South Carolina Incorporation

South Carolina Incorporation

Form a South Carolina Corporation

Form a South Carolina (SC) corporation. Incorporate in South Carolina online with the South Carolina incorporation experts at Forming a South Carolina corporation has never been simpler. We will help you form a South Carolina corporation, the right way. To simply incorporate in South Carolina, click on “Order Now.” Please feel free to call us, anytime, with any questions. Incorporate South Carolina today. At LawInc, we prepare your South Carolina corporation Articles of Incorporation, bylaws, stock certificates, stock ledger and more. We can even obtain your South Carolina corporation Tax ID number and file your South Carolina S corporation election with the IRS.

South Carolina Corporation Name

The first step when forming a South Carolina corporation is selecting the business name. South Carolina corporation names:

  • Must contain “Corporation,” “Incorporated,” “Company,” “Limited,” “Corp.,” Inc.,” “Co.” or “Ltd.”
  • May not contain language stating or implying that the corporation is organized for a purpose other than that permitted by its articles of incorporation.
  • Must be distinguishable from the name of any other entity whose name is carried in the records. permits you to choose up to three names and will conduct a name search for your South Carolina corporation, prior to filing.

South Carolina Corporation Formation

South Carolina Filing Procedure: To incorporate in South Carolina, you must file South Carolina Articles of Incorporation with the South Carolina Secretary of State.

South Carolina Corporation Articles of Incorporation: The South Carolina Articles of Incorporation should include:

  • Name of the South Carolina corporation.
  • Purpose of the South Carolina corporation.
  • Name and physical address of the South Carolina corporation’s registered agent.
  • Number and class of shares the South Carolina corporation will have the authority to issue.
  • Address of South Carolina corporation’s principal office.
  • Name and signature of South Carolina corporation incorporators.

South Carolina Corporation Filing Fee: The South Carolina corporation filing fee is $135.

South Carolina Filing Procedure: One (1) executed original and one (1) conformed copy of the Articles of Incorporation. The registered agent must sign a consent to the appointment on the form. The form must also be signed by an attorney licensed in the state certifying to the compliance with all requirements in Chapter 2, Title 33 of the 1976 South Carolina Code of Laws related to the Articles of Incorporation. One (1) executed original of the Initial Annual Report of Corporations.

South Carolina Corporation Authorized Shares: There is no minimum or maximum number of authorized shares since state incorporation fees are not based on the share structure.

South Carolina Corporation Incorporator: Minimum number of incorporators is one (1) and there is no requirement that the incorporator be a resident of South Carolina.

South Carolina Corporation Directors: Minimum number of directors is one (1).

South Carolina Corporation Purpose: It is acceptable to state either alone or with a specific purpose clause, “The purposes for which the corporation is organized shall be to transact any and all lawful business for which corporations may be incorporated pursuant to the provisions of the South Carolina Business Corporation Law.”

South Carolina Corporation Authorized Shares: There is no minimum or maximum number of authorized shares since state incorporation fees are not based on the share structure.

South Carolina Corporation 1244 Stock: Election to have stock classified as IRC Section 1244 stock allows for a substantially larger application of the deduction from business losses to ordinary income than regular stock. With regular stock, you can only offset $3,000 against ordinary income. With the issuance of Section 1244 Stock, the corporation can claim an ordinary loss deduction of as much $100,000.

South Carolina Registered Agent: When incorporating in South Carolina, a South Carolina corporation must maintain a registered agent and office to receive service of process in South Carolina. The South Carolina registered agent should be available, at a South Carolina physical address, during normal business hours to accept important legal and tax documents on behalf of the South Carolina corporation. The registered agent can either be (1) an individual with a physical South Carolina address or (2) a corporation authorized to serve as registered agent.

South Carolina Corporation Post-Filing Requirements

South Carolina Corporation Annual Report: South Carolina corporations are not required to file annual reports. However, failure to comply with South Carolina Department of Revenue tax requirements can lead to administrative dissolution of a South Carolina corporation.

South Carolina Corporate Minutes: South Carolina corporations should hold and document annual shareholder and director meetings.

South Carolina Corporation Taxes

South Carolina Corporation Taxes: For information on South Carolina taxes, visit:

South Carolina C Corporation: When incorporating in South Carolina, all South Carolina corporations formed by default are “C” corporations. A South Carolina C corporation is a South Carolina corporation that has not made an election to be an “S” corporation. The term C corporation is specifically used because the entity is taxed under subsection C of the IRS code. South Carolina C corporations are taxed at two levels (“double taxation”). This means that the corporation itself pays its own tax when it makes money (the first tax). The owners or shareholders are then taxed again when they are paid a salary or dividend by the corporation (the second tax). Despite double taxation, South Carolina C corporations offer many planning and benefit opportunities.

South Carolina S Corporation: A South Carolina S corporation is a corporation that has made an election with the IRS to be treated for tax purposes as a “pass-through entity.” This means that corporate profits and losses are passed through to the shareholders (owners) who report them on their own personal tax returns and pay the tax at the individual level. The corporation pays no federal income tax at the corporate level. South Carolina S corporations are not subject to the double taxation C corporations encounter. South Carolina recognizes federal s corporation status.

These are the 3 main advantages of forming a South Carolina S corporation:

  1. No double taxation: One of the main advantages of South Carolina S corporation status is that it avoids the double taxation that occurs with a regular South Carolina C corporation. In a South Carolina C corporation, the corporation pays income tax on its profits and, if those profits are distributed to shareholders, the shareholders pay income tax on the distribution.
  2. Loss deductions: The availability of losses. Shareholders of a South Carolina S corporation generally may deduct their share of the corporation’s net operating loss on their individual tax returns in the year the loss occurs. Losses of a South Carolina C corporation, however, may offset only the corporation’s earnings.
  3. Self-employment tax savings: By electing S corporation status, only the earnings actually paid out to you as salary are subject to payroll taxes; money left in the business is not subject to payroll taxes or self-employment tax. All income passes through, but its tax status depends on whether it is classified as salary or ordinary income.

Federal Tax Identification Number/Employer Identification Number (EIN): The Federal Tax Identification Number, also known as the Employer Identification Number (EIN) is a number that is assigned to a business by the Internal Revenue Service. An EIN is like a Social Security Number for a business. It is a requisite for certain business functions such as opening bank accounts or hiring employees. When incorporating in South Carolina, South Carolina corporations should obtain an EIN. The federal taxpayer identification number of the corporation should be included in the Articles of Incorporation. However, the failure to include the number will not cause the Secretary of State to reject the Articles of Incorporation for filing.

South Carolina Corporation Dissolution

South Carolina Corporation State Dissolution Requirements: A South Carolina corporation can be voluntarily dissolved by filing Articles of Dissolution with the South Carolina Secretary of State. The fee is $10.

South Carolina Corporation Federal/IRS Dissolution Requirements: Corporations are required to file IRS Form 966, Corporate Dissolution or Liquidation. A final tax return should be filed with the IRS. Form 966 should be filed along with the final tax return. Final state tax returns may also need to be filed. Follow up with an accountant regarding all tax related requirements.