Business client and lawyer discussing documents

What is a Non-Disclosure Agreement and When Should a Business Use One?

There is a lot of misinformation about non-disclosure agreements, and that confusion can lead to business disputes. The short version is that a person who signed a non-disclosure agreement cannot talk about the information the agreement protects with anyone who is not authorized to discuss the topic. Of course, you need to know more than that about non-disclosure agreements. 

Let’s explore what a non-disclosure is and when a business should use one. A South Carolina business contracts attorney can answer your questions about these documents and draft the right kind of non-disclosure agreement for your company.

An Overview of Non-Disclosure Agreements

Non-disclosure agreements (NDAs) go by several names, for example, they can also bear the title of proprietary information agreements (PIAs), confidentiality agreements (CAs), and confidential disclosure agreements (CDAs). If drafted properly, NDAs are enforceable in court and can protect the information the company wants to keep secret.

Situations In Which Businesses Use NDAs

Companies require entities who are not employees of the business to sign confidentiality agreements to protect the company from the disclosure of private business information in these situations:

  • When a prospective buyer wants information about the business that the general public does not know, the company might require the potential purchaser to sign an NDA.
  • Vendors, suppliers, and prospective investors also might have to sign a confidentiality agreement before getting access to private information about the company.

Many companies routinely require employees to sign confidentiality agreements, particularly if their job duties require the workers to access private information like customer lists, client data, trade secrets, marketing plans, and other topics that could harm the business or benefit competitors if leaked.

Before the advent of non-disclosure agreements, a person could go work for a business, access their confidential information, and then set up a new business in competition with their former employer. NDAs prevent that outcome and provide legal remedies for the employer if a former worker misappropriates protected information.

The company can require new employees to sign confidentiality agreements as a condition of their employment. The company might have to offer existing employees some type of consideration to sign NDAs if they have not signed one for the company in the past.

Enforceability of Confidentiality Agreements

An NDA might not get enforced by the court if the judge determines that the company is using the document to restrict more than they need to or to take away legal remedies of the worker. Here are some examples of NDAs that might be unenforceable:

  • The agreement has an unreasonable duration, like restricting the employee from opening or working for a competing business using similar business processes for 20 years after leaving the company.
  • The geographic scope is too large, for example, banning the worker from engaging in similar work anywhere in the United States, even though the company’s clientele were only located in one city in South Carolina. 
  • Banning the employee from ever discussing anything they learned on the job, no matter how mundane, would be too broad or too restrictive. A department store does not need the same protections as a government intelligence agency, by way of example.
  • Prohibiting the worker from reporting the company for breaking the law or exercising their legal rights if the company engaged in illegal activity against the employee. A business cannot force workers to sign away their right to be free from illegal discrimination or other rights as a condition of employment.

There are many other reasons why an NDA might be unenforceable, which is why you will want to work with a South Carolina business attorney to tailor your non-disclosure agreements to your needs. Reach out to our office today for help with your case.

Business Lawyer discussing legal documents with client

Tips for Avoiding Litigation in Business

Getting embroiled in litigation can cause great damage to your company, both in terms of massive legal fees and negative repercussions to the reputation of your business. As Benjamin Franklin said, an ounce of prevention is worth a pound of cure. It is best for your company to avoid getting sued or having to file suit.  

Here are some tips for avoiding litigation in business. You can talk with a South Carolina business attorney about how to implement these strategies in your company.

Be Proactive

Some business owners or managers think they do their job well if they respond to problems promptly. Actually, they would do their job better if they looked for potential problems and fixed them before they happened. This approach is similar to keeping your car well-maintained rather than waiting until you break down at the side of the road.

Listen to feedback and suggestions from your employees and customers. The compliments can be useful to analyze what your company is doing right so that you can try to replicate that behavior in other areas of your business. Complaints give you an opportunity to fix small problems before they develop into significant issues that could lead to litigation.

Return to the “Customer First” Model

In the past, many businesses operated under the principle of “the customer is always right.” Of course, the customer was not always right, but business owners would bend over backward to meet the expectations, however unreasonable, of the customer base. When the company made an honest mistake, it would go to great lengths to make it right.  

This approach avoided litigation and generated fantastic word-of-mouth benefits because the business got a reputation for treating its customers like gold. Going the extra mile might cost a little more initially, but the money it saves in preventing lawsuits and the money it makes for your company when it has an excellent reputation will be worth the expense. People do not tend to sue companies that treat them well.

