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North Carolina Business Name Search

Date: 08/23/2023 | Category: | Author: developers

A Guide to North Carolina Business Name Search

If you have an innovative idea and want to use it to establish a new company in NC, then you would need to start by choosing a business name. When choosing a company name, you must consider several details including conducting a proper North Carolina business name search. The entity search process varies from one state to another. Hence, we have created a guide that will help you to understand this process while providing insight into the North Carolina business name rules and guidelines.

North Carolina Business Entity Search

The process to register a business in North Carolina is dependent on the type of structure you choose. The first step prior to registering or incorporating is known as the business name reservation. You can choose a name for your company, but before applying for the name reservation, you will need to conduct a North Carolina business name search. This is a process that will help you ensure the availability of your chosen name. The search will reveal if any other company is using the same name in the state or not.

It is essential that you follow the North Carolina business name rules and guidelines, to guarantee that your business name is unique. Since the name of a company needs to be distinct and memorable, here are some tips that will help you:

  • You should choose a name that is easy to pronounce and remember like Jimmy’s Kitchen
  • There are plenty of business name generators available online for you to use
  • The business name should be chosen keeping in mind any possible future business expansions
  • Try not to pick a name that is similar to the name of a competitor
  • Ensure your chosen name doesn’t lead to trademark infringement
  • Business names should always be consistent with the brand and convey the purpose
  • Try to create a name that is web-friendly

What is a North Carolina business name search?

Every state in the US has a specific website that makes it easy to look up various entity information. The options available for this type of entity search will vary from one state to another. In some states, you will only need a name or part of a name to search the business name availability, while some other states may require a business registration number or filing number. Some states even allow multiple types of entity searches. You can conduct a North Carolina business name search through the secretary of state’s website.

Let’s look at an example to understand the concept and process of North Carolina business entity search.

Example: You want to establish a new company in North Carolina. The said business is a Software company based out of Morrisville, NC. You want to name it “OpenAnalytics Technologies”. Once you have chosen this name then the next step is to conduct a North Carolina business name availability search on the website of the Secretary of State. When you conduct the search, it brings up a similar company name – OpenAnalytics Technologies, LLC. The company has active status. This means you will not be able to use this name. Now if you change the name to “Open Analytics Technology” and conduct the North Carolina business name search again then it will show the availability of the said name.

Naming your North Carolina LLC

If you’ve decided to form a limited liability company in North Carolina, then it’s time to choose a name. This will be the official professional name of your LLC and will be considered the legal name as well. You will need to reserve this name after conducting a NC LLC name search and will be mentioned in the Articles of Organization. You can get help from AI-powered business name generators or look for company name ideas online. A business name will be the primary identity of your limited liability company and hence it will carry a lot of weight. Now, let’s look at two important aspects to consider when it comes to naming your limited liability company.

General LLC naming rules

One of the most important details to research when naming your company is the North Carolina business name rules and regulations. The naming and reservation of an LLC are governed by 2020 North Carolina General Statutes, Chapter 57D – North Carolina Limited Liability Company Act – Article 2 and 2020 North Carolina General Statutes – Chapter 55D. The general rules for an LLC name are:

  • The name should have words like Limited Liability Company or abbreviations like LLC or L.L.C.
  • It may also contain a combination of words and abbreviations like “ltd. liability co.”, “limited liability co.”, or “ltd. liability company” pursuant to NC Gen Stat § 55D-20 (2020)
  • This name should be distinguishable from any other name in the database of the Secretary of State. This can be checked by conducting a NC LLC name search.
  • There are “Word Prohibitions” that you need to check before confirming a name. The state prohibits the use of words such as bank, realtor, banking, and trust among others.
  • You need to also check the administrative code as well as the restricted list of words and phrases for specific industries or professions

If you follow the state naming guidelines then it will not only enable you to conduct a NC LLC name search properly but also ensure your chosen name is not rejected.

Search an LLC name availability on the North Carolina Secretary of State’s website

Once you have successfully conceived a name for your LLC based on the state naming guidelines, the next step is to conduct the NC LLC name search. The Secretary of State offers an online option to conduct a name availability search. The search options available are to look for a name that starts with a specific word, exact word, and SOSID (Secretary of State ID number).

  • Search by the company name starting with a specific word – This is the most common form of North Carolina business name availability search. This search can be used by both domestic and foreign entities. You can search for a name that starts with a specific word. Let’s look at an example to understand this process.

    Example: You want to start an LLC using the name Jimmy. Now if you use the “start with” option for a NC LLC name search then the word Jimmy will bring up 366 records of active and inactive businesses. You can check the database and form a name like Jimmy Allen LLC and it will show such a name being available.

  • Search for a company using an exact word – The second option is to conduct a NC LLC name search using an exact word. Let’s look at an example to understand how this works.

    Example: If your chosen name is “Software Automation Consulting” and you conduct a NC LLC name search in the state database using this exact name. The database search will bring up information pertaining to an LLC that is currently active and based in Cary, NC. Now, if you make small changes to the name and search using Software AC or Software Advanced consulting then the North Carolina business entity search reveals that such a name is available for reservation.

Do you want to form an LLC in North Carolina?

Naming your North Carolina Corporation

If you’ve chosen to incorporate a new business in the state of North Carolina then you must begin by choosing a name for your corporation. Once a name is selected, it will be considered the legal name of your company. It is important to note that you will have to reserve the business name before filing the Articles of Incorporation. It is important to conduct a NC Corporation name search as a first step in the name reservation process. Let’s look at the various aspects to consider when naming your new corporation.

General Corporation naming rules

The North Carolina business name rules and regulations are different for different entity structures. It is important to follow the state guidelines, otherwise, there is a high probability of the name being rejected. The naming of a corporation is governed by the 2020 North Carolina General Statutes – Chapter 55D. The general rules for a business name are:

  • The name should contain words like “incorporated”, “corporation”, “company”, or “limited”, or abbreviations like “inc.”, “corp.”, “ltd.”., or “co.” pursuant to NC Gen Stat § 55D-20 (2020)
  • The name should be unique and distinguishable from the name of any other company in the database of the Secretary of State. This can be fulfilled by conducting a NC Corporation name search.
  • You need to also check the restricted word list for specific industries or professions
  • North Carolina has “Word Prohibitions”, which is a list of names that a corporation can use only under special circumstances. The state prohibits the use of words such as realtor, bank, banking, and trust among others.

If you ensure the chosen business name is compliant with the naming guidelines in the state then it will help you to conduct a North Carolina business name availability search more systematically. The chance of such a business name getting rejected will be minimal.

Search for a Corporation name availability on the North Carolina Secretary of State’s website

Once you have finalized a name for your corporation, the next step is to conduct NC Corporation name search. The website of the Secretary of State offers an online solution to conduct a North Carolina business entity search. The entity search online can be carried out by using a specific word, an exact word or phrase, and SOSID (Secretary of State ID number).

  • Search by a company name that starts with a specific word – This is the most common form of NC Corporation name search. This search can be used by both domestic and foreign corporations. You can search for a name that starts with a specific word. Let’s look at an example to understand this process

    Example: If you want to start a corporation using the name Flynn. Now if you use the “start with” option for the word Flynn then the North Carolina business entity search will bring up records of 91 active and inactive businesses that start with Flynn. You can refer to this database as a way of helping you identify the right name or a name that is available for reservation.

  • Search by a company name using an exact word – The second option is to conduct a NC Corporation name search using an exact word or phrase. Let’s look at an example to understand how this works.

    Example: Your chosen name is “Flynn, Inc.” and you conduct a North Carolina business name availability search in the state database using this exact name or phrase. The search will bring up information pertaining to a domestic corporation that is currently active and based in Charlotte, NC. This means your chosen name is not available. Now if you change the name a little and conduct another search using the new name, which is Flynn Brothers Inc., then such a name is available for reservation.

Are you thinking of registering a Corporation in North Carolina?

Need any Assistance in North Carolina Business Name Search?

Every business is dependent on customers online and offline. Some businesses are dependent on vendors and business partners. Whomever the target audience may be, a business name is useful for creating just the right impact. Similarly, first impressions are equally important when it comes to attracting investors. A North Carolina business name availability search will ensure your chosen name is available and that you can reserve it. The entire process of a North Carolina business name search may look complex, if you begin to feel overwhelmed IncParadise can provide meaningful assistance.

