Current Status Bill Number:3859 Ratification Number:173 Act Number:91 Type of Legislation:General Bill GB Introducing Body:House Introduced Date:19970409 Primary Sponsor:Robinson All Sponsors:Robinson, Altman, Campsen, McMaster, Harrison, Riser and Delleney Drafted Document Number:bbm\9100mm.97 Date Bill Passed both Bodies:19970527 Governor's Action:S Date of Governor's Action:19970610 Subject:Income tax, single-member limited liability companies and grantor trusts exempt from; Businesses and Corporations
Body Date Action Description Com Leg Involved ______ ________ _______________________________________ _______ ____________ ------ 19970630 Act No. A91 ------ 19970610 Signed by Governor ------ 19970604 Ratified R173 Senate 19970527 Read third time, enrolled for ratification Senate 19970522 Read second time, notice of general amendments Senate 19970521 Committee report: Favorable 06 SF Senate 19970501 Introduced, read first time, 06 SF referred to Committee House 19970430 Read third time, sent to Senate House 19970429 Read second time House 19970424 Committee report: Favorable 30 HWM House 19970409 Introduced, read first time, 30 HWM referred to CommitteeView additional legislative information at the LPITS web site.
(A91, R173, H3859)
AN ACT TO AMEND SECTION 12-2-25, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO DEFINITIONS APPLYING TO LIMITED LIABILITY COMPANIES, SO AS TO EXCLUDE SINGLE-MEMBER LIABILITY COMPANIES AND GRANTOR TRUSTS FROM ALL STATE TAX LIABILITY IN CERTAIN CIRCUMSTANCES; TO AMEND SECTION 33-44-201, RELATING TO LIMITED LIABILITY COMPANIES AS LEGAL ENTITIES, SO AS TO EXCEPT CERTAIN SINGLE-MEMBER LIMITED LIABILITY COMPANIES; TO AMEND SECTION 33-44-1001, RELATING TO CHOICE OF LAW ISSUES FOR LIMITED LIABILITY COMPANIES, SO AS TO EXCEPT CERTAIN SINGLE-MEMBER LIMITED LIABILITY COMPANIES.
Be it enacted by the General Assembly of the State of South Carolina:
Single-member limited liability companies; grantor trusts; ignored for tax purposes
SECTION 1. Section 12-2-25 of the 1976 Code, as added by Act 448 of 1994, is amended by adding:
"(B) Single-member limited liability companies which are not taxed for South Carolina income tax purposes as a corporation, and grantor trusts, to the extent they are grantor trusts, will be ignored for all South Carolina tax purposes."
Single-member limited liability companies; exception provided for
SECTION 2. Section 33-44-201 of the 1976 Code, as added by Act 343 of 1996, is amended to read:
"Section 33-44-201. Except as provided in Section 12-2-25 for single-member limited liability companies, a limited liability company is a legal entity distinct from its members."
Single-member limited liability companies; exception provided for
SECTION 3. Section 33-44-1001(a) of the 1976 Code, as added by Act 343 of 1996, is amended to read:
"(a) Except as provided in Section 12-2-25 for single-member limited liability companies, the laws of the State or other jurisdiction under which a foreign limited liability company is organized govern its organization and internal affairs and the liability of its managers, members, and their transferees."
Time effective
SECTION 4. This act takes effect upon approval by the Governor.
Approved the 10th day of June, 1997.