Starting-a-New-BusinessStarting a New Business in South Carolina

South Carolina, specifically the Charleston area, is growing quickly and has a dynamic, pro-business environment. The high level of tourism, desirable lifestyle the geography offers, strategic location, relatively low cost of doing business, and healthy economic growth makes South Carolina a great place for starting a new business.

Business Entity Selection

Selecting what form of business entity is appropriate for a starting a new business is the threshold step in the business development process and has a far reaching impact on the business owner or entrepreneur. The initial decision entrepreneurs and professionals face when starting a new business in South Carolina, is most often influenced by factors related to business tax planning.  However, there are many non-tax considerations that affect the selection of the business entity.

Whether a new business owner should organize his or her business as a partnership, corporation, or limited liability company (or other forms of organization) depends on various tax-related and non tax-related factors.

Types of South Carolina Business Entities

The selection of the form of business entity will have consequences during the life of the business. The selected business entity 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 may determine whether the business will continue to operate after the business owner has ceased to participate in it. As such, it is necessary to consider short-term and long-term goals of the business, and the nature of the business itself, in order to determine the appropriate form of legal entity that best suits the operation of the business.

There is no “one size fits all” form of business entity. Whether new business owners should use partnerships, corporations, or limited liability companies (or other forms of organization) in the operation of their businesses depends on multiple factors.  Contact one of our Charleston corporate lawyers for more information on business organizations.