We are one of the leading business formation service providers in North Carolina. We can assist you in conducting a North Carolina business entity search and provide accurate search results. If you are planning to form a corporation or an LLC in North Carolina then we can help you with the new business formation process. We also provide several additional services that will help you comply with annual state requirements.

Do you want to start a new business in North Carolina?

North Carolina LLC and INC Annual Filing Requirements

Date: | Category: | Author: developers

North Carolina LLC and INC Annual Filing Requirements

North Carolina, with its robust startup ecosystem and readily available skilled professionals, is ranked among the top states for new businesses. If you are interested in starting a company in this state then you must be mindful of the several state and business-related requirements to be fulfilled. The first step however is to determine your entity structure. Whether you form a limited-liability company or a business corporation, one of the mandatory annual requirements is filing a North Carolina annual report and state taxes. This guide will provide insight into the various facets of corporation and LLC annual filing in NC, well as filing annual taxes. You can use this guide for the information contained in the report, due dates for filing, filing processes, and penalties among others.

North Carolina LLC Annual Filing Requirements

Every state in the USA including North Carolina has certain annual requirements that new businesses must be compliant with. The entity structure you choose will determine the type of taxes you must file and other annual state requirements that you must fulfill. The North Carolina LLC annual requirements may be different from the requirements of a corporation or a sole proprietorship, hence the importance of defining a structure. The annual requirements are divided into two categories, one being the annual report and the other being taxes.

North Carolina LLC Annual Report

An annual report is the most important LLC annual filing in NC. It is mandatory for every new and existing company to file their annual report. Filing the annual report is governed by the 2020 North Carolina General Statutes, Chapter 57C – North Carolina Limited Liability Company Act. This report is essential as it contains information concerning the overall financial performance of the LLC. Some reports may also comprise facts and figures related to various activities undertaken in the prior fiscal year.

What does it include and how to file it?

The North Carolina annual report is a document that provides the state with recent information concerning an LLC operating within that state. It is mandatory to file this report by both domestic and foreign LLCs. The information within this report may vary from one state to another. Some states require specific and detailed information, while others require generic information associated with the said LLC.

According to North Carolina LLC annual requirements, you may be required to provide the following information pursuant to NC Gen Stat § 57D-2-24 (2020):

  • Name of the limited liability company
  • Street address
  • Mailing address if different from street address
  • Telephone number of the principal office
  • Name and address of the members or principal company officials
  • A brief description of the nature of business of the said LLC
  • Registered agent contact information

When you are ready to file the NC LLC annual report, it is recommended to double-check that the information provided in the report is current and accurate.

What is the due date for filing?

The LLC annual filing in NC is an important state requirement that needs to be submitted by a specified date. The report has to be filed each year by April 15th. According to North Carolina LLC annual requirements, the first annual report is normally due in the calendar year following the date of initial registration. You can even file annual reports as early as January 1st. The filing fee for the annual report is $200 if you file by mailing in the form, and $203 for filing online.

For Example: If you formed or registered your limited liability company on August 11, 2022, then you will need to file NC LLC annual report by April 15, 2023.

Do you want to file an Annual Report for your North Carolina LLC?

Penalties if you fail to file

You have to file the NC LLC annual report each year by April 15th. Failure to file in time can have consequences. In most states, a failure to file leads to penalties or additional fees for the late submission. In North Carolina, a late fee or penalty is not applicable. Instead, your company will receive a notice of pending revocation or dissolution, as filing your report is a mandatory North Carolina LLC annual requirement. This notice will also be sent if a filed annual report gets rejected. Once you receive this notice, you will have 60 days to file the LLC annual report. If you fail to file within the 60-day period, then your company will be considered to be in default status and a dissolution will take place.

If you have hired IncParadise as your North Carolina Registered Agent then you can benefit from using our entity management software. This software sends automatic email notifications a month prior to the annual report filing due date. It will allow you to order your report in advance and prevent dissolution.

North Carolina LLC Taxes

Every business operating in the state of North Carolina will be subjected to federal taxes, state taxes, and even municipal or county taxes. The tax rate and type will vary according to the state. Business taxes are an important North Carolina LLC annual requirement. Since an LLC is a pass-through entity, it is not required to file any Federal taxes. Instead, owners or members will be required to file personal income taxes.

If a limited liability company is selling goods in North Carolina, then the entity will be required to collect and pay sales taxes. The company will have to register with the Department of Revenue and obtain a Sales Tax License. Apart from this privilege license tax, self-employment tax, and withholding taxes may also be applicable.

North Carolina Inc Annual Filing Requirements

An annual report is a comprehensive report focused on the activities of a corporation. It is also an integral part of North Carolina INC annual requirements. This document is required because the state feels that the nature of a business or other details can change within the span of one year. The report also presents a method for the state to collect specific financial information related to a corporation or company. This report has to be filed by new and existing businesses including both domestic and foreign corporations operating in the state. There is a process for filing the North Carolina corporation annual report which includes paying a fee. Apart from this, a corporation is also required to file taxes as a part of the state’s annual business requirements.

North Carolina Inc Annual Report

If you’ve already registered a corporation or are planning to incorporate in the state then you must fulfill all North Carolina INC annual requirements such as filing the annual report. A domestic corporation has to file the annual report pursuant to 2020 North Carolina General Statutes, Chapter 55, NC Gen Stat § 55-16-22 (2020).

What does it include and how to file it?

One of the most important North Carolina INC annual requirements is filing an annual report. The contents of the report will vary according to the business structure. This simply means that the information provided in an LLC annual report will be different from the information of a business corporation. The North Carolina Corporation annual report will contain the following information in the report pursuant to the governing laws of the state:

  • Business name of the corporation
  • State of incorporation for foreign corporations
  • The street address
  • The mailing address if it is different from the street address
  • Name and address of the registered agent
  • Telephone number of the principal office
  • The name, title, and business address of all principal officers
  • Description of the general nature of business

It is important to ensure that the information provided in the report is current and accurate. The North Carolina annual report can be filed online as well as by mailing in the form.

What is the due date for filing?

A North Carolina corporation annual report is an official document that has to be submitted by a state-specified date. This report has to be filed year after year as long as the business is actively registered with the state. Filing the annual report will ensure that your company is in compliance with state laws and can enjoy an active status. According to the North Carolina INC annual requirements, the annual report has to be filed by the 15th day of the 4th month, following the end of the fiscal year. The filing fee for the annual report is $25 if submitted through the mail, and $23 when submitted online.

For Example: If you incorporated your company on June 10, 2022, and the corporate year ends on December 31, 2022, then the due date would be April 15, 2023.

You can file an Annual Report for your North Carolina Corporation!

Penalties if fail to file

An annual report is considered an extremely important state requirement, and each state has its own law concerning the submission and failure to file. If you fail to file the North Carolina corporation annual report, there are no penalties or fines, nor are there any provisions for late fees. Instead, the corporation will receive a notice of pending revocation or dissolution. Once you receive the notice, you will have 60 days to file the North Carolina annual report. If you fail to file within the 60-day period then your corporation will undergo administrative dissolution pursuant to NC Gen Stat § 55-14-20 (2020).

It’s important to file the annual report on time, and our entity management software can help you do so. It has been created with the North Carolina INC annual requirements in mind. The software will send email notifications in advance so that you don’t miss the due date. This will save you time and prevent an administrative dissolution.

North Carolina Inc Taxes

Every corporation operating in the state of North Carolina including newly established businesses are required to fulfill all North Carolina INC annual requirements. One such requirement is filing federal, state, and municipal taxes. A C-Corporation in the state will be required to file both corporate taxes and franchise taxes each year. The shareholders of such a corporation will be required to file an income tax return on their distributions. Apart from this, if your company is involved in the sales of products listed by the NC Department of Revenue (NCDOR) then a Sales and Use Tax may also be applicable.

Need any Assistance in Filing North Carolina LLC or INC Annual Reports?

The annual compliances are different in each American state, but most states have certain common requirements like the North Carolina annual report and taxes. If you select IncParadise as your registered agent in NC, then we can assist you with any information you may require related to the LLC annual filing in NC or that of a corporation. We can also help you file it by the due date to help avoid any penalties.

IncParadise is an expert in new business formation services and understands that each business has different requirements. IncParadise can help you with your North Carolina LLC or INC annual filing requirements and we offer many additional services including EIN, and certificate of good standing among others.

Need assistance with filing the North Carolina Annual Report?

