legal requirements to register your business correctly. However, before registering your startup, it’s a good idea to plan ahead, for example, researching the market and potential competitors, mapping out your financing, planning for operations and personnel, and creating a business plan. South Carolina provides various resources to help you start a business, helping you identify what resources you’ll need as you launch your startup.
Additionally, you must also determine your startup’s legal ownership structure. Popular structures include sole proprietorships, general partnerships, limited partnerships, limited liability partnerships, limited liability companies (LLCs), business corporations, statutory close corporations, and professional corporations.
When you’re ready to register your startup, depending upon your chosen business structure, South Carolina requires you to choose a unique business name, differing from any other registered businesses in the state. In addition, you must follow South Carolina’s business naming conventions, which help make your startup’s name distinguishable.
Depending upon your chosen business structure, you’ll need to register with the South Carolina Department of State before commencing operations in the state. You may file your formation forms by US mail, in person at South Carolina’s Department of State’s office, or online through South Carolina’s online portal.
After you submit your formation forms, registering your startup with the state, you’ll also need to obtain a federal employer identification number for banking and tax filings. Additionally, you’ll need to check in with the State of South Carolina and your local city and county to see if there are any additional business registrations required, such as a business license.
With online filing options, you can register your South Carolina startup in as little as a few hours. However, if you mail in your registration forms instead, you may have to wait a few days for your startup to be up and running officially.

South Carolina is known for its historical districts, golf courses, and beaches, with influential cities including Charleston, Columbia, and Myrtle Beach. The state also has 61 colleges and universities, including the University of South Carolina and Clemson University.

South Carolina is also friendly to founders, startups, and entrepreneurs. Entrepreneurs in South Carolina have significant support, from ecosystem builders like Upstate Carolina Angel Network (U-CAN), Innovista/USC, the Center for Entrepreneurship at College of Charleston, and Clemson University’s Small Business Development Center (SBDC).

South Carolina is also small business-friendly, with over 445,000 small businesses, employing over 830,000, according to the U.S. Small Business Association (SBA). Top small business industries include construction; retail trade; health care and social assistance; professional, scientific, and technical services; and accommodation and food services.

As a startup founder, if you consider registering your business in South Carolina, this article will walk you through what you need to know.

How to Register a Business in South Carolina

When you register your startup in South Carolina, you’ll need to satisfy several legal requirements to register your business correctly. However, before registering your startup, it’s a good idea to plan ahead, for example, researching the market and potential competitors, mapping out your financing, planning for operations and personnel, and creating a business plan. South Carolina provides various resources to help you start a business, helping you identify what resources you’ll need as you launch your startup.

The creation of a business plan is critical to your startup’s growth. Think of it as the foundation of the house you’re building. In drafting your business plan, you’ll want to consider marketing, advertising, sales, location, and ownership, to name a few categories. To help guide you, you can check in with the U.S. Small Business Administration, providing additional guidance for creating a business plan.

Once you’ve identified some of your business’s operation basics, it is then time to register your startup. Below, we’ll walk you through the steps necessary to register your business in South Carolina.

Determine Your Business’s Entity Structure

Before you register your startup in South Carolina, in addition to creating a business plan, you must also determine your startup’s legal ownership structure. Popular structures include sole proprietorships, general partnerships, limited partnerships, limited liability partnerships, limited liability companies (LLCs), business corporations, statutory close corporations, and professional corporations.

Let’s look at some structures more specifically. A sole proprietorship does not “produce a separate business entity. This means your business assets and liabilities are not separate from your personal assets and liabilities. You can be held personally liable for the debts and obligations of the business.”

A limited partnership has “only one general partner with unlimited liability, and all other partners have limited liability. The partners with limited liability also tend to have limited control over the company, documented in a partnership agreement. Profits are passed through to personal tax returns, and the general partner — the partner without limited liability — must also pay self-employment taxes.”

On the other hand, a limited liability company, or LLC, “lets you take advantage of the benefits of both the corporation and partnership business structures. LLCs protect you from personal liability in most instances, your personal assets — like your vehicle, house, and savings accounts — won’t be at risk in case your LLC faces bankruptcy or lawsuits.”

Note that in South Carolina, you do not need to register a sole proprietorship or a general partnership.

Your chosen business entity determines the next steps in registering your South Carolina startup. Read on to learn about the next steps.

Choose the Name of Your Startup

When you’re ready to register your startup, depending upon your chosen business structure, South Carolina requires you to choose a unique business name, differing from any other registered businesses in the state. In addition, you must follow South Carolina’s business naming conventions, which help make your startup’s name distinguishable.

