The first step in filling out the South Carolina Operating Agreement is to pick a business name.

There are a couple of requirements when choosing a South Carolina LLC name.

1. The name of your LLC must not be too similar to the name of another business entity already registered with the state of South Carolina. You can do a South Carolina LLC name search by entering a name in the field.

2. The name of the LLC must include one of the following entity identifiers at the end of the business name:
– Limited Liability Company
– Limited Company
– LLC
– L.L.C.
– LC
– L.C.
– Ltd Co
– Ltd. Co.
– LTD Liability Co

Enter the LLC name, including the identifier, to search. If there are no exact names that come up, click on “Add New Entity” to continue.

On the next screen, select the type of entity. You can choose from Domestic Entity or Foreign Entity.

A Domestic Entity will be an entity that is based in South Carolina and is what most people will select when starting a new LLC. A Foreign LLC is one that was formed in another state and now wants to physically operate in South Carolina.

Next, select from the list of entities from the dropdown. In this example, I’m going over how to form a Limited Liability Company.

Then select the “Start Filing” button for the Articles of Organization form.

In step 3, enter the contact information for the person filling out the Articles of Organization. Be sure to use an email address that is regularly checked in case there are any issues with the filing.

Next, the name that was entered earlier will be filled in the New Entity Name field. If there is an error, a warning message will show up.

One requirement to have an LLC in South Carolina is to appoint a South Carolina Agent for service of process (also referred to as a registered agent). The agent for service of process is a party that is located in the state of South Carolina that will receive important notices and service of process (which means to accept papers that start a lawsuit) on behalf of the LLC. The address of the registered office must be a physical street address, as a PO Box isn’t allowed.

Provided the LLC member lives in the state of South Carolina and is generally available during business hours, they may act as the agent for service of process. Additionally, any adult resident of the state, attorney or accountant in the state, or a registered agent service can also act as the agent for service of process.

The address of the Initial Designated Office may be, but is not required to be, the actual place of the business. It can also be the main location where the business records are kept.

A physical address in the state of South Carolina must be used for the Initial Designated Office, as P.O. Boxes are not acceptable.

The next step is optional and indicates whether the LLC is Manager-Managed or Member-Managed.

A Member-Managed LLC means the Members are involved with the day-to-day operations of the business. Many LLCs are operated and run by the owner, in which case would be Member-Managed.

A Manager-Managed LLC refers to a Limited Liability Company that hires a manager to run the business, similar to hiring a CEO of a corporation.

If the LLC will be Manager-Managed, check the box and enter the Manager’s name and address.

Step 8 is also optional, but if any of the LLC Members should be liable for the debts and contracts of the LLC, check the box and enter the Member information.

Another optional section, the term of the LLC refers to the length of time (or duration) the LLC is to exist.

Most LLCs will be perpetual as most people don’t have a set end date in mind when to close the business. However, if there is a predetermined date, the LLC will close, check the box, and enter the date. This is more common for investment-related entities.

An option to choose an effective start day is available for up to 90 days in the future. Some will delay the effective date (starting date) of the LLC if they aren’t ready to start the business but want the filing out of the way or if they are close to the end of a calendar year.

By default, the effective date is the day the Secretary of State files the formation paperwork. Otherwise, enter a different start date.

The Organizer is someone who is involved with the LLC formation.  The Organizer may or may not be a member, such as a mentor, attorney, or accountant, but any of the initial member(s) could be listed as an organizer.

At least one organizer is required to be listed and will sign they are present when filing the document.

Before filing, there is a form that you can submit with the Articles of Organization, called the Initial Report of Corporations.

Form CL-1 only needs to be filed if your LLC elects to be taxed as a C corp or S corp. If you aren’t sure yet, you have up to 60 days after the LLC is formed to submit to the South Carolina Department of Revenue (SCDOR). be due.

On the next screen, you can elect to obtain some additional documents.

One is the Certificate of Existence. This document proves the entity is in good standing with the state. This document may be requested by a bank or vendor to check on the status of the entity, however, it often isn’t worth getting when first registering, unless you are specifically being asked for it. Most requestors will require the document to be less than 60 – 90 days old. When the entity is newly created, a copy of the Articles of Organization is often sufficient.

While a copy will be sent after the LLC is formed, an official Articles of Organization form can be requested. This can be especially important when registering to sell to the government.

Last, you will pay and file the Articles of Organization with the Secretary of State.