How much does it cost to form a North Carolina LLC or Corporation

Date: | Category: | Author: developers

How much does it cost to form a North Carolina LLC or Corporation?

North Carolina is the ninth wealthiest state in terms of GDP (gross domestic product) with a large part of the economy being driven by agriculture and manufacturing. It ranks amongst the top five states in the best business climate category. The cost to form a North Carolina LLC or corporation is also amongst the lowest, making this a favorite destination for startups. Hence, we have created this guide to provide insight and information into the various costs and other aspects of an LLC vs Corporation in NC, including the costs related to the new business formation, annual maintenance costs, and the advantages of both entity structures

North Carolina LLC or Corporation

Limited-liability companies and business corporations are the two most popular entity structures. This is because both business structures offer flexibility and several other benefits to their owners, members, and directors among others. The cost to form a North Carolina Corporation or LLC is also lower as compared to several other states such as New York, South Carolina, Texas, and Massachusetts among others.

Which business entity should I choose for my North Carolina business?

North Carolina has one of the best locations, transportation advantages, robust infrastructure, educational institutions, and an exceptional workforce among others. These factors play a key role in determining the growth of a new business just as much as the cost to form a North Carolina LLC or a corporation does. When choosing an entity structure, it is important to take into consideration the fact that each entity structure has advantages and disadvantages. Some of these benefits and drawbacks can have a significant impact on the annual maintenance cost of a North Carolina Corporation or even impact other aspects of the business like ownership control and legal liability. Let’s look at some of the decisive elements of a business structure:

  • Taxation – One of the decisive factors in choosing a certain business structure is how the company will be taxed. If you look at the LLC vs Corporation in NC for a comparative analysis then you will find that the tax treatment is different for either entity structure. An LLC is considered a pass-through entity and hence the company doesn’t pay taxes on the business income. Corporations are subject to double taxation which includes Federal and state corporate income taxes as well as taxes on personal income like dividends and gains earned by shareholders.
  • Funding – The cost to form a North Carolina Corporation is a small part of the total finances required by a new business to reach a sustainable stage. Every small business, startup, or medium enterprise requires funds to move from the initial formation stage to the brand-building and customer delivery phase. It is easier for corporations to get capital investment from VCs and other private funding sources vis-à-vis LLCs and other business structures.
  • Limited Liability Protection – One of the most important aspects to consider when comparing an LLC vs a Corporation in NC, is limited liability protection. Liability protection helps with keeping the personal assets of owners and investors safe, thus avoiding any personal liability towards the debts of the said company.
  • Complexity – There are several types of business structures that you can choose to form. For some, the formation and operational process is simple, and for others, it can be a complex process.

Pros and Cons of Forming an LLC or Corporation in North Carolina

The overall cost to form a North Carolina LLC or a corporation is dependent on several factors. These can be considered advantages for particular entity structures. If you are unable to choose between an LLC and a corporation, then the pros and cons of each structure may help you make the right decision. It is recommended to always recognize the various assets and liabilities of any given structure. Let’s look at a comparative analysis with a focus on a North Carolina LLC’s cost per year versus that of a corporation.

Pros of an LLC or Corporation

  • Limited liability is applicable for all employees, members, directors, shareholders, and officers in either structure
  • If you incorporate in North Carolina then you can benefit from an unlimited amount of shareholders
  • The overall cost to form a North Carolina LLC is lower than a corporation as there are fewer regulations and less paperwork
  • Both LLCs and C-Corporations can elect S-corporation tax status
  • A Limited Liability Company does not have a rigid management structure
  • A business corporation enjoys perpetual life
  • The forming cost for a NC Corporation is lower than that of an LLC when it comes to filing annual reports.

Cons of an LLC or Corporation

  • The cost to form a North Carolina Corporation is higher than that of an LLC
  • When it comes to taxes, the annual maintenance cost of a North Carolina Corporation is higher as it undergoes double taxation
  • In North Carolina, an LLC will be subjected to a self-employment tax
  • In a corporation, shareholders will not be able to write off any business losses on their personal income statement
  • The forming cost for a NC Corporation is higher as there is more paperwork involved and complex processes to make the company operational.

North Carolina LLC Cost

A limited liability company is considered one of the best structures for first-time business owners. There are different types of LLCs that you can form in the state including single-member or multi-member LLCs. It is a flexible business structure and the cost to form a North Carolina LLC is also quite low. There are many benefits to forming an LLC, so if you have decided to form one then let’s take a look at the annual registration and various operational costs for this entity.

Cost for forming a North Carolina LLC

The North Carolina LLC cost per year can be categorized under one-time costs and variable costs. The initial formation or new LLC registration costs are considered one-time costs. Let’s look at the processes that are considered to be an essential part of the cost to form a North Carolina LLC.

  • One of the important initial costs to form a North Carolina LLC is the name reservation. You will need to file the Application to Reserve a Business Entity Name with the office of the Secretary of State. You can file online or offline and the fee is $30.
  • To register your LLC in North Carolina, you will have to file the Articles of Organization with the Secretary of State. The filing fee is $125. This is a one-time registration and there will be no extra fee unless you make an amendment. The fee for an amendment of the Articles of Organization is $50. The North Carolina LLC cost per year for the registration of foreign entities (Certificate of Authority) is $450.

Start your LLC in North Carolina Today!

Annual maintenance cost for North a Carolina LLC

Annual maintenance is an important state compliance objective that every new business must meet. Once a limited-liability company has registered with the state, it must ensure all requirements are fulfilled. Fulfilling these requirements will also help an entity to enjoy an active status in the state. The annual maintenance costs are different from the cost to form a North Carolina LLC. The cost includes:

  • Business Licenses – Once you’ve registered your LLC with the state and filed your Articles of Organization, you will have to apply for and obtain the necessary business licenses and permits. Licenses are a mandatory requirement in most states including NC and they ensure the operations of an entity are not restricted. Licenses and permits are a key cost component for the North Carolina LLC cost per year. The cost varies according to the type of license, the number of licenses or permits, and the issuing authority or department. An LLC may require additional licenses and permits from the counties that the company operates in. This is a variable as well as a recurring cost as licenses have to be renewed each year.
  • Annual Reports – In the state of North Carolina, an annual report is one of the most important components of annual maintenance for a limited liability company. This report is filed annually by April 15th. If you fail to file this report then your company may receive a notice of dissolution. This is a recurring North Carolina LLC cost per year and the filing fee is $203 for filing online and $200 for filing through mail (submit paper form).

If you are feeling overwhelmed with the different processes for a new business formation and annual maintenance then we, at IncParadise can assist you. We can help you to register your LLC in North Carolina as we possess the experience and expertise related to new business formations in the state.

North Carolina Corporation Cost

A business corporation is often the first choice for entrepreneurs and startups as this type of structure attracts venture capitalists (VCs) and other sources of funding with ease. If you’ve chosen to incorporate then it is important to identify the cost to form a North Carolina Corporation. There are different kinds of expenses associated with the formation and operation of this type of entity.

The Cost of Forming a Corporation in North Carolina

There are several processes involved with bringing a corporation into existence in the state of North Carolina. Each of these processes has certain costs associated with them. The forming cost for a NC Corporation can be categorized under fixed costs and variable costs. The incorporation fees are a one-time cost that includes:

  • When you incorporate in North Carolina, the first step is to identify and reserve a business name. If a chosen name is available then you will be required to file an Application to Reserve a Business Entity Name with the office of the Secretary of State. You can file the name online or offline. The filing fee is $30 and is an integral part of the cost to form a North Carolina Corporation.
  • Once you’ve reserved a business name, the next step is to apply for the registration of the entity. This is made possible by an online or offline submission of the Articles of Incorporation. The forming cost for a NC Corporation is $125. This incorporation or business registration cost is a one-time fixed cost. If at any later date, you want to make amendments to the articles then that is possible by filing the Articles of Amendment for Business. The fee for an amendment submission is $50.
  • Form a North Carolina Corporation Today!

Annual maintenance cost for a North Carolina Corporation

Apart from the initial incorporation cost, there will be certain other costs included in the annual maintenance of the said company. Annual maintenance helps a corporation to be compliant with state laws and enjoy an active status. This is not a part of the initial cost to form a North Carolina Corporation and can be recurring in nature. The annual maintenance cost of a North Carolina Corporation includes:

  • Business Licenses – One of the most important documents that can help a corporation or any form of business to transact in the state is a business license. This type of forming cost for a NC Corporation is recurring as you have to renew your license or permits annually. The licensing fee or cost of a permit will vary according to the type of license, issuing authority, and location of the business. You may also be required to apply for zonal permits and occupational licenses.
  • Annual Report – Once you’ve registered a corporation in the state of NC, you will need to fulfill annual compliances under state business laws. One such compliance is filing an annual report. This is a recurring but fixed annual maintenance cost of North Carolina Corporation. If you file online then the fee is $21 and if filed through the mail, (paper form) then the fee is $25.

