South Carolina is growing quickly and has a dynamic, pro-business environment.  The Charleston area continues to be one of the most popular Southern destinations in the country, and the readers of Conde Nast have voted Charleston as one of the top 10 travel destinations for eighteen consecutive years.  The friendliness to business, coupled with the laid back lifestyle, strategic location, relatively low cost of doing business, and healthy growth make South Carolina a great state to start a new business. 

Selecting the appropriate form of business entity is not only the threshold step in the small business planning process but it also has far reaching impact on the business owner or owners.

The Various Forms In Which Business May Be Conducted

The initial decision faced in starting a new business in South Carolina is the selection of the form in which the business is to be operated.  This decision is most often influenced very strongly by factors related to tax planning.  However, there are many nontax considerations that affect the selection of the legal entity.

The selection of the form of business entity will have a variety of consequences during the life of the business.  For example, it may affect whether the business owner will be liable for the obligations of the business; it may influence what assets the business owner will transfer to the business; and it will determine to a great extent whether the business will continue to operate after the business owner has ceased to participate in it.  It is therefore necessary to consider both the short-term and long-term goals of the business and the nature of the business itself in order to determine the form of legal entity best suited for the operation of any given business.

Start-up businesses may be conducted as a sole proprietorship, a general or limited partnership, a joint venture, in a corporate form, in one of several forms of special business structures, such as professional corporation, or as a limited liability company.

Why The Choice of Business Entity Is Important

      »  Tax Treatment
      »  Business Governance
      »  Ownership Transferability
      »  Compensation Structure
      »  Ease of Formation
      »  Required Business Formalities
      »  Classes of Equity

Below is a sample listing of the more popular business forms available in South Carolina. 

TYPE OF south Carolina BUSINESS ENTITY

      »  General Partnership
      »  Limited Partnership
      »  Limited Liability Partnership
      »  Limited Liability Company
      »  Corporation
      »  Statutory Close Corporation
      »  Professional Corporation 
      »  Non-Profit Corporation