Starting a business is an exciting time for an individual or group of people; however, often times the legal requirements can overwhelm first time business owners. At McGrath Law Firm, we have extensive legal experience in business creation, business counseling, and business litigation. A limited liability corporation (LLC), is a business structure that combines the aspects of corporations and partnerships. Each state has specific requirements for LLCs, including South Carolina. We have included a list of steps that people can take in order to start their first LLC in the state.
Choose a Name
The first step to establishing a limited liability company (LLC) or a limited company (LC) is to determine a name for your business. In order for a business to secure its name, it must submit a name to the South Carolina Secretary of State. Names for LLCs only pass if they are distinguishable from other businesses entities already on file in South Carolina. It is helpful to check the name availability for your company by visiting the state’s business name database. A name can be reserved for 120 days by filing an Application to Reserve Name with the South Carolina Secretary of State Corporate Division by mail after paying a $25 processing fee.
File Articles
In order to establish an LLC in South Carolina, a business must file Articles of Organization with the Secretary of State. The LLC must have the name and address of the business owner, the name and address of each individual organizer, as well as the manager if there is one. The articles must similarly be posted by mail and a business has to deposit a $110 processing fee.
Appoint an Agent
All LLCs that are registered in South Carolina are required to have an agency for service of process in the state. An agent, or an attorney, is responsible for the person’s legal papers and must be a resident or business entity that is authorized in South Carolina.
Complete All Paperwork
After a business has chosen a name, filed articles, and appointed an agent then its next steps are to prepare an operating agreement and comply with all tax and regulatory requirements. Although an operating agreement is not required in South Carolina, it is highly recommended that new business create an operating agreement in order to have system put in place. Your business may need to obtain a business license or an IRS Employer Identification Number (EIN) even if it has no employees. You can complete an EIN application on the IRS website for not cost.
At McGrath Law Firm, we believe in empowering local business owners with the skills they need to run a successful business. Our attorneys are open to helping all companies, regardless of size, structure, or industry. We understand that laying a strong foundation for your company can help you build your business in the future. For more information about our legal services for business then you can contact 843-606-2755.