Great ideas birth corporations, increase revenues, and produce jobs, but paperwork keeps corporations legally compliant. Without completing the proper paperwork, your hard work in the business world could be for naught. There are many documents to be filed to start a corporation in South Carolina, including the Initial Annual Report of Corporations.
What is an Initial Annual Report of Corporations?
A South Carolina Initial Annual Report of Corporations gives the state government specific information about what your business is, how to contact your business, who runs your business, and how you plan to fund your business. Whether foreign or domestic, the state requires most corporations to file an Initial Annual Report of Corporations, but there are exceptions. The following businesses are exempt:
- Nonprofit corporations organized under certain South Carolina laws and exempt from income taxes
- Volunteer fire department and rescue squads
- Cooperatives organized under certain South Carolina laws
- Banks, building loan associations, or credit unions doing strictly mutual business
- Insurance companies or associations including fraternal, beneficial, or mutual protection insurance companies
- Foreign corporations whose entire income is excluded from gross income for federal income tax purposes due to U.S. treaty obligations
- Homeowners associations within the meaning of certain federal tax law provisions
- Certain certified community development entities established to distribute allocations received as part of the New Market Tax Credit Program
If you’re required to file an Initial Annual Report of Corporations and you fail to do so, your corporation could be subject to penalties that increase with the length of noncompliance. Failure to pay penalties could result in involuntary administrative dissolution of your corporation. LLCs are not required to file an initial report.
South Carolina Initial Annual Report of Corporations Requirements
An Initial Annual Report of Corporations is a necessary part of establishing your business, and you need to act quickly to fulfill the necessary requirements.
When to File an Initial Annual Report of Corporations
The state requires your corporation to file its Initial Annual Report of Corporations at the same time it pays its minimum licensing fee and files its initial Articles of Incorporation, or for out-of-state formed corporations, an Application for Certificate of Authority. You file your Initial Annual Report of Corporations with the South Carolina Secretary of State. For corporations that filed an Application for Certificate of Authority, the law requires you to file your Initial Annual Report of Corporations within 60 days of initially doing business or spending a portion of your capital in South Carolina.
How to File an Initial Annual Report of Corporations
You can file your Initial Annual Report of Corporations at sos.sc.gov or by mail. When filing online, you can pay by credit card or debit card. If you submit your report by mail, you must include a check.
What information is required for the Initial Annual Report of Corporations?
Before you file your Initial Annual Report of Corporations, it’s helpful to have many details of your corporation figured out. On the report, the state asks you to provide:
- The name of your corporation
- The state or county of incorporation
- The address of the registered office in South Carolina
- The name of the registered agent in South Carolina
- The address of your corporation’s principal office
- The names and business addresses of your corporation’s directors and principal officers
- A description of what the business does
- The total number of authorized stock shares
- The total number of issued and outstanding stock shares
If your authorized, issued, or outstanding stock shares have multiple classes or series, the law requires you to itemize them in your report. This report gives information to the Secretary of State about your business, and it’s also open to public access.
ZenBusiness: Formation is just the beginning
The amount of separate forms you have to complete and timely file to establish and maintain your business can make anyone dizzy. And missing the deadline for your Initial Annual Report of Corporations can cost you a lot of money in fines, or it could cost you your business. One of the ways we can help prevent headaches is through our many compliance services such as our annual report service. Our service helps you timely file annual reports so you can avoid costly penalties and focus your energy on the big ideas that make your business flourish.
Filing Your South Carolina Initial Annual Report of Corporations FAQs
- Is an Initial Annual Report of Corporations the same as an Annual Report in South Carolina?
An Annual Report requires the same information as the Initial Annual Report of Corporations. An Annual Report also needs to provide any updates to the required information (e.g., change of registered agent or principal office). South Carolina requires you to file Annual Reports after incorporation to keep the state informed about your business.
- Do I need a lawyer to file an Initial Annual Report of Corporations in South Carolina?
You don’t need an attorney to file an Initial Annual Report of Corporations. However, you do need a South Carolina-licensed attorney to certify in your Articles of Incorporation that you complied with the state’s incorporation requirements. South Carolina is the only state that requires this.
- How much does it cost to file an Initial Annual Report of Corporations in South Carolina?
For the latest information and up to date fee schedules, check the Secretary of State website.