The cost to form a North Carolina Corporation will also take into account certain other expenses associated with the company such as obtaining the Employer Identification Number (EIN) and filing annual business taxes. We at IncParadise can provide guidance and meaningful assistance towards fulfilling annual maintenance requirements, as well as help you to incorporate in North Carolina.

Need any Assistance in Forming Your North Carolina LLC or Corporation?

If you’ve decided to form a limited liability company or a corporation in North Carolina, then you can rest assured that your chosen destination is one of the best in terms of the business climate. Of course, there is a cost to form a North Carolina LLC or Corporation depending on the processes involved. We at IncParadise, have an understanding of all the necessary processes and can provide valuable assistance by helping you to incorporate in North Carolina or form an LLC quickly and efficiently.

IncParadise is one of the leading business incorporation and registered agent service providers in NC and we have helped thousands of companies to start their business in this state. We also provide additional services to North Carolina businesses like getting a tax ID, foreign qualification, and S corporation status among others.

Are you ready to form a new business in North Carolina?

How to Register a Corporation in North Carolina

Date: | Category: | Author: developers

How to Register a Corporation in North Carolina?

North Carolina is becoming a platform for the growth of the tech industry especially in energy sectors, information, life-science, and environmental sectors. One of the most populous cities, Charlotte is also home to several fortune 500 corporations like Lowe’s Companies, Inc., and Honeywell International Inc. If you want to incorporate in North Carolina then this guide will provide you with the information on how to form a corporation in NC. The guide will take you through the various processes and state requirements like a business name, North Carolina registered agent, local licenses and permits, preparing bylaws, and taxes among others.

North Carolina Corporation

North Carolina is a state with very high growth prospects for small and medium enterprises (SMEs). You can form a corporation in North Carolina with ease as the state offers just the right business environment and support in terms of resources and incentives. The state recorded a real Gross Domestic Product (GDP) of $533.09 billion with the annual percent change of the real GDP at 7 percent. The state also offers several programs tailored for startups and businesses that are considered to be some of the top benefits of incorporating in North Carolina.

What is a North Carolina Corporation?

A corporation or a traditional C Corporation is also known as a business corporation and a for-profit corporation. It is a type of legal entity that is separate and distinct from the owners. A corporation normally possesses the same responsibilities and rights as those of individuals and hence, it is also known as a legal person. You can register a corporation in North Carolina with the office of the Secretary of State. The various types of corporations that you can form in the state are:

What are the benefits of incorporating in North Carolina?

Entrepreneurs prefer to incorporate in North Carolina as this type of business structure has several advantages over other entity structures. Some of the advantages are:

  • Limited liability – A limited liability company is considered to be a type of legal structure where-in the personal assets of owners and investors are off-limits when it comes to the debt obligations of the company. This is one of the top benefits of incorporating in North Carolina as it helps with minimizing the economic loss to individual assets that have been invested in the corporation.
  • Stock Options – Once you form a corporation in North Carolina, you will be able to offer stock options. This creates shareholders and such individuals will be able to receive dividends from company stock.
  • Access to investment – When it comes to the benefits of incorporating in North Carolina, you can rest assured that this type of entity structure is lucrative to investors. Unlike an S Corporation, a C Corporation can have an unlimited number of investors. A corporation can get pooled capital from investors through investment companies, venture capitalists, or even personal investors.

Starting a North Carolina Corporation

North Carolina is home to one of the fastest-growing startup ecosystems in the nation. There are several key factors for this growth including strong infrastructure, business-friendly tax rates, and access to accelerators as well as incubators. So if you want to start a business and are wondering how to form a corporation in NC then there are several important processes to focus on.

1. Name Your North Carolina Corporation

If you are planning to register a corporation in North Carolina then one of the first steps towards this is to identify a name for your company. The business name is one of the most important aspects as it will help customers to associate the product or service with the said name. A company name creates the first impression with your future customers. There are certain state naming guidelines that a corporation has to follow like using words like “corporation”, “incorporated”, or abbreviations like “corp.”, or “inc.”

Once you have identified a name, you need to conduct a name availability search. This will ensure your chosen name is available and you will have the opportunity to reserve the name. It is important to note that you will not be able to register NC Corporation online without a business name. You will have to submit the Application to Reserve a Business Entity Name with the office of the Secretary of State along with a fee of $30.

2. Appoint North Carolina registered agent

If you are wondering how to form a corporation in NC then you should know that the new business formation process in the state will vary according to the entity structure. This process will involve filing incorporation documents, name reservation, obtaining licenses and all the while maintaining compliance with all NC state laws. The incorporation process may seem complex and this is where a reputable North Carolina registered agent like IncParadise can assist you.

The primary role of a registered agent is to receive any Service of Process, which includes receiving all types of legal communications as well as other business-related documents on behalf of the said entity. To incorporate in North Carolina, you will need to designate and continuously maintain a registered agent in the state pursuant to NC Gen Stat § 55-5-01 (2020). IncParadise can be your registered agent in North Carolina as we know state business laws and all business-related processes.

3. File Articles of Incorporation with the North Carolina Secretary of State

Once you have reserved your business name, the next step would be to follow the process to form a corporation in North Carolina. You will be required to prepare and submit the Articles of Incorporation (Form B-01) pursuant to NC Gen Stat § 55-2-02 (2020). You can register an NC Corporation online or the articles can be mailed to the office of the Secretary of State. There will be a filing fee of $125.

Alternatively, IncParadise can assist with filing your Articles of Incorporation. We are incorporation specialists and with our help, you will be able to ensure compliance with NC state regulations and thus save valuable time.

Are you thinking of starting a North Carolina Corporation?

4. Prepare Bylaws for Your North Carolina Corporation

One of the key requirements for any new corporation is the corporate bylaws. They are also known as company bylaws and are guidelines that highlight the way you will structure and operate your company. Bylaws are a mandatory requirement in most US states although you are not required to submit them to the office of the Secretary of State. The requirement of bylaws is governed by NC Gen Stat § 55-2-06 (2020).

The bylaws provide a specific roadmap to a corporation and also show how to form a corporation in NC. It constitutes several components although these may vary from one entity to another. A general roundabout of a corporate bylaw includes information concerning:

  • Corporate information
  • Board of directors
  • Officers appointed by the directors
  • Shareholder information
  • Issuance of stock to shareholders
  • Rights and responsibilities
  • Corporate Meetings
  • Conflicts of interest
  • Committees
  • Indemnification
  • Amendment to the Bylaws

5. Appoint initial directors & hold an organizational meeting

If you’ve decided to register a corporation in North Carolina then it would benefit you to know that an integral part of the incorporating process is appointing initial directors. They are considered to be the first directors who would be named in the articles of incorporation. They can be appointed through an organizational meeting or individuals appointed by initial owners or shareholders of the said corporation. The board of initial directors will help you in making decisions relevant to several areas of the company like issuance of shares, strategic growth, and adoption of bylaws among others.

In most corporations, the initial board of directors is responsible for undertaking the first organizational meeting. This is a key event and the primary objective is to execute tasks that are integral to the functioning of the corporation. Some of the key areas of this organizational meeting are:

  • Distribution of initial shares
  • Drafting articles of incorporation
  • Election of officers
  • Approving corporate bylaws
  • Approving the corporate seal
  • Voting toward accepting the stock certificates

6. Get an EIN

If you are planning to register a NC Corporation online or offline then there are certain annual requirements that you will need to fulfill. One such requirement is that of filing state, corporate, or business taxes. To file taxes, you will have to apply for and obtain an Employer Identification Number (EIN). This is a unique 9-digit number assigned to trusts, businesses, and nonprofits by the Internal Revenue Service (IRS). It is also known as the Federal Employer Identification Number (FEIN) or Tax Identification Number and is also used for maintaining corporate shields and opening bank accounts.

