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South Carolina has become a popular place for budding entrepreneurs. If you’re interested in starting a South Carolina business, use our step-by-step guide below.
You can find templates available online, but most include a company overview to explain your specific type of business, a list of SMART goals, and an analysis of the competition.
You’ll also want to explain the company’s target customers, how you plan to market to them, and how the company will be organized and run.
Don’t be afraid to address potential problems and outline what you’ll do about them. The more detailed the plan, the easier it’ll be to attract funding because potential lenders will know you’re prepared.
One of the first decisions a South Carolina entrepreneur must consider is how the business will be structured. There are several different business entity types, but sole proprietorship, general partnership, limited liability company (LLC), and corporation are among the most popular choices for startups.
A sole proprietorship is the simplest business entity to set up. All business income and losses are reported on your personal tax return, but you won’t have the same liability protections as an LLC or corporation. A general partnership operates the same way, but with multiple owners dividing the profits.
On the flip side, entities such as corporations and LLCs provide legal separation between your business and your personal property, protecting your own assets if the business is sued. To form one, you’ll need to file with the South Carolina Secretary of State.
There will be upfront fees, but talk with a trusted business, financial, or legal advisor about which business entity is the right choice for your startup.
It’s important to calculate your business costs before you start a business in South Carolina. Consider one-time charges and ongoing expenses.
Part of your startup costs may include the cost to register your business and other state fees associated with business licenses or permits. Research the licenses and permits needed for a business like yours to get an idea of what you may need and the costs associated with each.
When it comes to ongoing expenses, your company may have a lease for a commercial business location. Research what the costs per square foot are in the city where you plan to locate your office.
If your business grows and requires additional you to hire employees, plan to include estimates for payroll, healthcare costs, unemployment insurance, and South Carolina’s workers’ compensation costs.
Also, keep in mind how you’ll market the business, such as your company website, social network posting, advertising (such as online, print, and broadcast), and industry events. Investigate what the costs of each marketing method will be.
While accessing funds to cover business costs may take some time, it’s an essential step in the startup process, so include it in your detailed business plan.
Do you have a business name in mind? In South Carolina, as in many states, no two companies can have the same name. So conduct a business name search on the South Carolina Secretary of State website. We walk you through the search process on our South Carolina business entity search page.
South Carolina also has specific rules about naming companies, so you’ll want to research the naming regulations before you settle on a name.
The state also gives business owners the ability to reserve a name for 120 days before filing the paperwork to start an entity like an LLC or corporation. This isn’t required, but it can keep another business from taking your desired name before you can get your paperwork together.
If you’d rather not do the paperwork for this process yourself, we have a business name reservation service that can handle it for you.
Once you’ve decided on your new business’s name, you can register a domain name for your business website and start creating social media profiles on Facebook, Twitter, LinkedIn, and other platforms. We have a tool to help you do a preliminary domain name search, and our domain name registration service can help you secure the online name that will best serve your business.
Once you’ve chosen your business structure, you can apply for a federal employer identification number (EIN) with the IRS. Having this tax ID number is often required even if you don’t have employees or if you want to open a business bank account.
You can open an account yourself or have a partner do it by using a special document called a banking resolution.
Dedicated business bank accounts will keep the company’s finances separate from your personal funds. This not only helps you at tax time, but it can help protect your limited liability status if you have an entity like an LLC or corporation.
Next, apply for any permits or licenses your business is required to have. Permits and business licenses vary by industry, and they can be needed at the federal, state, and local levels.
There’s no central authority to tell you every license and permit your business requires, so you’ll have to do some research or have someone like us do the research for you with a business license report.
It’s one thing to open your doors, but what will get customers to come through them? Create a marketing plan and think about advertising online via Google or Facebook, in print publications such as newspapers, on TV and radio stations, and/or other venues (for example, billboards).
Also, optimize your company’s profile on Google My Business, so people searching for your services are more likely to find you. If social media is part of your marketing, regularly post content, and engage with people on networks like Twitter, Facebook, or Instagram.
Print assets remain powerful, too. Business cards, brochures, and postcards can get your brand at the top of someone’s attention.
Partnering with a South Carolina marketing firm can smooth your path to success.
Business-friendly South Carolina offers opportunities for many growing and trending businesses, such as:
South Carolina has a host of tax incentives to encourage entrepreneurship. Among them are a favorable corporate income tax structure and a lack of inventory tax, wholesale tax, state property tax, and local income tax.
You’ll also find a variety of workforce training programs like the readySC program, which provides recruiting and training assistance to companies that are looking to move to South Carolina, and the Apprenticeship Carolina program, which helps employers create their own registered apprenticeship programs.
There are plenty of success opportunities for South Carolina businesses. The state boasts a business-friendly environment with a pro-business tax structure and several incentives to help companies thrive. Although it takes multiple steps to launch your own business in South Carolina, our services can ease the workload. We can help you form, run and grow your South Carolina business.
With a mixture of rural areas and close-knit small towns and cities, South Carolina has metropolitan areas with some of the most successful entrepreneurs, including Seneca, Greenville, Myrtle Beach, Greer, and Beaufort.
According to the US Census Bureau, per capita income from 2015 to 2019 was approximately $29,400.
The agriculture, tourism, automotive, manufacturing, and aerospace industries are all important to South Carolina’s economy.