Start a North Carolina LLC or Corporation in 12 Steps
- Step 1: Decide on a Business Structure
- Step 2: Pick a Business Name
- Step 3: Register the Business
- Step 4: Obtain Your Federal Employer Identification Number
- Step 5: Open Company Bank and Credit Accounts
- Step 6: Set-up An Accounting System
- Step 7: Obtain Licenses and Permits
- Step 8: Hire Employees (if applicable)
- Step 9: Obtain Business Insurance
- Step 10: Systemize and Organize
- Step 11: Branding and Marketing
- Step 12: Annual and Ongoing Requirements
North Carolina Business Facts and Environment
North Carolina Business Facts
With the lowest corporate income tax in the US and a pro-business legal and regulatory environment, North Carolina has one of the strongest business climates in America and has consistently ranked as one of Forbes’ top 5 Best States for Business for more than a decade. Built on a mostly agricultural economy with tobacco its leading crop, modern-day North Carolina thrives on knowledge-based industries such as aerospace & defense, biotechnology & pharmaceutical, energy, business and finance.
Major Companies in North Carolina
North Carolina serves as headquarters to many major companies including Compass Group USA, Lowe’s, Bank of America, Hanesbrands and Food Lion.
North Carolina Startup Environment
North Carolina has some of the most affordable business costs in the United States with favorable costs on construction, labor, housing and a corporate income tax rate of 2.5%. With its renowned academic environment of higher education and research, North Carolina offers an educated workforce with strong cultural values.
Steps on How to Start a Business in North Carolina
Before starting a business in North Carolina, you will need to complete the following steps.
Step 1: Decide on a Business Structure
There are 3 basic options: a DBA, a Corporation, or an LLC. Click here to learn more about business entities.
- A DBA or “Doing Business As” (also known as a “Fictitious Business Name” or FBN) is not really a separate structure, but just a different name that an individual or partners use as their business name.
- A Corporation is a separate entity (provides liability protection to the owners) that has a structure that includes shareholders, directors and officers. More complex than a DBA but the entity of choice for large companies and startups that intend to raise funding. Some professions are required to choose what is known as a “Professional Corporation” or PC (doctors, lawyers, architects, etc.).
- An LLC or “Limited Liability Company” is a newer type of business that is both a separate entity but provides very easy management (doesn’t require directors or officers) and taxation. Has largely replaced the DBA and Corporation in popularity recently as it provides liability protection but with much less complexity (and taxation) than a Corporation.
Step 2: Pick a Business Name
Choosing a business name is easier said than done – many legal and business problems can arise from choosing the wrong name (you can always change it later but the less times you have to do that, the better). In Step 3 we’ll show you how to search for the name in North Carolina, but we highly recommend you do the following before searching North Carolina state databases:
- Make sure you’ve covered the basics: unique, easy to understand/pronounce (practice saying it out loud: “Thanks for calling XYZ”) and can survive over time (“DVD World” is not timely). Here are some of our tips on business identity including logo and trademarks.
- Search the web for your proposed name. Search Google, Bing and DuckDuckGo as a “first sweep” for any potential conflicts, especially in your state or local jurisdiction. NOTE: If you intend to operate nationally or even internationally it will be even more important that your name be unique. This should cover many cases where a company name is being used but not officially trademarked (see next tip).
- Do a trademark search with the US Patent and Trademark Office (USPTO). This will be a very good indicator if your name will have any conflicts. There’s an art to trademark searches (trademark specialists will charge you handsomely to do a thorough search) but in our experience if you can use Google at a fairly advanced level you can reasonably clear a name yourself.
TIP: search misspellings, plurals, variations of spelling, sound-alikes, and other versions of your chosen name to be sure it’s not already registered.
- Make sure your company name choice is available by searching the North Carolina Secretary of State’s business entity database. Note: Make sure to search variations of spelling, plurals and misspellings
Restrictions on North Carolina Business Name & Business Purpose
Your North Carolina company name should be unique and can’t already be in use by a current North Carolina business. For Corporations, your business name will need to include “Corporation”, “Incorporated” or an abbreviation. Your North Carolina LLC should end with “Limited Liability Company”, LLC or L.L.C.
Step 3: Register the Business
Each state has its own requirements for registering a business. Now that you’ve chosen a business structure and selected your business name, here are the requirements to register your business in North Carolina.
How to form an LLC in North Carolina
- File the LLC Articles of Organization with the North Carolina Secretary of State.
- Once the articles are filed and approved you will then need to properly organize the LLC (this also applies to “1-person LLC’s”) by holding an “Organizational Meeting” which takes contributions from the members, issues Member Certificates, adopts the company Operating Agreement and more.
How to Incorporate in North Carolina
- File the Articles of Incorporation with the North Carolina Secretary of State.
- Hold an “Organizational Meeting” to determine the percentage of ownership for each shareholder as well as resolve to do tasks like open a company bank account, pay back pre-incorporation expenses, elect S-Corporation status and more.
- Corporations can elect S-Corporation status with the IRS by filing IRS Form 2553. Click here to learn more about S-Corporations.
Note: The North Carolina Secretary of State takes 5-6 days to process the paperwork. Rush filing service is completed in 1-2 business days.
TIP: Check our order form to see how long North Carolina is currently taking to process regular and expedited orders.
How to File a DBA in North Carolina
North Carolina DBAs are called Assumed Business Names. These DBAs are filed with the Register of Deeds in each county. You can find the local Register of Deeds office by searching “YOURCOUNTY Register of Deeds”.
- Perform a name search with the North Carolina Secretary of State to ensure your Assumed Business Name is not already in use.
- Complete the Assumed Business Name Certificate.
- The Assumed Business Name Certificate and an application fee of $26 should be returned to your county Register of Deeds.
