H*3859 Session 112 (1997-1998)
H*3859(Rat #0173, Act #0091 of 1997) General Bill, By Robinson, Altman,
Campsen, Delleney, Harrison, J.D. McMaster and Riser
A BILL 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.
04/09/97 House Introduced and read first time HJ-26
04/09/97 House Referred to Committee on Ways and Means HJ-26
04/24/97 House Committee report: Favorable Ways and Means HJ-5
04/29/97 House Read second time HJ-80
04/30/97 House Read third time and sent to Senate HJ-26
05/01/97 Senate Introduced and read first time SJ-14
05/01/97 Senate Referred to Committee on Finance SJ-14
05/21/97 Senate Committee report: Favorable Finance SJ-29
05/22/97 Senate Read second time SJ-33
05/22/97 Senate Ordered to third reading with notice of
amendments SJ-33
05/27/97 Senate Read third time and enrolled SJ-18
06/04/97 Ratified R 173
06/10/97 Signed By Governor
06/10/97 Effective date 06/10/97
06/18/97 Copies available
06/18/97 Act No. 91
(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. |