7. Open a bank account

Now that you have decided to incorporate in North Carolina, it is time to consider the financial side of the business. One of the focal points is transacting, and this is facilitated using a business bank account. This type of bank account is also known as a business checking account and should be kept separate from your personal account. The greatest benefit of a checking account is that it will help with tracking your expenditures as well as your income quite efficiently. A business bank account will also help with improving the overall credit score of the company.

One of the benefits of incorporating in North Carolina is that you can now open a banking account online effortlessly with Cheqly. This is a modern-day neo-bank for startups. When you open an account with Cheqly, it will be based in the US and help facilitate transactions in the USA, as well as globally. With Cheqly, you can receive and make payments quickly through wire transfers.

8. Comply with other tax and regulatory requirements

Once you form a corporation in North Carolina you may be required to pay annual taxes to the state. A C Corporation formed in the state is required to file corporate income and franchise tax returns although certain corporations are also exempt from the franchise tax pursuant to G.S. 105-125 and 105-130.11. If your company is selling products to customers in the state then you may have to file Sales and Use Tax. Certain items may be subject to a 7 percent combined general rate while some items may be subject to a miscellaneous rate.

When you register your NC Corporation online, you will also need to also ensure all annual state compliances have been fulfilled. Apart from the taxes, you have to file an Annual report along with a filing fee of $23 (online filing) or $25 (by mail).

Know more about starting a North Carolina Corporation

You’ve decided to register a corporation in North Carolina but have several unresolved queries. You may have questions concerning the incorporation process, dissolutions, starting costs, and foreign corporations among others. Hence, we have created a special section of “Frequently Asked Questions” for addressing some of the queries that you may have as a new business owner.

How do I form a “C” corporation and an “S” corporation in North Carolina?

There are different types of corporations that you can form in North Carolina like a traditional C Corporation and S Corporation. Let’s try and understand each of these entities.

  • C Corporation – If you register a NC Corporation online as a C Corporation then you will be required to file the Articles of Incorporation with the office of the Secretary of State along with a fee of $125 pursuant to NC Gen Stat § 55-2-02 (2020).
  • S Corporation – If you are wondering how to form a corporation in NC as an S Corporation then you need to proceed with the registration of a C corporation first. Once you have formed a traditional corporation, and received an EIN, the next step would be to complete and submit Form 2553 to facilitate the S corp., tax election. This form is known as “Election by a Small Business Corporation” an S corp., election is governed by section 1362 of the Internal Revenue Code.

How much does it cost to start a corporation in North Carolina?

If you want to incorporate in North Carolina then the overall cost of starting a corporation will depend on whether it is a domestic or foreign corporation. There are primarily three initial starting costs for any business corporation in the state and they are:

  • Business Name – This denotes the cost of reserving a business name.
  • Cost of Incorporation – This includes the filing fee for Articles of Incorporation.
  • Business Licenses – The third cost is variable and will depend on the business activity, profession, and location of the company. Your company may require single or multiple business licenses and permits.

How do I look up a corporation in North Carolina?

To register a NC Corporation online, you will need to reserve your chosen business name first. You may have chosen a name for your company following the state naming guidelines but it is essential to ensure the name is unique. Another company might be using the same name as the one you have chosen. This is where the name availability search is quite useful. You will be able to search through a detailed state database for businesses.

Do I need a business license for my North Carolina Corporation?

Yes. If you are planning to form a corporation in North Carolina and want to transact in the state then you will need to apply for and obtain proper state licenses and permits. You may be required to apply for county licenses also known as municipal licenses. If you are selling products or services in the state then you will be required to obtain a Sales Tax License also known as a Certificate of Registration.

You may also be required to obtain permits from county zoning departments, especially for regulated occupations. You can subscribe to our Business License Research Report service as it provides detailed information on different aspects of licensing in the state.

Can I register a foreign Corporation in North Carolina?

Yes. If you already have an existing business in any other state and want to move your business or expand in North Carolina then you need to apply for foreign qualification. This is a process by which you can register a corporation in North Carolina as a foreign corporation. You will be required to file a Certificate of Authority with the Secretary of State pursuant to NC Gen Stat § 55-15-01 (2020) and NC Gen Stat § 55-15-03 (2020). Whether you register NC Corporation online or through the mail, you will need to submit a certificate of existence or certificate of good standing along with the authority to transact business in the state. The certificate of existence will be issued by your home state or the state where said entity was initially incorporated.

How do I dissolve a corporation in North Carolina?

Once you incorporate in North Carolina, the said entity will come into existence officially. If at any given point in time, you want to close the business then it is possible through the process of dissolution. Dissolution in the state is governed by the 2020 North Carolina General Statutes, Chapter 55 – North Carolina Business Corporation Act, Article 14 – Dissolution. There are three categories of dissolution and they are:

  • Dissolution by incorporators or directors
  • Administrative Dissolution
  • Judicial Dissolution

You will be required to file the Articles of Dissolution (Form B-06) to initiate the process of dissolution by the board of directors and shareholders. It is important to note that the Articles of Dissolution prior to the issuance of shares will be a different form (B-05). The filing fee for either is $30.

Ready to Start a North Carolina Corporation?

There are different types of business structures that you can choose to form although the benefits of incorporating in North Carolina are far more as compared to other entity structures. If you are thinking of registering a domestic or foreign entity in the state then IncParadise can assist you with the process of incorporation.

IncParadise is one of the top North Carolina registered agents and incorporation specialists in the state. We also offer a wide variety of additional services like EIN assistance, and certificate of good standing in North Carolina among others.

Do you want to incorporate in North Carolina?

How to form your LLC in North Carolina

Date: | Category: | Author: developers

How to form your LLC in North Carolina?

NC is a highly business-friendly state with a stable economy and hence entrepreneurs prefer to form a North Carolina LLC. The cities of Greensboro, Charlotte, and Raleigh have experienced rapid economic growth in the last few decades. The Real Gross Domestic Product (GDP) of the state is $533.09 billion generated by several big industries like manufacturing, agriculture, and financial services. This article has been created to provide you with guidance and information on various aspects of forming a limited liability company including NC LLC filing requirements. This guide will provide an insight into standard new business requirements like company name, LLC operating agreement, local licenses and permits, and taxes among others.

LLC in North Carolina

There are different business structures you can choose in North Carolina although a limited liability company remains quite popular. You can opt for North Carolina LLC filing online or offline and the paperwork is less in comparison to profit corporations. The state is home to more than nine hundred thousand small businesses and includes 13 Fortune 500 companies. When you file LLC in NC, there are several benefits that can be leveraged from state-governed small business incentive programs to grants and funding programs.

What is a North Carolina LLC?

If you are planning to form a North Carolina LLC then you need to first understand this type of business structure. This is a type of corporate structure, which primarily protects its owners or members from personal responsibility toward the debts or liabilities of the company. It is often considered to be a hybrid entity as it constitutes characteristics of partnership, corporation, and sole proprietorship. If you file an LLC in NC then it will be governed by the state statutes and the said LLC will need to comply with all state requirements. The different types of LLCs that you can form in North Carolina are:

  • Single-member LLC
  • Multi-member LLC
  • Professional limited liability company (PLLC)
  • Series LLC
  • Foreign limited liability company

Benefits of forming an LLC in North Carolina

A limited liability company is one of the most favored structures, especially among first-time business owners. This is mostly because of the many advantages it has as compared to other entity structures. The advantages of filing a North Carolina LLC application are:

  • A Separate legal entity – When a limited liability company is formed, it is considered to be separate from its owners or members. It is separate in terms of responsibilities, rights, and liabilities. When you file LLC in NC then the company will be able to own, buy, as well as use its own personal or real property. The limited-liability company will also be able to make its own guarantees and contracts.
  • Limited liability – The biggest advantage of Filing a North Carolina LLC online is limited liability. This is possible because the company and owners are separate. Limited liability refers to the fact that an individual asset of any LLC member cannot be used as collateral or for satisfying the debts and other obligations of the said LLC.
  • Perpetual existence – Unless mentioned in NC LLC filing requirements or articles of organization, most limited liability companies enjoy perpetual existence. This simply means that the owner of a said LLC can be changed without triggering the dissolution of the LLC. The retirement or death of a member does not mean that the limited-liability company will cease to exist or operate.

Forming an LLC in North Carolina

North Carolina has one of the top business climates in the Southeastern region of the United States. In a business climate executive survey report, North Carolina has been ranked second successively for five years due to its pro-business environment and robust strategic economic development plan. Although entrepreneurs prefer to form a North Carolina LLC, it is important to key areas that will enable you to set up and operate your LLC with ease.