Hire Carefully

If you make the mistake of hiring a difficult or litigious person to work for your company, it can be challenging to terminate the person’s employment without facing a lawsuit. You will want to perform a thorough background check before extending an offer of employment. You might not receive useful information from prior employers if they are concerned about getting sued by the job candidate. 

If you have legitimate concerns, think twice about hiring the individual. Always use a probationary period with new employees. Have the individual sign a document that gives you the right to terminate the employment during or at the end of the probationary period with or without cause. 

Use Alternative Dispute Resolution Methods

Mediation or arbitration can be useful ways of resolving disputes. These methods can be less expensive than full-blown litigation. Also, alternative dispute resolution can preserve the working relationship with the employee, vendor, or customer. 

Another option is to have a South Carolina business attorney negotiate a settlement of the claim against your company. You might be able to use any of these three methods to de-escalate the dispute and resolve the conflict amicably. Contact our office today for help with your case.

Business' paperwork on a table for a company

Penalties for Breach of Fiduciary Duty

Breach of fiduciary duty is an increasingly common accusation raised among people in business when they have disputes with their partners, managers, and employees. Usually, the penalties for breach of fiduciary duty are financial, since violations of a fiduciary duty often cause economic losses.

If you suspect that someone has breached their fiduciary duty, you will want to talk to a South Carolina business attorney about your options. These situations are not one-size-fits-all. The appropriate remedy in one dispute might be quite different from the outcome in another.

An Overview of Fiduciary Duty

A person has a fiduciary duty when they have a responsibility to put the interests of another individual or business ahead of their own interests. For example, business partners have a duty to take actions that are in the interests of the partnership and their partners. If one partner acts in a way that benefits the partner at the expense of the other partners or the partnership, the partner has breached their fiduciary duty.

What Can Constitute Breach of Fiduciary Duty

Breaches of fiduciary duty typically vary based on the role of the violating party. In other words, partners tend to perform different actions than employees or members of the board of directors when they violate their fiduciary duties.

Here are a few examples of conduct that can constitute a breach of fiduciary duty:

Partners

A partner might take company funds or assets for their personal use. The partner might commit actual embezzlement or merely mismanage partnership accounts. Partners also need to disclose conflicts of interest and refrain from engaging in self-dealing like funneling contracts away from the partnership to their personal business entity. 

When a partner is negligent or takes illegal actions, the partner could breach the fiduciary duty to the partnership by damaging the company goodwill and exposing the partnership to liability. 

Board of Directors 

Members of the Board of Directors face some of the same opportunities for breaching their fiduciary duties as a business partner, like conflicts of interest and self-dealing. In addition, the board of directors might violate shareholder agreements about voting rights, payment of dividends, and access to records.

Employees and Agents

When someone acts on behalf of someone else as their agent or employee, they have a fiduciary duty not to use the relationship to harm the principal or employer. Common types of fiduciary breaches include theft, embezzlement, colluding with a competitor, filing fraudulent invoices or expense reports, or sharing the employer’s customer lists and trade secrets.

The Importance of the Partnership Agreement, Employment Contract, and Bylaws

The partnership agreement, employment contract, bylaws, or other applicable document might address the issue of what penalties are available in the event of a breach of fiduciary duty. You will need to look to these documents first when exploring your options against the person who violated their fiduciary duty. 

Taking Legal Action for Claims of Breach of Fiduciary Duty

Breach of fiduciary duty is typically a common law issue, meaning that there is an absence of specific criminal statutes that create a specific offense called breach of fiduciary duty. Instead, the person violating the fiduciary duty could face criminal charges or a civil lawsuit for fraud, embezzlement, theft, or other conduct. 

The criminal penalties would depend on the offense charged. Civil penalties usually bear some relationship to the financial harm caused by the breach of fiduciary duty. 

A South Carolina business attorney could talk to you and help you seek to recover the economic harm that you or your business entity suffered as a result of the breach of fiduciary duty. Contact our office today for help with your case, we gladly offer a free consultation.

Business attorney writing

Dissolving an LLC in South Carolina – Watch Out for These Four Things

It is relatively easy to set up a limited liability company (LLC) in South Carolina. After an LLC has served its purpose, or if you created an LLC for a start-up that never materialized, you might wish to dissolve the LLC.

A South Carolina business attorney can provide legal advice on the steps you need to take. When dissolving an LLC in South Carolina, watch out for these 4 things. 

