Doing Business As or DBA in North Carolina

North Carolina is home to over 994,576 small businesses including sole proprietorships, LLC, and partnerships among others. Whatever the company structure, you will require a business name to register and operate the company. You may choose to use your name (owner’s legal name) like James Walter LLC or use a “Doing Business As” (DBA) name like Walter’s Kitchen & Cafe. If you want to apply for a North Carolina DBA online then it is important to ensure compliance with the requirements as governed by 2020 North Carolina General Statutes, Chapter 66 – Commerce and Business, Article 14A – Assumed Business Name Act. If you are wondering “how do I look up a DBA in NC“, there is a process for this search, but first, it is important to understand when and why a company or an individual should use an assumed name.

What is DBA in North Carolina?

A business name helps define your business and creates an identity amongst the customers, investors, and competitors. There are three types of business names that any company can choose and they are:

• Business owners’ names like Susan Holding Inc.
• Abstract or standard company name like Babbling Brew LLC
• Assumed name or DBA like Jake’s Pie

When do you need a DBA?

A wide variety of businesses can opt for filing a DBA in North Carolina. There are several reasons why a company chooses an assumed name or a fictitious name. The underlying reasons could be many but they are mostly driven by the several benefits that one can leverage when they apply for a North Carolina assumed name certificate. Let’s look at some of the common reasons or benefits:

• Complexity and expenses – One of the reasons for choosing a DBA, especially by sole proprietors is to avoid the complex processes and related expenses. This is because when you file an NC DBA online application, you will be able to use a business name without actually having to create a formal LLC or corporation.
• Operate separate businesses – If you want to operate several businesses, especially an LLC or a corporation then ideally you would be required to incorporate or register each of those companies. This is where filing a DBA in North Carolina is beneficial for creating your company without actually registering a new legal entity.
• The easiest way to choose a name – There are different processes for new businesses including the reservation or registration of a business name, which varies from one state to another. When you file an NC DBA online application, the process becomes quite easy with much less paperwork as opposed to the traditional business name reservation. You can use a DBA to open a business bank account.

Filing DBA in North Carolina for an LLC and Corporation

A DBA (doing business as) is known as an assumed name in the state of North Carolina. If you are planning to form an LLC, a sole proprietorship, or even a corporation, then you will need to apply for a business name reservation or registration. Instead, you can simply apply for a North Carolina DBA online. This assumed name will be the DBA or trade name for the said company. There is a specific process to apply for and obtain a North Carolina assumed name certificate, especially for a business corporation or an LLC. The process and fee will also be different from that of the standard business name reservation process and fee.

Do North Carolina DBA Name Search

If you’ve decided to adopt an assumed name for your LLC or corporation, then you need to ensure the name is compliant with DBA laws as well as other state laws. The question most businesses are faced with is “How do I look up a DBA in NC“, and the answer is simple. All you have to do is conduct a DBA name search. This is also known as an Assumed Business Name Search and is facilitated by the website of the NC Secretary of State. It is important to note that you can apply for a North Carolina DBA online only if the search reveals the availability of the said name or if the name is not in use. You can search using only the name or a mix of several options. The options for conducting a DBA search are:

• Name/Number – If you are wondering “How do I look up a DBA in NC” then you can search using any of the following:
  • Assumed name
  • Name of the owner
  • SOSID (Secretary of State ID) number
• Start date/End date – This is used to check assumed names that are already registered.
• Counties to Search – This is used to look up a DBA in a specific county like Brunswick or Cumberland, or you can opt for an all-county search as well.

Example: Searching by the assumed name is most common for new businesses. If your name is James and you want to conduct a search using the name “James” then it will bring up 3591 records. If you want to search using James in specific counties like Brunswick and Columbus then the search will reveal 84 records. Now, if you search for “James Pharmacy” in all counties then you will find that the said DBA exists. If you change it to “James drugstore” and search again then it shows no records. This means the assumed name is available.

File North Carolina Assumed Name Certificate

Once you conduct a DBA search and if your chosen name is available then the next step is to file the North Carolina assumed name certificate. The 2020 North Carolina General Statutes, Article 14A – Assumed Business Name Act, NC Gen Stat § 66-71.4 (2020) states that if you want to engage in business in North Carolina under an assumed business name, then you will need to register a DBA with the office of the Register of Deeds of the county in which you will be operating your business. This law is applicable for both domestic and foreign companies.

Example: If you want to conduct your business in Wake County, NC then filing a DBA in North Carolina will take place in this county. You will need to file the Assumed Business Name Certificate pursuant to NCGS §66-71.5 with the office of the Wake County Register of Deeds. The fee for filing a DBA in North Carolina is $26.

