South Carolina Business Formation Services in Myrtle Beach

• General Partnership - This is a type of unincorporated business entity where two or more individuals own and manage the business and are personally liable, both jointly and severally, for the debts and liabilities of the business. Like a sole proprietorship, a general partnership does not pay tax on its income but its profits and losses are passed through to the partners and reported on the individual partner’s tax returns. The specific terms of the partnership are governed by a partnership agreement. Unless noted in the partnership agreement to the contrary, any general partner can act on behalf of the partnership and make decisions that are binding on all partners in the partnership.
• Limited Partnership - This type is similar to a general partnership, however, it has two classes of partners: It has at least one general partner and one or more limited partners. Limited partners do not participate in the management of the partnership, however, a limited partner’s liability is limited to the amount of their investment in the partnership. In South Carolina, limited partnerships are governed by a limited partnership agreement and must be registered with the South Carolina Secretary of State’s office.

Incorporating Your Business in Myrtle Beach

A corporation is a legal entity that exists under authority granted by state law. A corporation has its own identity, separate from its shareholders or owners, and as such can be sued, enter into contracts, and buy or sell real estate or property.

A corporation is responsible for its debts as well as the business debt liability of its shareholders, officers, and directors. Liabilities are generally limited to the assets of the corporation. A corporation has perpetual existence and is not affected by the death of shareholders, directors, or officers.

Corporations are taxable entities that pay taxes on whatever profits exist after salaries and other expenses are paid. Regular corporations or “C” corporations pay taxes at a special corporate rate. Corporations whose shareholders are eligible to make a “Subchapter S” election by filing Form 2553 with the Internal Revenue Service can elect to be classified as an “S-Corporation” and business profits and losses will be reported to the IRS on a Schedule K-1 resulting in any profits and losses passing through to shareholders individual tax returns. Certain restrictions exist, however, on whether a corporation can be an “S-Corporation”.

To form a corporation in South Carolina, Articles of Incorporation must be signed by a licensed attorney and filed with the South Carolina Secretary of State’s office. In addition to filing articles of incorporation, corporate bylaws must be created stating the terms and conditions for the governance of the corporation.

An attorney from Joye, Nappier, Risher, & Hardin can guide you through this process and help ensure that your corporation has been set up properly and all necessary documents have been created.