If you are thinking of launching a business in South Carolina, you need to register your business with the Secretary of State to make it a legal entity and apply for the tax ID (EIN) number.
Starting a business can be overwhelming, especially when you are new to the business world, as it has lots of paperwork. Here you can find a full guide on how to register your business and obtain a tax ID number.
Obtain a Tax ID (EIN) Number and Register Your Business in South Carolina
In the US, when you initiate a business structure, there is a lot of paperwork involved to make it legal and run it smoothly. The tax ID number makes the business operations run smoothly and ensures you meet your tax obligations.
One of the top five business-friendly states in the US is South Carolina. So, if you are launching a business in South Carolina, remember you have to register as a legal entity with the Secretary of State to meet the state tax purposes and obtain the federal tax ID number.
The Secretary of State’s website allows you to register a business in South Carolina, but before you do so, you should know the following points:
- You should choose the business structure that aligns with your business goals. You should check the tax liabilities of the business structure as per the South Carolina rules and laws, and then decide which structure will work for you.
- You should give your business a name that is unique and meets the application rules.
- You should know that the sole proprietorship and general partnership business structures do not require registration with the SC SOS. However, if you have a logo or trade name to trademark, you will need to apply for a trademark.
Steps to register your business in South Carolina
To register your company in South Carolina, go to the Secretary of State’s official website and follow the instructions below:
- Visit the SC SOS official website for business registrations.
- After reading the page’s instructions and advice, click “Registering with SOS.”
- Afterwards, you should enter your business details and file the articles based on the business structure.
- Next, enter your information and upload the necessary document to the SCSOS.
- Once all the entries are filled, submit the online application, and once it is validated, you will receive the Certificate of Existence within a day.
What is the fastest way to obtain the tax ID (EIN) number?
Now that you have registered your business as a legal entity with the South Carolina Secretary of State, you can apply for the federal Employer Identification Number with the IRS. The fastest way to obtain an EIN is to apply through the IRS online tool.
If you need to complete your EIN application, you should first gather the following information:
- Business entity structure
- The person who controls the business assets and the organization in the US will need their ITIN (Individual Tax Identification Number) or Social Security Number.
- If you have assigned someone to obtain the tax identity number, the applying party will be a third-party designee and needs to provide the signed authorization to the third-party.
After you gather all the information, you can follow the steps below to complete your EIN application:
- Go to the IRS online tool website and next click the “Continue Application” option.
- Now, on the dashboard, select your business entity structure and then add your business details, from name to location, etc.
- Then, enter the responsible party’s SSN or ITIN, whichever is available.
- Verify all the information now, then submit the online EIN application.
Once you have submitted the EIN application online on the EIN Assistant tool, you can expect your EIN (unique 9-digit number) within 24 hours.
Important Note:
Some corporations of business entity type would need to report the beneficial owners’ information to the US Treasury Department Financial Crimes Enforcement Network, so when you apply, do check whether you are required to file or not.
What are the advantages of registering your company and acquiring a tax ID (EIN) number?
When you register your business with the Secretary of State and obtain the tax ID (EIN), your business will benefit in the following ways:
- You would know your business credits or deductions that you can apply.
- You would know what you need to report to the state and federal tax authorities as per your business structure.
- You can hire employees and pay or withhold taxes, and administer retirement plans or trusts, or estates.
- You can operate your business smoothly and pay excise or other taxes.
- You may easily complete your tax obligations and modify the ownership and structure of your company.
If you are launching your business in South Carolina, remember that you first have to register your business, obtain an EIN, and then, if your business requires it, you can apply for a permit or business license.
