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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:
"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
Fees
FormsTo obtain the forms for Business Opportunities, follow the link below:
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