Not Incorporated? Consider Forming a Limited Liaility Company
This entry was posted on 6/29/2008 8:40 PM and is filed under Government Publication,Liability and Risk Management,South Carolina Construction Law.
S.C. law permits the creation of a Limited Liability Company (LLC). LLCs allow member(s) to be taxed like a sole proprietorship or partnership. LLCs provide limited liability as corporations do - members or managers of a LLC are generally not liable for the obligations of the LLC.
LLCs allow for flexibility in governance. A LLC can be operated like a corporation or it can be managed like a partnership.
In order to form (organize) a LLC, simply file Articles of Organization with the S.C. Secretary of State. The Articles of Organization must provide:
- a name (not in use and that complies with the requirements posted on the Secretary of State's website);
- address of the initial designated office;
- name and street address of the initial agent for service of process;
- name and address of each organizer;
- whether the LLC is to be a term company (to exist for a specified period of time) an if so designate the term;
- whether to member-managed (owner managed LLC) or manager-managed (LLC not managed by the owners but by specified managers); and
- whether any of the members will be responsible for the LLC's debts and obligations
S.C. law no longer requires annual reports to the S.C. Secretary of State making LLCs an attractive option over corporations.
This site and any information contained herein is intended for informational purposes only and should not be construed as legal advice. Seek a competent attorney for advice on any legal matter.
