A South Carolina LLC is formed after the Articles of Organization has been filed with the Secretary of State. The articles must include the LLC’s name and address, the name and address of the LLC’s registered agent, the name and address of each organizer of the LLC, and the member of management structure of the LLC.
To comply with South Carolina law, the LLC must have a name that contains the words “Limited Liability Company”, “Limited Company”, “L.L.C.”, “LLC”, “LC”, or “L.C.”. The word “Limited” may be abbreviated as “Ltd.” and the word “Company” can be abbreviated to “Co.”.
A registered agent must be appointed for every South Carolina LLC. The agent can be an individual or business entity that accepts legal papers on the LLC’s behalf if sued. The registered agent must have a physical address in South Carolina.
What is an LLC?
LLC refers to a Limited Liability Company, and it is organized by business owners. They have fewer corporate formalities and can be taxed by the IRS as a sole proprietorship, S corporation, or C corporation.
Each state has different requirements and regulations regarding the formation of an LLC. Business owners should check with state laws when considering forming an LLC.
Owners of LLCs are known as members, they can be individuals, corporations, other LLCs, or foreign entities. There is no limit on the number of members an LLC can have. In most states, “single-member” LLCs are allowed, where there is only one owner involved in managing the LLC.
The IRS will treat the LLC as a corporation, partnership, or included in the LLC owners personal tax return. A domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless they file Form 8832 and elect to be treated as a corporation.
LLCs carry tax advantages over other forms of business such as limited partnerships. The owners of an LLC do not assume personal liability for business debt, and any losses of the LLC can be used as tax deductions against active income.
An LLC can be formed through the state business formation process or consulting with LegalZoom.