Considerations when registering a North Carolina business
- Hire a professional Registered Agent. Many people list their home or business address on the Articles of Organization or Incorporation. This can cause issues because it becomes public record (you’ll get lots of junk mail). A professional Registered Agent will provide their address and forward any important documents to you, this is also convenient if you have to move (you don’t have to file forms or pay fees, just update your address with your agent).
Ready to register a business in North Carolina?
MyCompanyWorks can guide you through every step of starting your North Carolina business.
Ready to Start Now? Let Us Do The Work
Sure, you could do all the steps above or you could spend 5-10 minutes on our order form and let us take care of it while you work on more important things.
- Learn more about our LLC and Incorporation system
- Read our verified reviews and 100% Satisfaction Guarantee
- Contact our friendly support team if you have any questions
Step 4: Obtain Your Federal Employer Identification Number
Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLCs and optional for DBA’s (if you don’t have any employees, then it’s required). However, if you are a DBA and don’t obtain an EIN you will be forced to use your Social Security Number on many documents so it’s typically recommended you obtain the EIN to prevent identity theft.
To obtain an EIN you can apply online with the IRS or via IRS Form SS-4.
TIP: We will obtain your EIN for you if we form your company.
Step 5: Open Company Bank and Credit Accounts
To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and inquire about the steps to open a business bank account. Typically you’ll need a) your filed paperwork, b) your EIN, and c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).
Top 5 Major Banks in North Carolina
- BB&T Bank
- Wells Fargo Bank
- First Citizens Bank
- Bank of America
- PNC Bank
Click here to view a list of our recommended banks in our Vendor Network.
TIP: Our business formation service includes a free banking resolution for your use.
Step 6: Set-up An Accounting System
Setup your Accounting and Record-keeping system and learn about the taxes your new company is responsible for paying.
Company documents generally are required to be kept for 3 years, including a list of all owners and addresses, copies of all formation documents, financial statements, annual reports, amendments, or changes to the company. All Tax and Corporate Filings should be kept for at least 3 years. View our “Accounting & Financial Management” section for help with setting up an accounting system and purchasing accounting software.
Review our list of Accountants, Accounting Software, and Bookkeepers in our Vendor Network.
Step 7: Obtain Licenses and Permits
Now that you’ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).
North Carolina does not issue a standard business license. Call Business Link North Carolina at 800-228-8443 or 919-447-7828 to learn more about what type of license your business might require.
TIP: We can help you identify the necessary forms to obtain your business license.
Step 8: Hire Employees (if applicable)
If you intend to hire yourself or others as a full or part-time employee of your company, then you may have to register with the appropriate State Agencies or obtain Workers Compensation Insurance or Unemployment Insurance (or both). View our “Employees & Payroll” section for help with hiring employees and processing payroll.
Review our list of recommended Payroll Providers in our Vendor Network.
Step 9: Obtain Business Insurance
There are many types of insurance for businesses but they are usually packaged as “General Business Insurance” or a “Business Owner’s Policy”. This can cover everything from product liability to company vehicles. A decent policy can run as little as $300/year and offers a great extra level of protection.
Click here to view our list of insurance providers in our Vendor Network.
Step 10: Systemize and Organize
Prepare the business as if someone needed to take it over and run it for you. This means having a method to process orders, pay bills, pay employees, pay taxes, maintain your permits, etc. Basically, try to make the operational aspect of the business as automated and efficient as possible so you can concentrate on growing your business. View our “Manage Your Company” section for help with systemizing and automating your business.
Step 11: Branding and Marketing
Now that you’ve set up the company for success, you need to get the word out. Create a marketing plan for your products and services that targets your ideal customer. View our “Marketing & Sales” section for help for more information.
Step 12: Annual and Ongoing Requirements
DBA: Assumed Business Names do not expire in North Carolina, however,you must file a Certificate of Amendment within sixty (60) days of any change of information provided on the original certificate. Also, any North Carolina Assumed Business Name filed prior to December 1, 2017 will expire on December 1, 2022 and a new certificate must be re-filed.
LLC: You will need to file an Annual Report by April 15 each year after the year your LLC was created. The filing fee is $202.
Corporation: Every year you will be required to file an Annual Report on the 15th day of the fourth month following your Corporation’s fiscal year-end. The filing fee is $20 online and $25 by mail.
Click here to view our MyCompanyWorks Premium™ service which can automate most of your ongoing compliance tasks.
Important North Carolina Contacts
North Carolina Secretary of State
2 South Salisbury Street
Raleigh, NC 27601
919-814-5400
North Carolina Taxation Department
North Carolina Labor and Employment Departments
North Carolina Startup Resources
1. Small Business Administration (SBA) North Carolina District Offices
- SCORE provides mentorship, counseling and advice for new businesses.
3. North Carolina Legal Statutes:
- North Carolina Business Corporation Act – note this is the broad code that includes various other topics including North Carolina General Statutes.
- North Carolina Revised Limited Liability Company Act – the specific act that applies to North Carolina LLC’s.
4. North Carolina Chambers of Commerce
- The North Carolina Chamber of Commerce is a business network and advocacy organization whose chief mission is to promote business interests in the state of North Carolina.
- Charlotte Chamber of Commerce
- Raleigh Chamber of Commerce
- Wilmington Chamber of Commerce
5. North Carolina Business Portal
- The ACCESSNC has a lot of useful information including lists of incentives and business assistance to help you get started.
6. North Carolina Angel Investors
7. North Carolina Business News
8. North Carolina Department of Commerce
9. North Carolina Small Business Association
- The Small Business and Technology Development Center (SBTDC) has helped North Carolina businesses grow and create new jobs since 1984.
10. North Carolina Green Business Program