Doing Nothing

One of the worst ways to dissolve an LLC in South Carolina is to do nothing and hope that the business entity will simply fade away on its own. Failing to fulfill your legal obligations of filing reports, preparing tax documents, sending collected sales tax to the appropriate authorities, or other missteps could land you in hot water. 

Dissolving an LLC Is Different from Winding up the Business

Dissolving an LLC in the state of South Carolina means that you go through a formal process called “dissolution” in which you end the legal existence of the business entity. Voluntarily dissolving an LLC of which you are a member is preferable to a court ordering an involuntary dissolution or having the state issue an involuntary administrative dissolution because the LLC did not fulfill legal obligations like paying taxes.

When you complete a voluntary dissolution, your personal assets can be protected from creditors of the LLC. You might not have any such protection with an involuntary dissolution.

The operating agreement of the LLC will probably provide guidance on how to dissolve the company. You will want to make sure that you not only follow all procedural dissolution requirements contained in the operating agreement, but that you also create proof that you did so, like calling a formal meeting, providing proper notice of the meeting and the purpose for the meeting, and recording the decision of the LLC members at that meeting. 

Winding up the business of the LLC involves paying valid debts, creditors including LLC members, and all outstanding taxes. After completing these payments, the LLC can then distribute its assets. South Carolina has an LLC Act that requires the payment of debts, creditors, and taxes before the distribution of assets.

Notice of the Dissolution

Because winding up the business requires you to pay debts and creditors, it would be smart to give notice to those individuals and organizations that the LLC is dissolving. Although South Carolina does not require the step, doing so can reduce your liability. Also, you can have greater peace of mind when distributing assets if you know that there are unlikely to be claims on those assets in the future. A best practice is to send written notice directly to known claimants and to publish notice of the dissolution in the appropriate legal newspaper.

Filings with the Secretary of State

South Carolina does not require people to file articles of termination of LLCs, but doing so can provide you protection in a number of scenarios. For example, if someone decides to “hijack” your company identity and do business in your LLC’s name, having articles of termination filed with the Secretary of State can shield you from liability. 

A South Carolina business attorney can help you comply with state requirements and take the additional steps that can protect you as a member of a dissolving LLC. For legal help with your case get in touch with our office today, we offer a free consultation.

Person signing legal documents

What is a UCC filing?

The Uniform Commercial Code (UCC) governs commercial transactions between a debtor and a secured party. It is not federal law. Instead, it is uniform laws adopted at the state level. S. C. Code of Laws Title 36, Article 9 contains the laws adopted in South Carolina. 

A UCC filing is a security instrument used by lenders. It creates a lien on a borrower’s assets. The collateral may be one item or a group of items. Lenders file UCC Financing Statements (UCC-1) to notify other parties that the lender has a security interest in the property described in the UCC filing. 

Many types of assets can secure a UCC filing. According to our South Carolina corporate lawyers, assets that might be pledged as collateral using a UCC filing include:

  • Inventory
  • Real estate fixtures
  • Letters of credit
  • Accounts receivable
  • Household furnishings
  • Office equipment and fixtures
  • Heavy machines and commercial equipment
  • Operating equipment 
  • Investment securities
  • Vehicles
  • Bank or trade accounts
  • Other tangible assets used or owned by a business

A UCC filing does not impact the operations of a business unless it wants to borrow additional funds. Lenders may not want to “get in line” behind another creditor who holds the first position for secured collateral. 

A UCC statement may create a lien on a specific asset. However, a “blanket UCC” creates a security interest in all of a company’s assets. As a result, a blanket UCC statement could make it much more difficult for a company to obtain additional loans and lines of credit until the UCC is canceled, satisfied, or expires. 

UCC statements are valid for five years. However, filing a UCC-3 statement extends the UCC filing for an additional five years. 

Where Are UCC Statements Filed in South Carolina?

UCC filings may be filed against a business or a person. The Secretary of State’s Office handles UCC filings throughout the state. Filings may be submitted online, by mail, or in person. In addition, the public may search the UCC filings through the Secretary of State’s Office. 

Some UCC statements should be filed with the Secretary of State and the county offices. The county of filing would be the county of residence for the debtor or the county where the secured property is located. 

The types of UCC filings that should be filed with both the state and county offices include:

  • Tax liens
  • Real estate fixtures
  • Mineral rights
  • Timber 

Failing to file your UCC statement with the correct government office could make the UCC unenforceable. 

UCC statements are a “first come, first secured” lien. In other words, the lender who files the first UCC statement holds priority for the secured collateral. Therefore, it is essential to submit a correctly completed UCC statement to the required office as soon as possible after the debt is created.

