Business Opportunities


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South Carolina law requires that all business opportunities be registered with the Secretary of State's office before a seller places advertisements or makes representations to prospective purchasers  (S.C. Code Section 39-57-10, et. seq.). A "business opportunity" is defined as the sale or lease of any product, equipment, supply, or service which is sold to the purchaser for the purpose of enabling the purchaser to start a business, and for which the purchaser is required to pay the seller a fee which exceeds $250.  The seller must also represent:

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that he will provide locations or assist the purchaser in finding locations for the use or operation of vending machines, racks, display cases or other similar devices, on premises neither owned nor leased by the purchaser or seller; or

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that he will purchase any or all products made, produced, fabricated, grown, bred, or modified by the purchaser using in whole or in part, the supplies, services, or chattels sold to the purchaser; or

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that he guarantees that the purchaser will derive income from the business opportunity which exceeds the price paid for the business opportunity; or that he will refund all or part of the price paid for the business opportunity, or repurchase any of the products, equipment, supplies, or chattels supplied by the seller, if the purchaser is unsatisfied; or

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the seller will provide a sales program or marketing program which will enable the purchaser to derive income from the business opportunity which exceeds the price paid; provided, that this does not apply to the sale of a marketing program made in conjunction with the licensing of a registered trademark or service mark.

"Business Opportunity" does not include the sale of any ongoing business. A business is not considered an ongoing business unless it has filed income tax returns with the SC Department of Revenue for at least one year.

The seller of every "business opportunity" must file with the Secretary of State a copy of the disclosure statement (see statute for details) before placing an advertisement or making other representations to prospective purchasers, and must update this filing as a material change in the required information occurs, but no less than every other year. The seller of every "business opportunity" must also file a copy of his/her financial statement that is not more than 13 months old. If the seller is required to provide a bond or establish a trust account (see statute for details), he contemporaneously must file with the Secretary of State a copy of the bond or a copy of the depository that the trust account is established.

To read the statute pertaining to Business Opportunities, follow the link below:

Business Opportunities Governing Statute

Contacts:

Administration  Doug Renew (803) 734-1758
Investigations 

Ed Brown

(803) 734-1797

Registrations

Tracy Sharpe

(803) 734-1958
 

Fees

Application & Registration $100.00

Forms

To obtain the forms for Business Opportunities, follow the link below:

Business rtunities Forms

 

 

 

 

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Postal Address
P.O. Box 11350
Columbia, SC  29211
Physical Address
Edgar Brown Building
1205 Pendleton Street Suite 525
Columbia, SC 29201

 

PLEASE NOTE:  The information on this page is a brief synopsis and should not be construed as the governing   statute.  The information contained in this site is considered accurate at the time of publication. We try to update this site frequently but the information contained herein is subject to change or modification. If you have further questions, you may wish to consult the person given as the contact for the respective divisions. The information contained in this site is not a substitute for legal counsel. You may need to contact a private attorney if you need legal advice or assistance. If you discover any errors in this site, please let us know by e-mailing our  webmaster.