Bill > S0396

This bill makes two primary changes to South Carolina law. First, it modifies the annual license fee on corporations by allowing companies whose headquarters and principal place of business are in South Carolina to exclude the first fifty million dollars of equity contributions from certain qualifying investors from their paid-in or capital surplus. Qualifying investors include venture capital funds, angel or accredited investors, and private investment firms meeting specific criteria. To claim this exclusion, corporations must submit an annual report to the department detailing each qualifying entity's contribution and maintain detailed records. Second, the bill modifies rules for limited liability companies (LLCs) by removing the requirement that members refrain from competing with the company when a member is also a member of another LLC and no enforceable non-compete provision exists in the operating agreement. The bill will take effect upon the Governor's approval and will first apply to the tax year beginning after July 1, 2025, potentially providing financial relief for qualifying South Carolina corporations and offering more flexibility for LLC members.

Budget and Finance

https://www.scstatehouse.gov/billsearch.php?billnumbers=0396&session=126&summary=B