In South Carolina you currently have "choice". Size up your team prior to the season and enter the appropriate division that you want to play in (Challenge or Classic). If you are a new team, pick your poison...play at whatever level you want.
In North Carolina, there is no choice. You are either promoted, relegated or you remain in the same division (state premier, classic 1, classic 2 or challenge). If you are a successful challenge team and you want to move up to classic, you have no choice. You have to start at the bottom at classic 2 and earn your way up.
To Hammer's comment about keeping the nucleus of a team together after tryouts in May....in North Carolina the CLUB owns the spot, not the TEAM. The DOC of a club can move players and teams around after tryouts in May and determine who plays where in the Fall.
Both systems have their pro's and con's.
