Starting a business in North and South Carolina is exciting but also complicated. It involves many processes and procedures and requires understanding some legal terms and practices.
In this article, Steltzner Law Firm, an experienced law firm in Rock Hill, SC, explains the processes of establishing a new business in North and South Carolina and the requirements involved.
Selecting the Right Type of Business
The common types of business formation you can choose from include;
1. Sole Proprietorship
This type of business structure is ideal for a single business owner. It allows simplicity and flexibility and involves minimum requirements and processes. However, in a sole proprietorship, the business owner enjoys all the benefits and bears all the losses.
2. Partnership
This form of business is suitable for two or more individuals who have agreed to set up and manage a business together. It requires a partnership agreement outlining each partner’s rights and responsibilities.
3. Limited Liability Corporations (LLC)
This choice of business operation is more popular among small businesses. It requires submitting Articles of Organization and getting an EIN from the IRS.
4. Corporation
This is a more complex business structure. It offers limited liability protection but requires more stringent compliance with laws and regulations.
Acquiring Licenses and Permits
Depending on the types of business you want to establish, you might need to obtain specific licenses and permits from either the state or federal government. Common permits and licenses include;
1. Business License
This license is required for all businesses. It is a general operating license, usually issued at the state and federal levels.
2. Professional License
These are licenses set up to regulate certain industries. They are required for certain businesses, such as law firms, medical practitioners, architects, and engineers.
3. Sales Tax Permit
This is more important for retail and wholesale businesses. It is a permit that allows businesses to collect and remit state sales tax.
4. Health Department Permit
This permit is required for businesses operating in the health industry, including food service establishments and other businesses related to public health.
About Steltzner Law Firm
Setting up a business establishment may be more complicated than you imagined, so it is crucial that you work with experienced attorneys who can educate and direct you to make choices that will benefit you and your business.
Steltzner Law Firm is a reputable law firm in Rock Hill, SC, with over three decades of combined experience. It has a team of licensed attorneys ready to answer all your questions and guide you through your business formation.
Contact Steltzner Law Firm at 803-329-3777 or visit their website to make more inquiries.
