Moving your business to North Carolina

Introduction – Why North Carolina?

If your business is ready for expansion and growth, or you are planning to launch a new business, then choosing a location is very important. Selecting the right location depends on several factors including taxes, customer segment, infrastructural support, logistics, competition, import and export, cost-effectiveness, and state small business incentives. North Carolina offers support programs that are attractive to domestic and foreign entities, as well as for relocating a business to North Carolina. Today, NC is home to several top companies including Bank of America, Honeywell, Lowe’s, Truist Financial, and Duke Energy among others. There are many ways to move your company to this state including entity domestication in North Carolina, but first let us identify the numerous benefits this state has to offer.

Favorable business climate

One of the biggest reasons for moving your business to North Carolina is the favorable business climate. North Carolina is ranked #1 on the list of top states for business, as well as states with the best business climate. Some of the reasons for this top ranking are:

• The state has one of the lowest corporate income tax rates
• It has one of the lowest overall business costs
• The construction costs in the metro areas of the state are 15 percent lower than in other states
• The legal climate and regulatory environment is also considered to be extremely favorable
• The state offers an unparalleled quality of life
• North Carolina is centrally located in the East-Coast region of the USA

Excellent infrastructure

The overall business climate in North Carolina is driven by several other smaller factors including infrastructure. The state’s public and commercial infrastructure have been growing at a steady pace making it favorable for relocating an LLC or moving a corporation to North Carolina. The state is home to 4 major international airports and 2 seaports that enable trade. It’s also home to the largest consolidated rail system and the Second-largest state-owned highway system in the USA, thus providing transportation advantages to businesses and their workforce.

Quality workforce and education

A good education is one of the main driving factors of growth and expansion for any company because it creates competent employees and a strong workforce. Today, North Carolina is considered to be a high-skill, knowledge-based economy driven by innovation and technology. This type of economy also demands a workforce that is adaptable and skill oriented. Hence, they emphasize quite a bit on science, technology, engineering and math (STEM) education. Relocating a business to North Carolina means that your company will have access to a strong, skilled, and professional workforce. This is due to several of the top local educational institutions like The University of North Carolina, Wake Forest University, and Winston-Salem State University among others. The state also has a workforce infrastructure for promoting training and education continuation programs to help employees learn on the job.

Business incentives and assistance

North Carolina has several kinds of assistance and support programs established for small businesses and medium-sized enterprises. Amongst them are the performance-based incentive programs that have been created to help entrepreneurs with relocating a corporation or moving an LLC to North Carolina. These programs also help lighten the overall tax burden and lower the initial costs for the entity. Some of the top business incentive and assistance programs in the state are:

• Job Development Investment Grant (JDIG)
• One North Carolina Fund (OneNC)
• Rural Division, Building Reuse Program
• Community Development Block Grant, Economic Development Program
• Public Infrastructure Funds
• Historic Preservation Tax Credit
• Sales and Use Tax Exemptions and Refunds
• Utility Account Grants
• Customized Training Program
• City & County Grants
• New Market Tax Credit program

Steps to Move a Corporation to North Carolina

If you are thinking of moving your business to North Carolina then there are many benefits that the state has to offer from infrastructure to business development programs. When moving your business, you may have several questions such as, “Does North Carolina allow domestication, and what is the applicable process for relocating a business or corporation?” There are primarily two options for moving your corporation to this state, so let us look at these options in detail.

Register as a foreign corporation

The first option for relocating a business to North Carolina is registering it as a foreign company. This is an option for owners who want to operate their corporation in their home state (state of incorporation) as well as in other states like North Carolina. The process for moving a corporation to North Carolina is through a foreign qualification. The process is governed by the 2020 North Carolina General Statutes, Chapter 55, Article 15. The process for foreign qualification is as follows:

• Designate a registered agent in North Carolina for handling service of process, pursuant to NC Gen Stat § 55D-30 (2020)
• If your existing name is not available through the name availability search, then you will be required to register a fictitious name pursuant to NC Gen Stat § 55D-22 (2020)
• File the Applications for a Certificate of Authority pursuant to NC Gen Stat § 55-15-03 (2020)
• You will also need to submit a Certificate of Existence (Certificate of Good Standing) issued by the home state or state of incorporation

Do you want to start a foreign corporation in North Carolina?

