State of South Carolina
Department of Revenue
301 Gervais Street, P.O. Box 125, Columbia, South Carolina 29214
SC PRIVATE REVENUE OPINION #00-4
SUBJECT:
Transfer of Property to a Single Member Limited Liability Company
(Sales and Use Tax)
REFERENCES:
S. C. Code Ann. Section 12-2-25 (2000)
AUTHORITY:
S. C. Code Ann. Section 12-4-320 (2000)
S. C. Code Ann. Section 1-23-10(4) (Supp. 1999)
SC Revenue Procedure #99-4
SCOPE:
A Private Revenue Opinion is a written statement issued to a specific
taxpayer by the Department to apply principles of law to a specific set of facts
or a particular tax situation. A Private Revenue Opinion does not have the
force and effect of law, and is not binding on the person who requested it
or the public. It is, however, the Department’s opinion limited to the specific
facts set forth, and is binding on agency personnel only with respect to the
person to whom it was issued and only until superseded or modified by a
change in statute, regulation, court decision, or advisory opinion, providing
the representations made in the request reflect an accurate statement of the
material facts and the transaction was carried out as proposed.
Question:
Based upon the facts below, is the contribution of substantially all of the assets and liabilities of
ABC, Inc. to a newly formed single member limited liability company, treated as a division of
ABC, Inc. for federal and South Carolina income tax purposes, subject to South Carolina sales
tax?
Conclusion:
Based upon the facts below, the contribution of substantially all of the assets and liabilities of
ABC, Inc. to a newly formed single member limited liability company, treated as a division of
ABC, Inc. for federal and South Carolina income tax purposes, is not subject to South Carolina
sales tax.
Facts:
ABC, Inc. (“ABC”) is a North Carolina corporation that owns or leases and operates retail stores,
and owns and operates distribution centers, truck fleets, and administrative offices