Legal Question in Business Law in South Carolina

LLC Question

Hello,

I set up an LLC in the state of SC this year, but with the poor economy I will not be able to start my business as I hoped before the end of the tax year. I want to start up a website to sell coffee beans, cocoas, and teas, all of which will never come into my home and will be directly shipped from the vendor to the customer. I live in NY but want to run my online business from my LLC in South Carolina under my PMB address through a UPS store. Are there any legal complications with doing this? Please let me know if you need any more information for answering this question.

Thank You,

Brittney


Asked on 10/16/08, 8:09 pm

1 Answer from Attorneys
Steve Brodsky Esq. CheapNewYorkLLC.com

Re: LLC Question

Hi Brittney,

There should not be any complications, but be aware that since you are running your business from your home in NY, you are technically transacting business in NY. This means that your LLC will have to apply for authority in NY. This entails several steps and over $200 in extra filing fees.

Moreover, you will need to complete the NY LLC legal publishing requirement. Based on your zip code, I assume you are located in Onondaga County. If that's the case, the publishing will cost about $525.

You have two money-saving alternatives:

1. Form your LLC in NY and forget about SC. Unless there is something I am not aware of, you will not gain any benefit by registering in SC. You'll save whatever fees are required in SC.

2. Form an S Corp instead of an LLC. This will give you the same tax benefits and same protection from personal liability. However, legal publishing is not required for Corps in NY, so you'll save all that extra money. The only drawback is that corporations require more ongoing paperwork such as maintaining minutes, bylaws, annual shareholders meetings, etc. LLCs do not require many of these things.

Hope this helps.

Read more
Answered on 10/17/08, 9:33 am


Related Questions & Answers

More Business Law questions and answers in South Carolina