Contact Our South Carolina Business Attorney for More Information 

You do not need a lawyer to prepare and file a UCC statement. However, seeking legal counsel from an experienced South Carolina Business lawyer can ensure the UCC is prepared and filed correctly. Mistakes could make the UCC filing unenforceable, which limits your options for collecting a bad debt. Get in touch with our office today for a free consultation.

Business' paperwork on a table for a company

How to Proceed if my Business is Being Sued for Business Malpractice

Malpractice claims can be devastating for a business. Claims of malpractice allege that a professional failed to execute their duty of care to a client. It calls into question your business ethics, judgment, and qualifications. Business malpractice lawsuits can also create substantial liability for your business. When you receive a lawsuit alleging business malpractice, the first call you should make is to a South Carolina business attorney.

What Should You Do When Your Business Is Sued for Business Malpractice?

Take the complaint and the allegations of business malpractice seriously. You need to act immediately to protect your business and minimize any damage to your company. The steps you should take when being sued for business malpractice include:

Contact Your Business Attorney Immediately

Call your lawyers to let them know you received a lawsuit alleging business malpractice. They will need a copy of the lawsuit to begin reviewing the allegations, investigating the claims, and gathering information to file an answer to the lawsuit before the filing deadline expires for a response.

Notify Your Malpractice Insurance Carrier

Notify your malpractice insurance carrier and forward a copy of the complaint to the insurance company. If you have insurance coverage for the allegations made in the complaint, your insurance provider should hire an attorney to represent your company by defending the lawsuit. If so, you might not need to hire a business attorney. However, if there is a chance that the malpractice insurance does not cover the allegations or you could be personally liable for damages, it is best to consult legal counsel.

Do Not Contact the Plaintiff or Try to Represent Yourself

The plaintiff has a lawyer. You should not try to contact the plaintiff directly. In fact, you should not contact the lawyer for the plaintiff. Let your attorneys handle all communications and responses to the allegations in the complaint. Also, do not try to represent yourself or your company in a business malpractice lawsuit. Regardless of your knowledge or experience, representing your business in a legal matter is never wise.

Gather Evidence and Information 

Begin gathering evidence and information relevant to the allegations in the lawsuit. Make copies of contracts, agreements, and other documents. Create a witness list for your attorney, including a short narrative explaining each witness’s information related to the lawsuit. Preserve all records related to the case, including emails, text messages, and paper documents. If specific employees have information relevant to the case, instruct them to preserve all information and not to discuss the case with anyone.

Refer All Questions About the Case to Your Lawyer

If anyone inquires about the case, refer them to your attorney. Do not even state “not comment.” Just provide them with your lawyer’s name and contact number. You should not discuss the lawsuit with anyone other than your lawyer.

Contact Our South Carolina Business Attorney for More Information

Allegations of business malpractice can be costly and damaging to your company’s reputation. Contact our office to discuss your situation with an experienced South Carolina business attorney.

Businessmen discussing a contracr

Is Non-Performance Permitted? The Impact of Coronavirus on Contracts

Life as we knew it came to a screeching halt in 2020 when the COVID-19 pandemic hit. Even in previous global events like World War I and World War II, the events did not impact the health and economy of every nation worldwide at the same time. People were able to go to work in many cities without disruption, and supply chain issues were generally regional and temporary.

Thanks to COVID, many businesses had to shut their doors for weeks or months on end due to governmental orders. Business owners did not know when they could do their trade again, or what restrictions they would face. You might have been unable to get the essential materials you needed to perform your contracts or have enough workers to get the job done. A South Carolina business attorney can help you navigate the consequences of those events and answer the question, Is non-performance permitted? The impact of coronavirus on Contracts.

How to Determine Your Rights and Duties Under a Contract

There is no automatic result if you or another party could not perform under a contract during the COVID-19 pandemic. General principles of South Carolina will guide the interpretation of each party’s contractual rights and obligations, but you have to read each contract carefully and analyze its terms. You might have defenses if the contract contains certain terms, but have to look to other legal principles under common law if your agreement is silent on those items.

Force Majeure

If both parties to a contract wanted to perform their obligations but could not, through no fault of their own, because an “act of God” interfered, that is a “force majeure” situation. To qualify as a “force majeure,” the event must be:

  • Out of the control of the parties to the contract. Neither of you caused or contributed to the problem. The COVID-19 pandemic was not the fault of business owners in South Carolina.
  • Significant. An event like the COVID-19 pandemic shut down the economy for months, unlike a thunderstorm that might cause a brief interference with normal activity.

