Filing a South Carolina Corporation
Many business owners find a South Carolina Corporation to be in their best interest. A Corporation could offer numerous tax benefits to owners. It also allows owners to gain instant credibility with customers. However, many new owners are confused about the administrative steps needed to create and operate a South Carolina Corporation.
Steps To Filing a Corporation
Choose A Name
The first thing that those looking to form a business must do is choose a name for their entity. The state of South Carolina does not allow two companies to share a name. To ensure the name they’ve adopted is unique, owners should check out the DoMyLLC Name Availability Check Page. Additionally, South Carolina requires companies to include an indicator in their name. In this case, owners will need to add something like, “Incorporated,” “Corporation,” “Company,” or “Limited” to their name. They could also add an appropriate abbreviation, such as “Inc.”
Choose An Agent For Service Of Process
After choosing a name for the company, owners will need to select a registered agent. The registered agent is responsible for accepting all legal correspondence on behalf of the company. As you can imagine, the role of the registered agent is vital to the success of a new Corporation. To ensure that they choose a quality registered agent, many owners hire a professional third-party company, such as DoMyLLC.
File Articles Of Incorporation & Pay Filing Fees
Once owners have chosen a name and registered agent, they can begin filing Articles of Incorporation with the Secretary of State’s Division of Business Filings. The cost to do so is $135, this consists of the $110 filing fee and the $25 initial report fee. Information that owners must provide on these forms includes:
- The name of the company
- Name, address, and signature of the initial registered agent
- Classes of shares and the number of shares allocated to each class
- The right, preference, and limitations of each share class
- Effective date
- Optional provisions
- Name, address, and signature of each incorporator
- Signature, address, and phone number of a South Carolina attorney who certifies the proposed Corporation is compliant
File Initial Report
South Carolina requires companies to file Initial Report. Companies must do so when filing Articles of Incorporation. The fee to do so is included with the Articles of Incorporation filing fee.
Create Corporate Bylaws, Appoint Directors And Hold Meetings
After filing the Articles of Incorporation and Initial Report, members should hold an initial corporate meeting. In attendance at this meeting should be the initial directors who were listed on the Initial Report. These directors will serve in this capacity on the board until the next annual meeting of shareholders, where directors are up for election.
Once in place, the board can define the roles of officers and elect individuals to serve in these positions. Directors should also draft corporate bylaws. Bylaws are a private document that serve as an internal operating manual. The South Carolina Corporation cannot exist or conduct business until the board of directors has adopted a set of bylaws. Additionally, many insurers and banks request that a Corporation provide proof of its bylaws before proceeding with a deal.
While at the initial corporate meeting, the board of directors should also authorize a stock issuance. They are the only entity with authority to do so. The Articles of Incorporation previously defined the amount of stock that they can issue. The board should also maintain a detailed stock ledger, which will provide clarity to investors and protect the corporate veil.
Obtain Employer Identification Number
The South Carolina Corporation will also need to secure an Employer Identification Numbers from the IRS. The company will need this number to file taxes, hire new employees, and open a business bank account.
File South Carolina Required Annual Reports
Companies in South Carolina are fortunate in that they do not need to file an Annual Report.
Although they do not need to file an Annual Report, officers must ensure the South Carolina Corporation meets other yearly requirements. For instance, the company must file state and federal taxes each year and renew all licenses and permits.
How DoMyLLC Can Assist With Streamlining The Process
At DoMyLLC, we understand how overwhelming it can be for new business owners to form a South Carolina Corporation. That’s why we offer comprehensive services which include:
- Name availability check
- Prepare Articles of Incorporation
- File Articles of Incorporation with the Secretary of South Carolina’s office
- Provide sample bylaws, meeting notices and minutes for meetings
- Dedicated account manager
- Unlimited customer support
By handling your administrative needs, we allow you to focus your efforts on growing your business. Be sure to contact us today to learn more.