Business Formation

There are many things to consider when forming a business, from financial planning to market research. One of the most important things to consider is the legal structure of the business. The legal structure you choose will determine issues regarding liability, taxes, how the business operates and who will make important decisions for the business.

Some examples of legal structures include partnerships, limited liability companies, corporations, non-profit corporations, and limited partnerships. Each legal structure is governed by its own section of the South Carolina Code of Laws. Therefore, each legal structure has its own rules for operation and formation. It is important to understand these differences before choosing the legal structure that’s right for your business.

Taxes

The section of laws governing your chosen legal structure will not be able to answer all of your tax questions. The South Carolina Code of Laws and the Internal Revenue Code contain specific sections applicable to your chosen business structure. It is important to consult with a Certified Public Accountant who understands the implications of both state and federal law with respect to your business entity. The short-term costs of consulting with an accountant from the beginning are far out-weighed by the long-term costs of not consulting one.