1. Choose a North Carolina LLC name

One of the foremost aspects to focus on for any new LLC in the state of North Carolina is its business name. A business name is always as important as the company itself. This is because the name of a limited liability company will play a monumental role when it comes to the growth and perception of the company or the brand. The NC LLC filing requirements for a new business constitute naming guidelines governed by the North Carolina General Statutes, Chapters 55D, 57C, and 57D.

The guidelines require the name to contain words like “limited liability Company”, “limited company” or abbreviations like L.L.C or LLC, or combinations like “Ltd. Liability Co.” Once you have identified a business name, you will need to conduct a North Carolina LLC search also known as the LLC name availability search. This process will reveal whether your chosen name is available or not. If the chosen name is available then you will proceed to file the Application to Reserve a Business Entity Name pursuant to NC Gen Stat §55D-23 (2020). There is a filing fee of $30 and the application has to be submitted to the office of the Secretary of State.

2. Choose a North Carolina LLC registered agent

Another important role played in new business formation in the state, is by a North Carolina LLC registered agent. It is necessary to understand the role of a registered agent also known as a resident agent or RA. A company or an individual who has been designated to receive any legal documents or correspondence on behalf of a limited-liability company is known as a registered agent. According to NC Gen Stat § 57D-2-40 (2020) and NC Gen Stat § 55D-30 (2020), to form a North Carolina LLC, you will need to continuously maintain a registered agent in the state.

IncParadise can be your North Carolina LLC registered agent as we are committed to providing service of process as required by the North Carolina General Statutes. We can also assist with the process of helping you register a limited liability company in the state.

3. File Article of Organization with the North Carolina Secretary of State

The foremost NC LLC filing requirement is to submit the documents for new business registration. You will need to prepare and then submit the Article of Organization pursuant to NC Gen Stat § 57D-2-21 (2020) along with a filing fee of $125. You are required to provide a listing of company officials (owners or members) in the articles. You can submit the articles to the office of the Secretary of State, Business Registration Division. You can also opt for North Carolina LLC filing online.

IncParadise, one of the top registered agents in the state can provide guidance regarding the North Carolina LLC search as well as assist with the submission process for Article of Organization.

Form your new business in North Carolina Today!

4. Prepare a North Carolina LLC operating agreement

One of the popular business entity structures for entrepreneurs and first-time business owners is a limited liability company. Although recordkeeping formalities are minimal for this type of structure, having an operating agreement is necessary. The operating agreement is mentioned in the NC LLC filing requirements and you will not be required to share it with the state as it is considered to be an internal document. There are several reasons why such a document is essential but the most important is that it provides proof of ownership. The agreement will contain the names of all members including those provided in the North Carolina LLC application. Generally, an LLC operating agreement should include information about:

  • Transfer of membership interest
  • Initial contributions
  • Rights and responsibilities of members
  • Voting rights as well as decision-making powers
  • Allocation of profit, losses, and distributions
  • Management and membership structure
  • Various rules for holding internal LLC meetings
  • Bookkeeping procedures
  • Dissolution or buyout

5. Obtain an EIN for your North Carolina LLC

Once you form a North Carolina LLC, you will be required to maintain compliance with all annual requirements of the state. One of the important requirements is filing state, business, or local taxes. To file taxes, you will need to apply for and obtain a tax ID also known as Employer Identification Number (EIN). This is a unique tax ID number that is issued by the Internal Revenue Service (IRS). Normally, a single-member LLC is not required to obtain an EIN unless the company has employees or has to file excise tax returns.

Do you want to obtain an EIN in North Carolina?

6. Check local licenses and permits

Once you form a North Carolina LLC, it is time to make the business operational. A company can transact business in the state only when it has the necessary licenses and permits. There are many kinds of licenses available for you to apply for, and a single LLC might even need more than one license or permit. The business licenses in the state can be categorized as under:

  • Sales Tax License – This is a mandatory license for any LLC that is selling a product directly or indirectly to its consumers. Selling should be the primary activity. In such a scenario, after you file an LLC in NC, you will need to register with the Department of Revenue and obtain a Certificate of Registration.
  • Occupational Licenses – Many different categories of occupation or profession require a license or permit. The issuing authority for such licenses and permits may also vary.

    Example: If you want to start an Adult Care Home with 2-6 residents then you will need to apply for a business license under Licensure Rules 10A NCAC 13G. The licensing authority will be the NC Department of Health & Human Services. Similarly, if you operate Airport Storage then the license will be issued by the NC Department of Public Safety.

  • County Licenses – This is a type of license that is also known as a local or municipal license. Every county or city in North Carolina has different regulations for permits and licensing.

The business licensing regulations and requirements in North Carolina may look confusing and complex. A top North Carolina LLC registered agent like IncParadise offers a specialized licensing service called the “Business License Research Report” service. This is a detailed report containing a list of filing instructions, supporting document requirements, and fees for all business licenses and permits in this state.

8. Open a North Carolina LLC bank account

One of the most challenging tasks of business operation is to manage finances, this includes all types of transactions. The best way to streamline your transactions, both expenses, and revenue, is by opening a business bank account. It is important to note that certain business structures are legally required to have a checking account like if you form a North Carolina LLC. A business bank account will not only make bookkeeping easier but will also make filing taxes simpler. You will also be able to accept credit card payments and enjoy identity and liability protection.

One of the smart alternatives is to open an account online with Cheqly, which is a neo-bank for startups. It is a US business bank account that works like a normal account and can be opened from anywhere in the world. You can receive and make payments efficiently and also be able to use physical & virtual debit cards.

9. Comply with taxes and other regulations

Once you file LLC in NC, you will be required to fulfill all annual maintenance requirements of the state. There are two important annual requirements and they are:

  • Annual Report – After you form a North Carolina LLC, this is one of the most important annual requirements. Each LLC is required to file this online or offline to the North Carolina Secretary of State – Business Registration Division.
  • Taxes – An LLC is a pass-through entity and hence taxes have to be filed for the income of the owners. Apart from this, a limited liability company in North Carolina may have to file other state or local taxes such as the sales and use tax.

Know more about starting an LLC in North Carolina!

There is a process for new business registration and there are several rules, regulations, and compliances to be met to ensure that your company remains active and operational in the state. You may have several questions concerning the different aspects of an LLC in NC. For that reason, we have created a special section of “Frequently Asked Questions” for addressing some of these queries.

Is North Carolina a good state to form an LLC?

The state of North Carolina fosters a pro-business environment and has been ranked amongst the top states for startups and small businesses. Some of the reasons why entrepreneurs prefer to form a North Carolina LLC are:

  • One of the lowest tax rates in the U.S with a Corporate income tax rate of just 2.5%
  • The state has one of the lowest overall business costs
  • It has been ranked number 7 in the list of Best Regulatory Environments by Forbes
  • The state is home to a world-renowned education system and a high-quality talent pool
  • NC provides easy access to both domestic and international markets
  • The Information Technology Industry in the state has been growing at a rapid pace

How do I know if my North Carolina LLC name is available?

To start a limited liability company then it is imperative to follow all NC LLC filing requirements including reserving a business name. Once you have chosen a name, you need to conduct a North Carolina LLC search. This is possible by using the online business entity search offered by the website of the Secretary of State.

How much does an LLC cost in North Carolina?

In order to start a limited-liability company in North Carolina, you will have to submit the Article of Organization. There are two types of costs in the state – initial fixed costs and recurring costs. The LLC registration cost is an initial fixed cost and is $125. The cost of a business name reservation is $30. Similarly, there are other recurring costs like those attached to Annual Reports, Business Licenses, and hiring a North Carolina LLC registered agent among others.

Do I need a business license for my North Carolina LLC?

Yes. A business license is required for making your limited-liability company operational. You may incur a penalty if you conduct business without proper licenses or permits.

Can I set up a single-member LLC in North Carolina?

Yes. You can set up a single-member LLC in the state. The single-member LLCs will be treated the same as sole proprietorship firms.

What taxes does an LLC pay in North Carolina?

If you form a North Carolina LLC, you will need to file taxes annually. The type of tax may vary according to the business activity. For example, sales tax is meant for businesses selling products in the state. Apart from this, being a pass-through entity, an LLC is not required to file corporate taxes. Instead, owners are required to file individual income tax returns. If your company has employees then the LLC will also be required to file employer taxes.

