Types Of Business Entities
In South Carolina, there are many different types of business entities permitted by State law.
No particular documentation or agreement
If you just start a venture and you expect to or actually do make a profit, you have just started a business. If you are the sole owner, the business is a sole proprietorship; if there is more than one owner, the business is a partnership. The other types of companies come into existence only after they are properly registered with the State of South Carolina.
Partnership
There are three different types of partnerships in South Carolina, and each one has different requirements and has different legal effects. The first is a General Partnership, which is the most common. Another type is a Limited Partnership, in which some of the partners do not have an active role in the business operations. The third type is a Registered Limited Liability Partnership, which is in some ways a blend of the General Partnership and the Limited Partnership.
Limited Liability Company (LLC)
An LLC is a company which has some of the benefits and some of the disadvantages of corporations and of partnerships. Although easy to form, it is very important that you understand all of the legal subtleties of an LLC to protect the owners.
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Corporations
There are four different types of corporations which can be created in South Carolina. These are a Regular Corporation, a Professional Corporation, a Non-Profit Corporation, and a Statutory Close Corporation.
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Reasons for confusion
In addition to the different types of businesses mentioned here, there are additional types, such as a business trust. Because of the many different characteristics and requirements of the different business entities, it is extremely important that you discuss this matter with a knowledgeable attorney before you make any decisions. Of course, please feel free to contact us to assist you in your business endeavors.
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