How to Syndicate an Apartment Deal in South Carolina

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What is the South Carolina Rule 506 notice filing?
How do you form the deal LLC in South Carolina?
What South Carolina landlord and tenant rules should a sponsor know?
How does South Carolina property tax work when an apartment building sells?
Does South Carolina tax the deal LLC or its investors?
How DoorRaise fits in
FAQ

To syndicate an apartment deal in South Carolina, you form the deal LLC (or register an outside LLC with the South Carolina Secretary of State), raise under Rule 506(b) or 506(c), and file a Form D notice with a $300 fee through NASAA's EFD for the Attorney General's Securities Division, generally within 15 days of your first South Carolina sale. South Carolina then reassesses investment property when it is sold, which makes the purchase price the basis for your tax underwriting.

This is the South Carolina version of our general syndication guide. It covers what changes when the building, the investors or both are in South Carolina. It is general information, not legal advice.

What is the South Carolina Rule 506 notice filing?

South Carolina treats Rule 506 interests as federal covered securities and wants a notice. You file the SEC Form D copy and the fee through the NASAA Electronic Filing Depository (EFD) for the Securities Division of the Attorney General's office. DoorRaise's state data, from NASAA's fee schedule, lists the fee as $300, with no separate late fee listed. The common state deadline is 15 calendar days after the first sale in the state. EFD shows the exact amount before you pay, and that amount wins. See blue sky notice filings and blue sky fees by state.

How do you form the deal LLC in South Carolina?

A South Carolina LLC is formed by filing Articles of Organization with the Secretary of State; the published fee is $110. An LLC formed elsewhere that will own South Carolina property files an application for a Certificate of Authority, also published at $110, with a certificate of existence from its home state. Both need a registered agent with a South Carolina address. Confirm fees on the Secretary of State fee schedule before you file. See forming an LLC for a syndication and foreign qualification in the property state.

The South Carolina Residential Landlord and Tenant Act (S.C. Code 27-40-10 and following) covers most apartment leases. For nonpayment, a landlord gives a 5 day written notice to pay or the lease ends (27-40-710). A security deposit must be returned, with an itemized list of deductions, within 30 days after the tenancy ends (27-40-410). A landlord must maintain the premises in a fit and habitable condition (27-40-440), and evictions are filed in magistrate court. Your manager should use lease forms that follow the Act, since many of its tenant protections cannot be waived.

How does South Carolina property tax work when an apartment building sells?

South Carolina assesses non owner occupied real property, including apartments, at 6% of fair market value, and counties reappraise at least every five years. Unlike many states, an assessable transfer of interest, such as a sale, triggers a reappraisal at the current market value of the property (S.C. Code 12-37-3150), and the statute also looks at transfers of interests in an entity that owns the property. A buyer should assume the tax bill resets to the purchase price. Check with the county assessor whether a later transfer of LLC interests could count. See property tax reassessment in apartment underwriting and appealing property tax on an apartment building.

Does South Carolina tax the deal LLC or its investors?

South Carolina taxes income earned in the state, so a nonresident investor's share of the LLC's South Carolina income may require a return, and a pass through entity may have to withhold for nonresident owners. Ask your CPA early; the investor side is in state tax returns for nonresident syndication investors.

How DoorRaise fits in

DoorRaise helps sponsors raise equity for apartment buildings from their friends and followers under Rule 506(b) or 506(c), with verified accredited investors only. Investors fund by wire into escrow. By default DoorRaise files the property's state notice; on new deals, the first investor from another state pays that state's filing fee by card when they sign, and later investors from that state pay nothing. See pricing or how it works.

FAQ

How much is the South Carolina Rule 506 notice fee?

$300, per NASAA's fee schedule. EFD shows the final amount before you pay.

When is the South Carolina notice due?

Generally 15 calendar days after the first sale to a South Carolina investor. One filing covers the offering.

How long is the South Carolina nonpayment notice?

5 days under S.C. Code 27-40-710.

Does a sale reset South Carolina property tax?

Yes. A sale of investment property is an assessable transfer that triggers reappraisal at market value.

Sources

This article is general information as of November 2026, not legal, tax or investment advice. State laws and fees change: confirm with the state agency and your own attorney before you file. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.