Am I legally doing business in South Carolina?

By Attorney Edward Jesson

Being located in Charlotte, North Carolina, many of our clients end up doing business in both North and South Carolina. This often leads to the question, do I need to register my business with the South Carolina Secretary of State? 

The answer is dependent on the facts of each situation. South Carolina law states that an out of state business must register to do business in South Carolina if that businesses’ activities in South Carolina are substantial, continuous, and regular. For example, in instances where a business has a physical location in South Carolina, has employees who work in South Carolina, or performs ongoing business in South Carolina, the answer is most likely “yes,” you do need to register your business with the South Carolina Secretary of State. On the other hand, if you are just doing a one-off business transaction in South Carolina, shipping items to South Carolina, or using independent contractors that are located in South Carolina, your North Carolina business likely does not need to register with the South Carolina Secretary of State.

If your business does need to register in South Carolina, you must file paperwork with the South Carolina Secretary of State in order to obtain your “Certificate of Authority.” You must also appoint a registered agent who is physically located in South Carolina who can accept official documents from the state (and service of process if you were to get sued in South Carolina).

Various municipalities in South Carolina also require your business to obtain a business license—the process and cost of which varies greatly from city to city and town to town.

If you are thinking about transacting business in South Carolina with your North Carolina business (or vice versa), the attorneys at Jesson & Rains can assist in making sure you are doing so legally and complying with various different rules that apply when you are doing business across state lines.