You will need to read the contract and see if the document contains a force majeure provision. Usually, a force majeure provision allows temporary delays in performance but does not cancel the contract or the obligations under the contract. The terms of the contract will control.

Impossibility

If the COVID-19 pandemic made it impossible for you to perform your duties under the contract, the doctrine of impossibility might be a successful defense for non-performance. For example, you had a contract to manufacture and supply 10,000 units of plumbing parts a month to a hardware store. 

The government forced you to close your manufacturing facility during the mandated lockdown, making it impossible for you to manufacture the parts required by the contract. No matter how much you wanted to keep working and making the parts, you could not do so. 

Frustration of Purpose

If an event happened that was not anticipated when you entered into the contract, and that occurrence substantially frustrated you from performing your duties under the contract, you might argue the frustration of purpose defense for your non-performance. An example of this defense is if you experienced repeated supply chain problems in getting the materials you needed to perform your contractual duties or could not maintain a sufficient workforce to get the job done due to the pandemic.

The economic fallout from the COVID-19 pandemic has not yet ended, and the business community is struggling to resolve the consequences of contractual non-performance. A South Carolina business attorney can help you address these issues. For legal help contact our office today, we offer a free consultation.

Business client and lawyer discussing documents

Resolving LLC Member Disputes in South Carolina

Like any other type of business structure, a limited liability company (LLC) can face internal disputes among its members. It is important to know your options when there is conflict within an LLC. The long-term health and viability of the business depend on being able to resolve disagreements.

A South Carolina business attorney can provide guidance when resolving LLC member disputes in South Carolina and help you take steps to avoid disputes in the future. 

Resolving LLC Member Disputes

Often, there is no actual dispute; rather, there is a misunderstanding. One member might have misinterpreted what another member did or believed rumors without verifying the facts. The first step in resolving disputes among members of an LLC is to sit down with all the involved parties and identify the issue in dispute. This simple stuff step could save everyone a great deal of grief and prevent the situation from escalating.

Another common scenario is that an LLC member did something out of ignorance rather than malice. Very few people actually read the contracts they sign. An LLC member might not realize that the LLC operating agreement prohibits certain conduct. Explaining the rights and duties of LLC members might help the offending member to realize what they did was wrong, and give them an opportunity to correct their actions.

If those two approaches are not effective, you might try to resolve the conflict through alternative dispute resolution, like mediation or arbitration. You will want to check the LLC operating agreement for the rules about dispute resolution. One of the worst things to do is immediately file a lawsuit. Litigation is adversarial and confrontational, and will likely damage if not destroy business relationships. 

Sources of Conflict Among Members of an LLC

If the LLC has a managing member, the other members might suspect that the managing member overstepped their authority, improperly appropriated assets of the company, received an unfair amount of compensation, or breached their fiduciary duty in some other manner. The same accusations could be leveled by one member against another member. 

Also, perceived or actual conflicts of interest can lead to disputes between members of an LLC. For example, a member might enter into a contract for the LLC to purchase materials from another company without disclosing that member’s financial interest in that supply company.

Preventing Future LLC Member Conflicts

Make sure that the LLC operating agreement covers all essential issues, so that all members know their rights and obligations. An LLC member should not have to guess about whether conduct is allowed or prohibited.

Hold a meeting of the LLC members to discuss any gaps you discovered in the operating agreement. Get their input on the terms they would like to have in the contract. With the permission of the LLC, draft an amended operating agreement and have all members sign the document. Hold a meeting with all members to discuss the terms of the operating agreement and make sure they understand what is expected of them. 

If your LLC experiences conflicts among its members, you could seek the guidance of a South Carolina business attorney. Get in touch with our office today for a consultation.

A meeting among business associates

5 Myths That Cause Businesses to Fail

You formed your business to succeed. Your goal is to grow your company and expand your business to increase revenue. However, listening to unfounded business myths could cause your business to fail. Instead, work with a South Carolina business lawyer to ensure your company is on track to meet your goals for growth and success.

Five Business Myths That Could Keep Your Business from Succeeding

A business owner may receive a lot of advice when starting a new company. You may receive advice about how to grow or expand your company. Some of that advice is grounded in harmful myths that could hurt your business. Five common business myths to watch out for include:

  1. Being a Business Owner Gives Me More Time for Myself

Starting a business is hard work. You may find that you work harder for yourself than you worked for any employer. Even when you are not working, you are likely thinking about work. Be prepared to invest a lot of your time getting your business off the ground. However, do not expect your hours to decrease in the first few years. Choose something you are passionate about so that you do not burn out as you build your business. 

