Starting a new business can be an exciting time — but it also comes with a lot of paperwork. Before you can get you business up and running in South Carolina, you have to take some important steps. The first step is to know how to form your business the right way and meet the legal requirements. For many new small business owners, forming a South Carolina limited liability company (LLC) is the springboard to success. So let’s look at how to get an LLC in SC.

Making sure you register your business properly can seem overwhelming at first, but we can help. Not only can we make your business official with our formation services, but our supporting services also give you the tools to manage and grow your business with confidence. Let’s take a closer look at how to start an LLC in SC.

When starting a Limited Liability Company in South Carolina, you’ll need to register it with the South Carolina Secretary of State and file Articles of Organization. But first, there are a few decisions you need to make.

Step 1: Name your SC LLC

The first step is to decide on a name for your company. Your company’s name is important because it is part of your brand. It should:

• be able to communicate quickly the products or services you offer,
• be easy to remember and/or distinct,
• and, most importantly, follow Limited Liability Company naming restrictions in South Carolina. 

If you have a name in mind, do some searching to ensure your name is available. The South Carolina Secretary of State has its own name search tool, but if you’re having trouble finding or using it, never fear. We’ve put together a guide on how to conduct an entity search in South Carolina. Make note that searching for your future SC Limited Liability Company name is a necessary step. The SC Secretary of State will not approve a name that is identical to a name already existing in the database.

South Carolina LLC Naming Requirements

There’s also a requirement to add a designator to your official business name. This means adding a suffix such as “LLC” or “Limited Liability Co.” to the end of your new business name. 

Here’s a full list of available South Carolina LLC designators you can choose from:

• Limited Liability Company
• Limited Company
• Ltd. Co.
• L.L.C.
• LLC
• L.C.
• LC

Reserve Your Business Name

If you’ve found the right name but aren’t quite ready to file, you have the option of reserving it with the South Carolina Secretary of State for up to 120 days. Our business name reservation service takes care of securing your South Carolina LLC name, and as part of the service, we also check to see if the name is available.

Get a Matching Domain Name

When you’re coming up with a business name, it’s wise to consider whether you can secure a matching domain name so that any future website can be easily found. We have a tool to help you do a preliminary domain name search, and our domain name registration service can help you secure the online name that will best serve your LLC’s needs.

Get a DBA Name for Your SC LLC

In addition to choosing an LLC name for your business, you may decide to register a “Doing Business As” (DBA) name. You use a DBA when the name the business operates under is different from the registered name. Check out our page on South Carolina DBAs for more specific information.

Step 2: Appoint a registered agent in South Carolina

South Carolina Registered Agent Requirement

Now that your Limited Liability Company name is ready to go, your next step is to choose a registered agent. In South Carolina, there’s a requirement to assign a registered agent for service of process. A registered agent can be an individual agent or a qualified business entity. They must have a physical office in South Carolina where they’re available during normal business hours. P.O. boxes are not acceptable street addresses.

Why You Shouldn’t Be Your Own Registered Agent

In South Carolina, business owners can act as their own registered agent; however, there are many reasons why this might not be a good idea. Instead, consider hiring a commercial registered agent. The benefits are:

• Discreet receipt of legal notices (as opposed to being served a lawsuit in front of a client)
• Ability to move your office location without having to update your registered agent address with the state
• Freedom to leave the office, as the registered agent must be present at the office during all normal business hours

Luckily, we can help here as well. Our South Carolina registered agent partners can fulfill this requirement and give you the peace of mind to keep doing what you love, growing your business.

