To launch a business in South Carolina you’ll need to pick a unique company name. In South Carolina, as in most states, you can’t pick any name you want. First, you must see if your desired business name is already in use in the state. Why? All business names in South Carolina must be different. You’ll need to perform a business name search to ensure that you can use your preferred name. If it is already in use, you’ll have to use something different.
We’ll explain how a business search works and provide some tidbits and tips to get your LLC off the ground in South Carolina.
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How to check business name availability in South Carolina
As mentioned, you can’t just pick any name for a South Carolina business, it must be unique and available. How do you find out if a certain name is available? Here’s how:
1. Go to the South Carolina Secretary of State website
The South Carolina Secretary of State website has a simple search tool that you can use to check name availability.
2. Specify search
To conduct the search, click on the drop-down menu and select “exact match.”
3. Enter keywords
Next, just enter your proposed name in the search bar.
4. Run the search
Next, just click “Search.” The site will return results that have an exact match. If there’s an exact match, the name is not available. If there’s no match, the name is available for you to use.
South Carolina law says no two businesses in the state can have the same name, so you should keep searching for names until you find one that’s available. And keep in mind that adding “LLC” or “Company” to a business name that is already in use will not result in a new version unique enough to count as it’s own separate name.
5. Consider reserving a name
After running a South Carolina business name search, you have two options: You can reserve a name or you can register the name. You should reserve the name if you aren’t planning to set up the business immediately.
South Carolina allows business owners to reserve a name for 120 days for $25.
To do so, you’ll fill out a quick form and provide the payment. The form can be found at the above link under t “Application to Reserve a Limited Liability Company Name.”
Again, you don’t need to reserve a name if you plan to officially set up your business with the state of South Carolina, but if you’re just doing some homework and plan to set up your business later, reserve the name now so it’s not taken when you’re ready.
6. Check domain name availability
We created a tool that makes it easy.
How to name your South Carolina business
Now that you know a little more about the business landscape in the state, it’s time to start generating a list of names for your business. To do so, follow these steps:
1. Write down basic details about your business
Start by creating a verbal picture of your business. Think about what your business will offer and who it will serve. Will you sell a specific product or service? Who’s going to buy it? Jot down a few details about your company as a starting point.
Next, start creating a list of adjectives that describe your business. Think in terms of keywords. What keywords would your customer use to find the product or service that you offer? Write them down.
2. Stay away from initials and hard-to-say words
There are plenty of businesses that include initials, like A&J Plumbing, but consider upping your game with something a bit more creative and descriptive.
The same goes for names that are hard to say. If your last name is Stackowaski, for example, it’s not conducive to a business name because it’s too hard to pronounce.
3. Don’t pigeon-hole your business
Be careful not to select a name that limits your company’s potential growth. Think about where your business will be in five, ten, even twenty years, and take that into consideration when creating a name.
A company named Bob’s Bargain Books, for example, is a good name, but what if they plan to sell vintage records and cassettes down the road? The name only refers to books, so when vintage music is added people won’t associate it with the store.
4. Consider using a name generator
At this point, you probably have a list of a few ideas. Rather than brainstorm a bunch of different combinations, why not try a name generator? You simply enter a few of the adjectives that you came up with into the search bar and you’ll get a list of possible names.
Name generators can take some of the hassles out of creating a name. Most name generators will only show you available names too, which is helpful.
Check out some of Namechk’s name generators below:
What kind of business structure is right for your South Carolina company?
As you research available business names in South Carolina, you’ll also want to think about what kind of business you want to establish. There are a handful of options to choose from, but some of the most common are Sole proprietorship and LLC.
- A sole proprietorship is ideal for small businesses with no employees that want to test their business out. There’s virtually no paperwork to set up this kind of business, which is a plus. However, a sole proprietorship is not a separate business entity, which means you’re financially and legally responsible for any problems that might arise.
- An LLC, or limited liability company, provides a certain amount of liability protection. Your personal assets and your business are separate with this business structure, which means if the business is sued or goes bankrupt, you will not be forced to use your personal cash reserves to bail the business out.
Steps to register your South Carolina business
Ready to set up your business in SC? Here’s what you do:
1. File your Articles of Organization
Visit the South Carolina Secretary of State website and fill out the Articles of Organization. Scroll down to “Articles of Organization §33-44-202 and §33-44-203” to find the form. To fill this out, you’ll need to have an available business name, address, and contact information.