To confirm if your startup’s name is distinguishable from other registered businesses, you can use South Carolina’s business entity search tool.

Remember, this is only a preliminary search for a similar business name. Once you file your startup’s registration, another name availability search will be conducted when your application is processed.

Suppose you’re not quite ready to register your startup, but you’d like to preserve your startup’s name. In that case, you can file a name reservation application with South Carolina’s Department of State’s office. You may keep your business name reserved for 120 days, along with a $10 0r $25 filing fee depending on your startup’s entity.

You may choose to use fictitious names for sole proprietorships other than using their name. A fictitious name can also be used as a “doing business as,” or DBA, for corporations, partnerships, or LLCs. Founders must file their fictitious names with South Carolina’s Department of State.

Identify Your Registered Agent

Each registered entity must have a “registered agent,” which “receives official papers and legal documents on behalf of your company. The registered agent must be located in the state where you register.”

Submit Your Formation Forms

Depending upon your chosen business structure, you’ll need to register with the South Carolina Department of State before commencing operations in the state. You may file your formation forms by US mail, in person at South Carolina’s Department of State’s office, or online through South Carolina’s online portal.

Additionally, you’ll need to file the appropriate filing fee along with your formation documents. Paying the wrong amount can result in the return of your documents, further delaying your startup’s formation.

South Carolina’s Department of State provides all business registration forms for your startup. For example, for an LLC, you can use the sample forms provided on the site for your certificate of organization, which also notify you of the required filing fee. In addition, you’ll file articles of incorporation for corporations, and for limited partnerships, you’ll file a certificate of a limited partnership. All forms can be filed online.

What to Do Next

After you submit your formation forms, registering your startup with the state, you’ll also need to obtain a federal employer identification number for banking and tax filings. Additionally, you’ll need to check in with the State of South Carolina and your local city and county to see if there are any additional business registrations required, such as a business license.

How Long Does It Take to Register a Business in South Carolina?

With online filing options, you can register your South Carolina startup in as little as a few hours. However, if you mail in your registration forms instead, you may have to wait a few days for your startup to be up and running officially.

Like any other task, preparation is vital. The more you prepare, the faster you’ll complete your registration. By researching your business’s services or products, determining if your startup name is unique, and choosing your ownership structure, you’ll be better prepared to complete the necessary registration forms.

How Much Does It Cost to Register a Business in South Carolina?

Depending upon your chosen entity for your startup, you will have filing fees due when registering your company. For example, if you register as a corporation or an LLC, you’ll pay a filing fee of $110 if filing online.

You’ll also need to file annual reports for your startup. After submitting your registration forms, you need to learn about any required state or local licenses, such as a business license.

Also, depending upon your entity, you may be liable for South Carolina’s business taxes, such as withholding, sales tax, and corporate tax. To better understand your state tax obligations as a startup, you can check with the South Carolina Department of Revenue, or you should consult with an accountant familiar with South Carolina tax laws.

How Do You Register as a Woman-Owned Business in South Carolina?

In South Carolina, if you are a woman-owned business, you have access to several certificate programs and resources, such as the South Carolina Division of Small and Minority Business Contracting and Certification and the Office of Women’s Business Ownership, part of the U.S. Small Business Administration.

In addition to the state certification, you can also explore national certifications, such as those offered by the Small Business Administration (SBA). For example, the SBA offers three types of certifications for women-owned businesses, including the Women’s Business Enterprise (WBE), the women-owned small business (WOSB), and the Economically Disadvantaged Women-Owned Small Business (EDWOSB). To learn more about these certifications, visit the SBA’s website.

The Benefits of Registering a Business in South Carolina

Here are some benefits of registering your startup in South Carolina:

Numerous tax credits, such as those for agribusiness or small businesses
A unique mix of tradition and culture, technology, talent, innovation, and entrepreneurship
Collaborative business culture
Low taxes
Access to top talent with 61 colleges and universities
Plenty of historical landmarks to visit
Access to beaches on the Atlantic coast
Mild winters
Plenty of outdoor activities

The Limitations Associated with Registering a Business in South Carolina

Here are some limitations of registering your startup in South Carolina:

Higher costs of living compared to neighboring states
Too much construction
Hurricanes
Lots of bug spray

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If you’re looking for help registering your Utah startup, we can get your documentation ready, overall shepherding this process to ensure it’s done right. Get in touch with us.

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