  1. Marketing is Not Worth the Cost

Marketing is a necessity. Investing in an online marketing strategy is crucial for new businesses. More consumers locate companies online. Furthermore, consumers search for companies that offer services virtually. Your company cannot effectively compete with other companies if you rely solely on networking and word-of-mouth to attract new customers. 

  1. Entrepreneurs Should Always Trust Their Instincts

There is nothing wrong with following your instincts. However, successful business owners seek professional advice about matters they do not fully understand how to navigate. Successful business owners understand they need guidance in matters related to taxes, advertising, bookkeeping, regulations, contracts, and employee relations. Failing to seek advice from professionals can result in massive headaches for your company. In some cases, it could result in costly and time-consuming “fixes.” 

  1. You Can Get Contracts and Document Free Online

Yes, you can find business documents, contracts, and other forms online free of charge. However, many of these “free” business forms are created by non-lawyers. Even the business forms created by lawyers may not comply with South Carolina laws. It is best to have a business lawyer in South Carolina draft your company’s contracts and business forms. Your attorney ensures that your business forms comply with all state laws and contain language protecting your company from liability. 

  1. You Do Not Need a Business Lawyer to Incorporate Your Business 

Again, you can find the forms to incorporate your company online. However, deciding on the business structure for your company is one of the most important steps you take when you create a new business. Your business structure impacts taxes, ownership, revenues, and liability. A business lawyer advises you of the pros and cons of each business structure. Based on your needs and goals, an attorney recommends the best structure for your company and handles all matters to establish your legal business entity. 

Contact Our South Carolina Business Lawyer for More Information

Having the correct information and sound legal advice is crucial to operate a successful business. If you have questions regarding business matters, contact our South Carolina business lawyer. We handle all matters related to your business, including business formation, litigation, and contracts.

Business partners speaking

Laws that South Carolina Small Business Owners Should Know

If you plan to do business in South Carolina, there are many statutes that regulate how you can set up your business and how you get to run your business. We do not generally think of our state as an overreaching government, but still, there are quite a few laws that South Carolina small business owners should know.

It can be quite challenging to keep up with the new regulations that come out every year on top of all the existing rules. A South Carolina business attorney can help you form your business structure and provide guidance on how you can stay in compliance with relevant regulations.

Antitrust Laws

When you go into business, your goal is likely to become as successful as possible. Federal statutes and South Carolina’s antitrust laws, however, try to play some limits on business success. 

If you do too well in the eyes of the government, antitrust laws might try to prevent you from getting what the government sees as an unfair advantage in the marketplace. What you might see as being the leader in your field, our state might view as a lack of competition between businesses.

Forming a Business in South Carolina

South Carolina law allows for a wide variety of business structures. You could have a sole proprietorship, a partnership, a corporation, or a limited liability corporation (LLC). Within some of these categories, there are multiple options. You could set up a C corporation, an S corporation, a general partnership, a limited liability partnership, or other entities.

Some business entities require you to name the company and register the name under which you will be doing business. Depending on your business structure, you might need to: 

  • Select and identify a registered agent for service of process
  • File articles of incorporation 
  • Register to do business in the state of South Carolina if you are a foreign LLC.

Our state usually does not require operating agreements, but creating one can be a smart business practice. Depending on whether you sell goods and collect sales tax, you might have to register with the South Carolina Department of revenue. Also, you might need state and local business licenses.

Deceptive Trade Practices

South Carolina tries to protect consumers from what the state considers to be deceptive or unfair practices used to sell goods or services. Building and running a company can be a cutthroat business. Companies in South Carolina need to balance competitiveness with honest trade practices. If a business steps over the line, our state’s deceptive trade practices laws could impose punishments. 

Statute of Limitations

Our state limits the amount of time people have to file lawsuits against others. Different types of lawsuits have different lengths of deadlines, called statutes of limitations. You will want to be familiar with these deadlines because they can be both a sword and shield.

If a person or another company files a lawsuit against you and it is past the statute of limitations, you could file a motion to dismiss the lawsuit. If you want to take legal action against someone, you will need to file your case before the deadline expires. 

A South Carolina business attorney can advise you on South Carolina laws that apply to small businesses. Get in touch with our office today for legal assistance, we offer a free consultation.