Our all-inclusive South Carolina LLC Operating Agreement template simplifies your establishment and safeguards your commercial interests. It’s designed to provide a solid foundation for your business.
Key Takeaways
- While South Carolina doesn’t mandate an LLC Operating Agreement, it’s often advisable for many Limited Liability Companies.
- Utilize our free South Carolina LLC Operating Agreement template to ensure compliance with state regulations.
- To form an LLC in South Carolina, you’ll need to file Articles of Organization with the South Carolina Secretary of State, appoint a registered agent, and fulfill the required filing fee.
South Carolina LLC Operating Agreement Templates by Type
Single Member LLC
Basic Single Member LLC Operating Agreement
Used 4,920 times
Are you required to uphold your limited liability corporation status in accordance with state law? If the business is sued, the owner’s assets may be safeguarded by this agreement.
Use this operating agreement template in South Carolina when there is only one owner of the LLC.
Multi Member LLC
Multi-Member LLC Operating Agreement Template
Used 4,872 times
Ensure that your newly formed LLC is run the right way by having a multi-member operating agreement in place.
Utilize this operating agreement template in South Carolina when multiple individuals or entities co-own the LLC.
50/50 LLC
50/50 LLC Operating Agreement Template
Used 4,872 times
This free 50/50 LLC Operating Agreement template for businesses with equal ownership.
Employ this operating agreement template in South Carolina when two equal partners equally share ownership and management responsibilities within the LLC.
Member-managed LLC
Member-Managed LLC Operating Agreement Template
Used 4,919 times
A manager is chosen by the firm owners to oversee day-to-day operations in a manager-managed LLC. Use this Member-Managed LLC Operating Agreement Template right away.
Opt for this operating agreement template in South Carolina when the LLC’s management responsibilities are delegated to appointed members.
Legal Requirements
- In the absence of an Operating Agreement in South Carolina, disputes are managed by the default Limited Liability Company operating rules stipulated in the state law (SC Code § 33-44).
- These state rules may suffice for straightforward business arrangements but may not be ideal when significant differences exist in members’ contributions and ownership percentages.
- The South Carolina state rules may not meet expectations if you seek more flexibility in defining operating rules and roles beyond the state’s standard provisions.
- It can help maintain a clear distinction between personal and business affairs, which is especially beneficial for preserving the limited liability status of single-member LLCs.
- Even if the South Carolina state doesn’t require it, it could still be necessary when interacting with business partners, investors, or financial institutions. These external entities often expect a formal agreement to understand the operations and how potential disputes are resolved.
How to Form LLC in South Carolina
Forming an LLC in South Carolina involves several steps. Here’s an all-around guide on how to do it:
Choose a Business Name:
- Choosing a name for your company is an important decision, as it’ll represent your brand. It’s recommended that you choose a unique and distinct name to ensure that it’s memorable and stands out. Additionally, it’s important to ensure that your name complies with the state’s naming regulations. You can verify your name’s availability by searching the South Carolina Secretary of State’s business name database.
File Articles of Organization:
- It’s the official document that legally establishes your Limited Liability Company. It includes basic information about your company, including its name, registered agent, and principal office address. You can file this document online with the Secretary of State of South Carolina or download the PDF form and submit it by official mail.
Appoint a Registered Agent:
- A registered agent is a person or entity responsible for receiving legal documents and correspondence on behalf of your company. In this state, your registered agent must be a resident or a business authorized to operate.
Draft an Operating Agreement:
- An Operating Agreement is a legal document that outlines the operational procedures and business conduct. It includes ownership stakes, initial funding, capital investments, and other pertinent records.
Obtain an Employer Identification Number (EIN):
- An EIN, or a Federal Tax Identification Number, is required for most LLCs to file taxes, open a bank account, and hire employees. Getting an Employer Identification Number (EIN) is free and can be done online at the Internal Revenue Service (IRS).
Open a Bank Account:
- Opening a separate bank account for your Limited Liability Company is crucial for keeping your personal and business finances separate. This makes tracking business expenses easier and simplifies tax filing. You’ll typically need your EIN and Articles of Organization to open a business bank account.
File a Beneficial Ownership Information Report:
- This is a unique requirement for South Carolina. Once your LLC is established, you must submit a report containing Beneficial Ownership Information. This report includes pinpointing information about those who indirectly or directly control or own a company.
South Carolina LLC Laws
- No State Income Tax: This state doesn’t impose a state income tax on LLCs. Instead, the profits and losses are passed to the LLC owners, who report them on their tax returns.
- Annual Reporting Requirements: LLCs in South Carolina aren’t obligated to submit an annual report, unlike in most other states.
- Requirement of a Registered Agent: The state requires all business entities to list a Registered Agent. In South Carolina, the physical address of the Registered Agent is required.
- Foreign LLC Registration: If your LLC is formed in another state but wishes to conduct business in South Carolina, you must register as a Foreign LLC in South Carolina.
- Real Estate Considerations: If you’re considering investing in rental properties in South Carolina, forming an LLC can provide benefits such as limited personal liability and potential tax advantages.
- Employment Laws: South Carolina has specific employment laws that govern wages, hours worked, leave laws, and employer obligations. Employers must adhere to the state and federal laws.