Can I register a foreign LLC in North Carolina?

Yes. You can register and operate a foreign LLC in the state. You will need to obtain a Certificate of Authority pursuant to NC Gen Stat § 57D-7-01 (2020) in order to transact in the state. This process is known as the “Foreign LLC Qualification” and without it; you will not be allowed to conduct business in the state.

How do I dissolve my North Carolina LLC?

After you file an LLC in NC, there can be several reasons for dissolving the company. According to state laws, NC Gen Stat § 57D-6-01 (2020), you will be required to file Articles of Dissolution with the Secretary of State. There is a fee of $30 for dissolution.

Ready to form a North Carolina LLC?

A Limited Liability Company is one of the most popular structures, especially for first-time business owners or entrepreneurs. This type of business structure has its own advantages including limited liability and tax benefits. If you want to file a North Carolina LLC application then IncParadise can assist you with the process of registration.

IncParadise is a highly reputable North Carolina LLC registered agent and we have helped with the registration of more than 10,000 businesses. We also provide several additional services like foreign qualification, EIN assistance, and certificate of good standing in North Carolina among others.

Do you want to register your LLC in North Carolina?

Start a Business in North Carolina

Date: | Category: | Author: developers

Start a Business in North Carolina

One of the top states for starting and running a business in the Southeastern region of the USA is North Carolina. Entrepreneurs prefer to start a business in North Carolina because the state offers overall low business costs and lower tax rates. It’s home to STEM industries and is considered a major trade center. If you choose to incorporate in North Carolina then you can take advantage of the state small business incentive and grant programs as well as other state resources.

Entrepreneur’s guide to forming a business in North Carolina

If you have an idea and want to transform it into a business then North Carolina is the right destination for you. There are several advantages and state benefits available for first-time entrepreneurs. You can register a business in North Carolina in some of the key industries that are considered to be future-focused right from aerospace and transportation to biotechnology and information technology. The state also boasts a diverse and highly skilled workforce.

As a first-time business owner or startup, this guide will provide you with in-depth information on the benefits and advantages of the state, creating business plans, the registration processes for a new company, applying for an EIN, and obtaining licenses among others. It has been specifically created for entrepreneurs and startups, to help them start their small business in NC with ease.

Why do companies prefer to register their business in North Carolina?

North Carolina is one of the few states that have consistently attracted new businesses, entrepreneurs, and diverse talent. The brightest minds in the state along with technologically enabled industrial sectors have been striving hard towards providing innovative solutions that address some of the greatest challenges faced by new and existing companies. If you start a business in North Carolina, the business climate will play a crucial role in helping you start, develop, and grow your company. Let’s look at what makes this state popular amongst business owners.

  • Low business costs – One of the benefits you will enjoy when you register NC business online is the low business costs. This is due to the lower overall cost associated with construction, utilities, business taxes, labor, and logistics. A study by Forbes ranked North Carolina #2 in lowest business costs and is ranked #5 for competitive utility rates.
  • Tax-Friendly Environment – One of the reasons why entrepreneurs prefer to start a business in North Carolina is its tax-friendly environment. The corporate income tax rate in the state is 2.5 percent, which is lower than the rate in Florida (5.5%), Georgia (5.8%), South Carolina (5%), and Virginia (6%). The state also offers a wide variety of tax incentive programs including sales and use tax exemption, as well as payroll tax incentives programs.

As an entrepreneur, if you incorporate in North Carolina then there are several other advantages that your company can benefit from including a wide variety of grant programs and financial aid offered by different state agencies like the NC Department of Commerce Grant and Incentive Programs.

Steps to start a business in North Carolina

The state of North Carolina has one of the best legal & regulatory climates apart from a top-tier workforce and extensive infrastructure. A top North Carolina registered agent like IncParadise can help you form a new business in the state but there are several other areas that you need to focus on prior to launching your company. Let’s take a look at some of the key areas that will ensure that you are able to achieve business objectives.

1. Prepare a North Carolina Business Plan

Every business is different and hence their business plan should focus on the specific activities of the said entity. Normally, a business plan is prepared before you register a business in North Carolina. The plan should ideally be extremely detailed and take into account everything from business objectives to company milestones, financial objectives, marketing plans, and other key areas of management and operations. A good plan will also reveal how sustainable your idea truly is from a short-term and long-term point of view.

There are many advantages to preparing a business plan. It helps you to create the best pricing strategies and prepare for upcoming challenges. A small business in NC may also require funding and hence an informative and research-oriented plan would attract new investors. Let’s look at the important components of a general business plan.

  • Executive summary
  • Company description
  • Analysis of the Industry
  • Competitor analysis
  • Description of Product and services
  • Management structure
  • Operating Plan
  • Company Milestones
  • Sales and Marketing Plan
  • Financial plan and projection

2. Attend Entrepreneurial Training or Development Programs in North Carolina

Systematic entrepreneurship training along with development programs facilitate active as well as passive learning. If you are a first-time entrepreneur planning to start a business in North Carolina then this type of training will help you to identify avenues of economic growth and development and also leverage such avenues. Entrepreneurship training in the state aims at equipping participants or small business owners with the required skills and relevant knowledge.

There are a wide variety of entrepreneurial training or development programs in NC that you can attend or benefit from. You can choose a general entrepreneurship training program or opt for selective programs like the One North Carolina Small Business Program, the Garner Entrepreneurs of Tomorrow (GET) Program, the Shuford Program in Entrepreneurship, and Startup UNC among others.

3. Choose a Business Structure for Your North Carolina Business

There are several important decisions to be made before you register a business in North Carolina. One such decision is that of choosing the right entity structure. The structure plays a key role as the chosen structure will affect the legal liability of a company, its taxation, its ability to get funds, as well as the management, and the overall operations. Whether you choose to incorporate in North Carolina or form an LLC or a sole proprietorship, each structure has a different tax treatment and comes with its own limitations and benefits. The registration or new business formation processes would also be different. The type of business entities you can choose in North Carolina are:

4. Naming Your North Carolina Business

The name of a business is the identity of that very entity. Hence, it is considered one of the most important elements of branding or marketing strategies. The name of a company is connected to everything associated with the entity from its products and services to its credibility and customer services. The single most necessary requirement to start a business in North Carolina is naming your business. You will not be able to register NC business online or offline without a name. Different states have different criteria when it comes to choosing a company name. Similarly, North Carolina has its own naming guidelines and process. Let’s take a look at how to name your entity in NC.

  • The first step is to follow the naming guidelines as specified by the state of North Carolina. The naming guidelines will vary according to the entity structure.

    Example: If you choose to incorporate in North Carolina then the name should contain words like “corporation”, “incorporated”, “limited”, or abbreviations like “corp.”, “inc.”, or “ltd.”

  • The North Carolina General Statutes also state that a business name should be unique and distinguishable. You can check with the Register of Deeds office in the county where you are planning to form your entity. You can also conduct a business name availability check.
  • If your chosen name is available then you will need to reserve the name. You can do this using the form known as the Application to Reserve a Business Entity Name. The form needs to be duly filled and submitted to the Department of the Secretary of State along with a fee of $30. The name can be reserved for 120 days.

5. Choose Your Location for North Carolina Business

One of the details of a new company that is the key to business operations is the location of your business. You need to identify the right location before you register a business in North Carolina. While choosing a location, you need to consider several factors such as proximity to trade routes, logistics infrastructure, customer base or targeted audience, accessibility, market conditions, competition, and the availability of a skilled workforce. Different cities or counties in the state are home to specific industries or industrial sectors and that may prove advantageous.

For example: If you start a small business in NC and if the primary business activity is e-commerce or an online store then the city to choose is Raleigh. The city is currently ranked No. 1 for online businesses due to access to high-speed internet service as well as an environment influenced by technology and research.

Similarly, several other cities in the state are considered good choices for a variety of business activities. The top cities where you can form a new business are:

  • Raleigh
  • Charlotte
  • Winston-Salem
  • Greensboro
  • Catawba County
  • Pineville
  • Morrisville
  • Conover
  • Reidsville
  • Hendersonville

You can also choose a destination based on state incentives programs like the North Carolina Opportunity Zones and Foreign trade zones (FTZ). These zones are spread across the state and provide numerous benefits like tax exemptions. It is also important to check local zoning ordinances as they provide rules and regulations pertaining to city or county licensing, commercial spaces, building codes, local permits, and land use.

