South Carolina General Assembly
112th Session, 1997-1998

Bill 3859


                    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

History


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 Committee


View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

(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.