The bill S. 396 proposes amendments to the South Carolina Code of Laws regarding license taxes on corporations and standards of conduct for LLC members. Specifically, it amends Section 12-20-50 to allow corporations with their headquarters and principal place of business in South Carolina to exclude the first fifty million dollars of equity contributions from qualifying entities from their paid-in or capital surplus when calculating the annual license fee. To qualify for this exclusion, corporations must obtain a certificate from the South Carolina Research Authority and provide detailed annual reports to the department regarding the equity contributions.

Additionally, the bill amends Section 33-44-409 to clarify the standards of conduct for LLC members, specifically stating that the requirement to refrain from competing with the company does not apply if a member is also part of another LLC without an enforceable noncompete provision in its operating agreement. The act will take effect upon approval by the Governor and will first apply to the tax year beginning after July 1, 2025.

Statutes affected:
02/26/2025: 12-20-50, 33-44-409
Latest Version: 12-20-50, 33-44-409