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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.