Step 3: File South Carolina Articles of Organization

Once you have decided on a name and a registered agent assigned, you can officially register your business with the state. To do this, you’ll need to file Articles of Organization. You’ll need the following information:

• Your LLC’s official name. This is your LLC’s official name (including the LLC designator you chose).
• Your LLC’s address. This is your LLC’s office or operating address. If you do not have an office, you can use your personal address.
• Your registered agent’s name and address. This is your registered agent’s legal name and operating address (which must be located in South Carolina).
• List of organizers. This is where you’ll fill out the names and addresses of any other organizers or LLC members (owners).
• Company terms. You’ll check the “term company” box if you’ve decided that the LLC will exist only for a set period of time. If you want the LLC to go on indefinitely, don’t check the box.
• Your LLC management structure. Some LLCs are run by LLC members, and others are run by manager(s) who are appointed by the members. Check this box if your company will be run by manager(s) and provide their names and addresses.
• Your LLC liability. You’ll check this box if one or more of your members have decided to be legally obligated for the company’s debts. Most people leave this section blank, as protection from liability is one of the main reasons to have an LLC.
• Effective date. This is the date you want your LLC to go into effect. Leave this blank if you want the LLC to become effective immediately upon approval.
• Organizer signatures. This is where you and all other members will sign.

Get Qualified Help With Your Paperwork Filing

We know that filing official government documents like this can be intimidating. With our business formation plans, our team can handle the filing for you to make sure it’s done quickly and correctly the first time. Once the state approves your LLC, your paperwork will be available from your ZenBusiness dashboard, where you can keep it and other important paperwork digitally organized. For a more comprehensive business organization, one of our customized business kits can help you keep these important documents organized and looking professional.

Step 4: Create an operating agreement

Next, you’ll want to create an operating agreement for your Limited Liability Company. A South Carolina operating agreement is not a required legal document to conduct business in South Carolina; however, it is strongly recommended. Your company’s operating agreement will detail how your LLC is managed and run, from financial processes to member voting structures and managing employees.

Even if you’re the only member of your LLC, it can be a good idea to create an operating agreement. This document can protect your LLC if you can’t run your business for whatever reason. If you don’t have an agreement, your LLC will by default be run according to South Carolina law, which might not be the best strategy for your company.

Here are a few other key reasons why you’ll want to create an operating agreement:

• It can help further establish that your personal finances are separate from the company’s finances, debts, and liabilities if there are ever any legal issues.
• An operating agreement helps you quickly resolve conflicts (especially between members) by following the management plans outlined within the document.
• An operating agreement allows new members, investors, and managers to understand how the company operates before making any commitments.

How to Create an Operating Agreement

If you’re unsure as to how to start creating an operating agreement for your South Carolina Limited Liability Company, we offer a customizable template to help get you started.

Step 5: Apply for an EIN

You now know how to apply for LLC in SC. Congratulations! You’ve officially registered your LLC in South Carolina! While this is an exciting step, there’s still more to finalize before the setup process is complete. 

Next, you’ll want to register your new LLC with the Internal Revenue Service (IRS) online. This will get you set up to pay taxes, among other things. This means registering for an Employer Identification Number (EIN). This Federal Tax Identification Number is essentially your business’s Social Security number. This number will allow your LLC to file taxes, open business bank accounts, hire employees, and much more.

If your LLC consists of one member with no employees, you may not be required to register for an EIN, but doing so has benefits for your business. By registering for an EIN, you’ll make it even easier to separate your business taxes from your personal taxes and assets. If you need help obtaining one, use our EIN service and we’ll take care of it for you.

Open Your Business Checking Account

Once you’ve secured an EIN, you’ll be able to open a business bank account. Having separate accounts for your business and your personal banking is critical for sorting out your finances at tax time and helps you avoid commingling funds. Commingling funds can not only make your taxes more difficult, but it could also be used against you if someone takes you to court to challenge whether you and your LLC are truly separate entities.

We also offer a discounted bank account for your new business. This allows for unlimited transactions, online banking, a debit card, and more. When you want to authorize others in your business to use the account, we offer a banking resolution template to simplify the process.

For further help managing your new business’s finances, try ZenBusiness Money. It can help you create invoices, receive payments, transfer money, and manage clients all in one place.

Check for Permits and Licenses

After this step, the last thing you’ll want to do is check to see if you need any special permits or licenses to operate your Limited Liability Company in South Carolina. Requirements for permits vary by state and industry. In South Carolina, counties have different requirements, so you’ll need to follow the state’s online process to determine if you’re required to obtain additional permits or licenses. Beyond this website, though, you could still require other federal, state, local, and industry-specific licensing, so you’ll need to do some research or use our business license report and let us do the research for you.