Dissolve a home Corporation and establish a new Corporation in North Carolina

The second option for moving a corporation to North Carolina is through dissolution. This involves dissolving your company in your home state, then going through the process of domestic incorporation in North Carolina. Moving your business to North Carolina will require you to follow the laws and process of dissolution of the home state. The process of dissolution will also vary according to the state and may involve voluntary, judicial, and administrative dissolution. Some general procedures are applicable in all states including:

• Approval of dissolution of a corporation by incorporators, directors, or shareholders
• Filing Articles of dissolution in the home state
• File any federal, state, and local taxes and claims outstanding
• Publication of notice of dissolution if applicable
• Wind up all affairs in the home state such as canceling business licenses and permits

• Appoint a registered agent in North Carolina for service of process
• Identify and reserve a business name using the Application to Reserve a Business Entity Name
• File Articles of Incorporation pursuant to NC Gen Stat § 55-2-02 (2020) along with the appropriate fee
• Prepare bylaws for the North Carolina Corporation
• Apply for business licenses and permits

Incorporate in North Carolina with ease!

Steps to Move an LLC to North Carolina

If you’re thinking of relocating a business to North Carolina then you can benefit from state support programs including small business incentives and grant programs to lower taxes and gain access to the availability of a skilled workforce. You may have certain questions regarding relocation like, “Does North Carolina allow domestication, and what is the process for moving an LLC?” There are two options available and each option has its own process, laws, and requirements. Let us look at each of the options in detail.

Register as a foreign LLC

The first option for moving an LLC to North Carolina is to register an existing entity as a foreign LLC. This process is also known as foreign qualification and it works best for business owners who are thinking of expanding their business to this state while remaining operational in their home state. Relocating a business to North Carolina through foreign qualification will require several steps. This type of entity relocation is governed by 2020 North Carolina General Statutes, Chapter 57D – North Carolina Limited Liability Company Act, Article 7 – Foreign LLCs.

• Hire and maintain a registered agent in North Carolina for handling service of process pursuant to NC Gen Stat § 57D-7-06 (2020)
• You can keep the existing name of your foreign LLC only if it is available. If the said name is unavailable then you can choose a DBA by filing for an assumed name certificate.
• File the Certificate of Authority to transfer an LLC to NC through foreign qualification pursuant to NC Gen Stat § 57D-7-03 (2020)
• Submit a Certificate of Existence also known as a Certificate of Good Standing issued by the home state

Apply for LLC foreign qualification in North Carolina

Dissolve a home LLC and form a new LLC in North Carolina

The second option for moving an LLC to North Carolina involves dissolving the home state LLC and registering the domestic limited liability company in this state. The rules for dissolution are governed by the LLC Act., of the state where it was initially formed. Some finer points of dissolution will remain the same in all states like the approval of a dissolution and the filing of certificates or articles of dissolution. It’s important to note that an LLC can be dissolved either voluntarily or involuntarily. The process for moving your business to North Carolina through a dissolution will involve the following steps:

• Approval of dissolution of an LLC through unanimous member consent
• Filing Articles of dissolution in the home state
• File any outstanding claims as well as federal, state, and local taxes
• Publish a notice of dissolution if applicable
• Cancel business licenses and permits

• Appoint a registered agent in North Carolina to handle service of process
• Conduct an LLC name availability search and reserve a business name pursuant to NC Gen Stat §55D-23 (2020)
• File Articles of Organization pursuant to NC Gen Stat § 57D-2-21 (2020) along with the appropriate fee
• Prepare the North Carolina LLC operating agreement
• Apply for the appropriate business licenses and permits

Register your LLC in North Carolina Today!

Move Your Business to North Carolina with IncParadise

IncParadise is one of the top registered agent service providers in North Carolina. We provide a variety of services to fulfill different business requirements. We can help you with the process of relocating an LLC or moving a corporation to North Carolina by facilitating the paperwork for dissolution in your home state, foreign qualification, and new business registration in NC.