6. Register Your North Carolina Business

If you want to start a business in North Carolina then there are certain state-governed processes that must be followed. You have to meet all state requirements and those governed by the 2020 North Carolina General Statutes for businesses. Once you have chosen a structure and reserved a business name, the next step is to apply for registration with the North Carolina Secretary of State.

It is important to note that the business registration process, forms, and fees will vary according to the structure of the business. Let’s look at an example to understand this.

Example: If you want to incorporate in North Carolina then you will have to submit the Articles of Incorporation pursuant to NC Gen Stat § 55-2-02 (2020). There will be a filing fee of $125 and it has to be submitted with the Business Registration Division, North Carolina SOS. Similarly, if you want to form an LLC then you will be required to file a Articles of Organization pursuant to NC Gen Stat § 57D-2-21 (2020). The filing fee will be the same as that of a business corporation.

The most important part of the filing process is the preparation of the Articles of Organization or the Articles of Incorporation. The process to register a business in North Carolina may seem complex as you are required to provide a wide variety of information. This is where a reputable North Carolina registered agent service like IncParadise can assist you. Whether you want to incorporate or form an LLC we can help you to register your company with the state.

Do you want to form a new business in North Carolina?

7. Get Your EIN

Every state in the USA has some form of business tax that every new and existing company has to file. Although North Carolina has a tax-friendly environment, there are some taxes applicable in the state. In order to file taxes, an entity will need a tax ID known as the Employer Identification Number (EIN). The EIN is a unique tax ID number that is issued by the Internal Revenue Service (IRS).

8. Open a Business Bank Account for your North Carolina Business

Operating a company, irrespective of the structure and the business activity, is always a challenging task. When it comes to maintaining a financial record of all transactions, it becomes an even more difficult task. This is why it is always recommended to open a business bank account. This account is different from personal banking in many ways as it provides several features associated with operating a company. Some of the features include digital invoicing, automated bookkeeping, 24/7 online or mobile banking, integration of payment gateways, higher card security, and lines of credit among others.

You can open a business bank account before or after you start a business in North Carolina. Some of the benefits of a business checking account are:

  • Your bank account will help you to track business income as well as expenses
  • It will enable client or vendor payments with ease
  • Enable streamlining of all financial records and tax information of your company
  • A business account creates a professional image and increases credibility
  • Helps in providing clear financial records for auditing purposes

One of the top technology-enabled modern-day banking solutions that you can opt for is Cheqly. You can open a business account online in the USA with Cheqly from just about anywhere in the world. There are many benefits of this digital banking account as it will provide you with physical and virtual debit cards, digital wallets, allow ACH payments, and enable domestic and international wire transfers.

9. Obtain License and Permits

The importance of a business license lies in the fact that it allows your company to operate in a specific location within a city or county. The need to apply for licenses or permits arises after you register a business in North Carolina. Different states in the USA have different business license requirements, regulations, and structures. In North Carolina, there are no generic business licenses and some businesses may require a single license while others may need multiple permits or licenses. Let’s take a look at the business licensing requirements in the state after you register NC business online.

  • North Carolina Certificate of Registration – This is also known as the Sales Tax License. If you start a business in North Carolina where selling products directly or indirectly to consumers is the primary activity, then you will need to register with the Department of Revenue. This license will be applicable even if you are selling online or have an e-commerce store.
  • Regulatory and Occupational License – The second most important form of licensing is the state-issued, regulatory and occupational licenses or permits. There are 950 categories of licenses and encompasses various occupations right from accredited reinsurers to wine shops, transporters, recreational therapists, Business Enterprises Program Operators, CPA firms, and food establishments among others. The issuing authority will vary according to the license being applied for. If you start a small business in NC like a food establishment then the licenses and permits will be issued by the NC Department of Health & Human Services.
  • Municipal or County License – This is a type of local license that will be determined by the city or county your company is based in. If you register a business in North Carolina and the company is operating out of Raleigh then you will need to apply for necessary permits from the City Council. You will also need to obtain the required approval from the Zoning staff.

The type of license or permits required by your business will vary according to the primary business activity and the location of the company. The licensing regulations and requirements can be quite an exhaustive process. This is where our “Business License Research Report” service can provide necessary assistance. This is a detailed report-sharing service offered by IncParadise, a top North Carolina registered agent. The report contains a list of filing instructions, supporting document requirements, and the fees for all business licenses and permits in this state.

10. Register for Taxes

Each state in the USA has its own taxation laws governing all businesses. If you start a business in North Carolina then the taxes applicable will vary according to entity structure and business activity. The different forms of taxes that your company may have to file are corporate income tax, privilege license tax, sales & use tax, franchise tax, and state withholding taxes.

11. Obtain Business Insurance

Business insurance is an important component of running any company successfully. The right form of insurance will help you in covering any costs associated with liability claims and property damage. There are different types of insurance available for businesses such as:

  • Business owner’s policy (BOP) for small businesses
  • Commercial property insurance
  • Professional liability insurance policy
  • General Liability Insurance (GLI)
  • Business Income Insurance
  • Workers’ Compensation Insurance

12. Annual and Ongoing Requirements

Once you start a business in North Carolina or begin operating in the state, it is important to ensure the said company fulfills all state compliances. This is also known as annual maintenance and helps with keeping the company active and current in the records of the North Carolina Secretary of State. Some of the important annual requirements include:

  • The filing of an annual report is pursuant to the North Carolina General Statutes. There is a specific due date for each form of entity and this report has to be filed within the specified date
  • Filing of tax returns like corporate tax or sales & use tax
  • Paying off any payments, penalties, or fees due within sixty days

Some Important Quick Resources for North Carolina Business

Once you have devised a strong business plan, it is time to register a business in North Carolina. There are several details that will need your attention and several processes to undergo to operate the company successfully and for the maintenance of the new business. This is where proper information will provide much-needed guidance. There are various government and private agencies that can provide the necessary information and resources. Let us look at some of the important resources required to register a NC business online.

North Carolina Secretary of State

The office of the North Carolina Secretary of State (SOS) is responsible for overseeing chartering corporations, land records, and administering various commercial regulations. The office also provides valuable resources in areas related to new business formation, submission of annual reports, checking name availability, foreign businesses, and information on programs created for small businesses. You can also download forms to start a business in North Carolina.

  • North Carolina Secretary of State
    2 S Salisbury St,
    Raleigh, NC 27601, USA
    Phone: 919-814-5400
    Email: corpinfo@sosnc.gov
    Website – https://www.sosnc.gov

North Carolina Taxation Department

The taxation department in North Carolina is known as the North Carolina Department of Revenue (NCDOR). This department is primarily responsible for administering the collection of different forms of tax in the state like state income tax, sales tax, gasoline tax, inheritance tax, and beverage tax. You will find information and other resources regarding all types of primary and other taxes applicable in the state. This is helpful especially if you are planning to incorporate in North Carolina.

  • North Carolina Taxation Department
    Department of Revenue
    4701 Atlantic Avenue,
    Suite 118 Raleigh, NC 27604
    Phone: 919-707-0880
    Fax: 919-850-2954
    Website – https://www.ncdor.gov/

North Carolina Labor and Employment Departments

The North Carolina Department of Labor is also known as (NCDOL) and its primary objective is to foster a business and a labor environment that is healthy, safe, fair, and promotes a productive North Carolina. If you register a business in North Carolina then it is important to understand the state labor laws and regulations. This information is available with NCDOL. You will find information on Occupational Safety and Health, Consultation Programs, OSHA standards, and NCDOL online library among others

  • North Carolina Labor and Employment Departments
    North Carolina Department of Labor (NCDOL)
    4 W Edenton Street
    Raleigh, N.C. 27603
    Phone: 1-800-625-2267
    Website – https://www.labor.nc.gov/

North Carolina Department of Commerce

The North Carolina Department of Commerce aims to improve the overall economic well-being of the state and its people. The department works closely with small businesses as well as local, regional, and national organizations to propel community, economic, and workforce development in the state. You can find valuable resources including information on a variety of state grants and performance-based incentive programs created for a small businesses in NC. You will also find information on key industries in the state, business information & reports, and training resources for businesses among others.

North Carolina Industrial Commission

The North Carolina Industrial Commission focuses primarily on the fair and effective administration of the Tort Claims Act and the Workers’ Compensation Act in this state. As a business employing a workforce, the information and resources available on Workers’ Compensation Insurance will be quite helpful.

IncParadise can help you to start a small business in North Carolina!