2. Name a registered agent
You’ll also need to name a registered agent. A registered agent is the point-person for your company who will receive important documents like tax notices or legal documents.
A registered agent must be trustworthy and be available during regular business hours when documents are delivered. The business owner can serve as the registered agent in South Carolina, or another person or company can be named.
You might decide to name your accountant or co-founder, for example. You can also hire a registered agent service to serve in this role. Northwest Registered Agent, ZenBusiness, and Bizee are a few examples. These companies will receive documents on your behalf and notify you of their arrival.
3. Pay the filing fee
Every state charges a filing fee to file LLC formation documents with the government. In South Carolina, the cost is $110.
4. Wait for approval
South Carolina will review your application and typically provides approvals within five business days. Once approved, your business is officially set up.
Our picks of the best registered agent services
South Carolina small business facts
Before you start considering business name availability in South Carolina, take a look at these small business statistics from the U.S. Business Administration:
- South Carolina small businesses employed 817,008 people, or 43.8% of the private workforce, in 2017.
- The total number of banks decreased by 5 between June 2018 and June 2019 to 47 banks. During the same period, the number of banks with assets under $1 billion decreased by 5 to 42 banks.
- The number of proprietors increased in 2018 by 2.8% relative to the previous year.
- Small businesses created 44,307 net jobs in 2019. Firms employing fewer than 20 employees experienced the largest gains, adding 25,011 net jobs. The smallest gains were in firms employing 20 to 99 employees, which added 8,994 net jobs.
- Private-sector employment decreased 13.6% during the 12-month period ending in April 2020. This was below the increase of 1.5% during the prior 12-month period.
- Firms with 20 to 99 employees have the largest share of small business employment. Figure 1 provides further details on firms with employees.
- The median income for self–employed individuals at their own incorporated businesses was $50,386 in 2018. For self– employed individuals at their own unincorporated firms, median income was $22,550.
FAQs
To further help entrepreneurs, check out these frequently asked questions about starting a business in South Carolina:
Why is it so important to check on business name availability?
South Carolina will not allow two businesses in the state to have the same name. There are many reasons for this, but at its core, it’s to avoid any confusion. For example, if someone plans to sue Bob’s Fruit Stand and there are two of these companies in the state, things can get complicated quickly.
All businesses must have a unique name. And, you can’t just add a hyphen to a name to make it different. Each name must be “distinguishingly different.”
Does South Carolina have an annual LLC tax?
No. Unlike most states, South Carolina does not require LLCs to file an annual report or pay an annual fee.
Are South Carolina Businesses required to get an Employer Identification Number (EIN)?
In most cases, yes, an EIN is required for businesses in South Carolina. You can follow these instructions from the IRS to apply for an EIN for your business.
Does South Carolina require an operating agreement?
No. The state of South Carolina does not require small business owners or startups to submit an operating agreement when registering a business.
However, most business experts say it’s a good idea to create one. An operating agreement, as the name suggests, explains how a company operates. It explains daily operations, who makes decisions, and how profits and losses are managed.
This document is usually created during the beginning stages of a business and updated as the business grows.
A lawyer can help you draw an agreement up or you can always find a template online to get started.
Are there financial assistance programs for startups in SC?
Yes. Like many states, South Carolina has put several funding streams in place to help new entrepreneurs. Check out this list of financing options.
There are also federal loan or grant programs. You can search for opportunities on USA.gov. Although, be aware that the application process can be lengthy and the competition is fierce.
Is a retail license required in South Carolina?
Yes, in most cases, a retail license is required for businesses in South Carolina. Check out these resources to help you determine whether your business will need one and how to get it.
How do you dissolve a business in South Carolina?
While you’re excited to start a business, it’s a good idea to know how to dissolve it – on the off chance things don’t go as planned.
To dissolve a business in South Carolina, a business owner must pay all past tax debts, file a final tax return with the state, and notify certain agencies of the closure. The State of South Carolina Business One Stop has step-by-step information on its site that owners should reference.
Can the name of a business entity be changed?
You may file Articles of Amendment to change the name of a business entity presently on file with the Secretary of State’s office.
Do sole proprietorships get filed with the Secretary of State’s Office?
No. Sole proprietorships do not file with the Secretary of State’s Office.
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