You should incorporate your company in a state where you do business and where the advantages of incorporating in that state outweigh any disadvantages. If you have a start-up venture, you will likely find South Carolina to be friendly toward businesses. A South Carolina business attorney can provide guidance on where you should incorporate your business.
Why Many Corporations Register in South Carolina
You are in business to make a profit. Even non-profits have to make enough money to keep the lights on and pay their other bills. In a state with high income and property taxes on corporations, you will have less of your hard-earned profits to take home.
South Carolina does not levy taxes on corporations for your inventory. Also, our state has no wholesale tax, unitary tax on your profits in other states or countries, or property tax on corporations. There is no local income tax on these business entities. South Carolina has a business-friendly corporate income tax code.
Benefits for S Corporations and LLCs in South Carolina
Corporate status is not the best structure for every business. If you own an S corporation, South Carolina offers these incentives:
- You can change the ownership of the S corporation without having to stop the operations of the business by buying, selling, or gifting the stock.
- If one of the stockholders dies, the S corporation can continue operations because these business entities have a “life” that is independent of its stockholders.
On the other hand, limited liability corporations (LLCs) can enjoy these bonuses in our state:
- You will not have to take or maintain formal papers like minutes or resolutions, so running your business is less onerous. Corporations still have to follow those formalities, but not LLCs.
- Your local area in South Carolina might offer property tax abatement, textile revitalization credits, or other tax exemptions.
- Our state’s many programs for the favorable tax treatment of LLCs include such options as tax credits for corporate headquarters, research and development, investments, jobs, and other incentives.
Depending on your company’s industry, you might be eligible for additional incentive programs when you incorporate your business in South Carolina.
A Low Cost of Doing Business
Sometimes, one of the best ways to boost your bottom line is to decrease your expenses. Many areas within our state have cost of living numbers that are below the national average, so you and your workers will be able to live better than you could elsewhere, and the expenses to run your business will be lower than in many other places.
Real estate costs less in our state than in many other locations, with corresponding lower property lease expenses. Buying or leasing the physical facilities for your corporation is one of the highest ongoing bills most owners face. Reducing this expense can make the difference between success or failure, particularly in the early years when launching a start-up company.
A South Carolina business attorney can advise you on the laws that apply to your industry, draft your incorporation documents, and serve your company with ongoing guidance as the laws change. Contact our office today.