Why form a South Carolina Corporation?
When you form a South Carolina Corporation, you are joining an exclusive group of individuals who have lofty goals for your company. Many of these individuals who want to grow their company want to do so without fear of their personal assets being exposed to any lawsuits. The main reason why corporations are set up in South Carolina is that the corporation does provide individuals with the asset protection afforded to them by the laws of South Carolina. When a corporation is formed, a separation occurs between the individuals who own or run the company from the company itself.
Guidelines on naming your new corporation
A Corporation formed in the state of South Carolina must have as its legal descriptor, Corporation, Incorporated, Corp, or Inc. A South Carolina entity can’t share the same name of another corporation or a LLC already on file or reserved in the state. The name of the corporation must be distinguishable from another filing already on file. In determining distinction between entities, the Secretary of state will ignore articles (an, a, the, or), use of capitals, punctuation, and use of spaces. Also slight changes in the word such as adding “ing” or “ed” will not provide distinction.
How do I set up my Corporation?
A South Carolina Corporation is formed by filing the appropriate forms such as the articles of incorporation. These forms must also be signed by not only the incorporator but also by a licensed attorney in the state of South Carolina. This is the only state which requires an attorney signature. Be sure that the registered agent address is that of a physical address in South Carolina. Attach for CL-1 to your filing and submit it to the Secretary of State for approval along with any fees.
Do I need a sub chapter S filing?
This filing will be up to the needs of the individual and the company. This filing with the IRS by using form 2553 allows for the corporation to change is tax structure to that of the LLC. This allows the corporation to have "pass through" taxation so that all income is reported on the individual owner's tax return.
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