C Corporations and S Corporations in South Carolina

C CORP AND S CORP FORMATIONS AND OTHER BUSINESS COUNSEL

When starting a business, you must select your entity. If you choose to incorporate (the legal process to form a corporate entity or company), you can form either a C Corporation or an S Corporation. Each has its own unique legal and tax aspects that must be analyzed to ensure particular requirements are met. Our business lawyers in South Carolina at Harvey and Battey can advise you on the best choice and form the entity for you.

FORMING A CORPORATION IN SOUTH CAROLINA

To form a corporation in South Carolina, you must file an Initial Report and Articles of Incorporation. This process cannot be completed without a business lawyer in South Carolina as their signature is required on the Articles of Incorporation. Once you have submitted your Articles of Incorporation, you can expect a turnaround time of up to 15 business days.

Your Articles of Incorporation must have the following details included:

• Business Name that includes “Corporation,” “Incorporated,” “Company,” “Limited,” or the abbreviation of one of these words.

• South Carolina Street Address, which will become a part of the permanent public record.

• Registered Agent, which can be a South Carolina resident or a business. Whoever is chosen as the agent will need to sign the Articles of Incorporation.

• Authorized Shares, including how many shares you’re creating and, if you have more than one class of shares, the rights and limitations of each class will need to be listed.

• Delayed Date of up to 90 days in the future unless you intend to start your business right away.
• South Carolina Incorporator, the person you authorize to submit your Articles of Incorporation. Your business formation lawyer can act as your Incorporator.

C CORP VS S CORP

How do you decide to incorporate as a C Corp vs S Corp? A C Corporation is the default corporation under the IRS rules. An S Corporation has elected a special tax status with the IRS, which provides some tax advantages. Your business formation lawyer can help you decide which is the best choice for your business, as well as form the entity, but one is not necessarily “better” than the other. 

Whether to incorporate as a C Corp vs S Corp depends on the nature, size, and goals of your business as the labels simply describe how your company is taxed and which rules your business must follow to be IRS compliant. Businesses tend to choose C Corp formation when the company is larger and S Corp formation when they are smaller or sole proprietorships, but this is not always the case. Your lawyer can help determine which formation is best for your company, especially if you are a growing small- and mid-sized business.

OUR BUSINESS LAW TEAM AT HARVEY AND BATTEY

The experienced team of business lawyers in South Carolina at Harvey and Battey include William B. Harvey, III, Thomas A. Holloway, J. Samuel Scoville, Eugene Parrs, Kevin Dukes, and Austin Blake. Our team has over 100 years experience helping South Carolina businesses incorporate. Schedule your free consultation with one of our trusted attorneys to discuss incorporating your business.

COMMON QUESTIONS RELATED TO C CORPORATIONS AND S CORPORATIONS IN SOUTH CAROLINA