• Wake County Register of Deeds
  Attention: Recording
  P.O. Box 1897
  Raleigh, NC 27602

Register your North Carolina DBA with ease!

Managing North Carolina DBA

Once you file an NC DBA online application or file an assumed name certificate, then it will ensure that you can conduct your business within the said county or state. Each county in North Carolina has its own rules and regulations pertaining to a DBA or assumed name. These laws are also applicable for a renewal, changing, or canceling of the assumed name in the jurisdiction where the certificate was filed. Let’s look at the various processes applicable for managing North Carolina DBA in the future.

How to renew North Carolina DBA?

Filing a DBA in North Carolina can be done only with the Register of Deeds of the county in which you want to operate your business. There is no requirement for renewal in the counties.

How to change a North Carolina DBA?

After filing a North Carolina assumed name certificate, you may want to make amendments. Amendment to the certificate is governed by NC Gen Stat § 66-71.7 (2020) and should be filed within 60 days after any changes in the information provided in the assumed business name certificate have taken place. The amendment form can be used for changing assumed business names or other purposes like changing the nature of the business or even the street address of the principal place of business. The amendment fee is $26 in most counties. The amendment form may be different for each county.

How to cancel a North Carolina DBA?

Once you have filed the NC DBA online application, you will be able to operate your business under the said assumed name. At any given point in time, if you want to cancel or withdraw the DBA name then it’s possible through a different process. The process is known as a Withdrawal of an assumed business name and is governed by NC Gen Stat § 66-71.8 (2020). You will be required to file Withdrawal of Assumed Name Certificate along with a fee of $26. The application has to be filed with the Register of Deeds in the county your business is based in.

Need Any Assistance in Filing North Carolina DBA?

The process to apply for a North Carolina DBA online requires you to provide complete and accurate information while being compliant with federal trademark laws and county laws. The process of conducting an assumed name search and adhering to county laws can be quite confusing. IncParadise can gladly assist you with this process. We have expertise and knowledge regarding the North Carolina state and county regulations concerning DBAs and new businesses.

Sole Proprietorship in North Carolina

A sole proprietorship business is the easiest entity type that you can establish. The state of North Carolina not only has a pro-business environment but also supports a favorable legal and regulatory climate. Low overall business costs and the availability of qualified talent are also responsible for making this one of the top states for new business. Once you file a sole proprietorship in NC, you will gain access to several state incentive programs that can aid in the long-term growth and expansion of your business.

What is a sole proprietorship in North Carolina?

A sole proprietorship in North Carolina is also known as a sole trader and is considered an unincorporated business. As a result, there will be zero or minimal government regulations, and for this reason is favored by small business owners, individuals, consultants, and anyone seeking self-employment. If you plan to file a sole proprietorship in NC then you will need to consider several details based on the state business laws including preparing a business plan and applying for the necessary licenses and permits. This type of individual entrepreneurship can be formed and operated online, offline, or can be home-based.

Important features of a sole proprietorship in North Carolina

Sole proprietorships are considered to be one of the most common entity structures in the United States and can be operated by a single owner. If you want to know how to start a sole proprietorship in NC then first you will need to identify the advantages and disadvantages of this type of entity structure to help you operate it better. This type of entity structure has several features that can be beneficial to the owner. Let’s take a look at some of the important features.

• Simple and cost-effective – This type of business structure doesn’t require complex paperwork like a corporation, nor do you need to register it with the NC Secretary of State. Since there is no registration process to file a sole proprietorship in NC, there are zero or minimal startup or initial costs.
• Start from anywhere – Another great advantage of a sole proprietorship is that it can be started from anywhere. You don’t have to own, lease, or rent commercial space or a traditional brick & mortar office. You can easily operate it from co-working spaces and even from your residence. This also ensures less capital requirements.
• Simpler tax structure – When you search sole proprietorship in North Carolina taxes, you will find that this entity type has one of the simplest tax structures. You will not be required to file any separate tax returns for your business. Instead, you will need to report the income earned by the company on your personal tax return
• Decision-making – One of the greatest features of a sole proprietorship is that the owner is responsible for making all of the business-related decisions. This ensures that there is no third party or any other internal or external interference, involvement, or influence in the day-to-day operations of the company.
• No sharing of Profits – When you file a sole proprietorship in NC, the profits earned by the company will go to the sole proprietor or the owner. Unlike some of the other entity structures such as corporations and LLCs, the profit or income earned will not be split amongst shareholders, members, or partners.

Are you ready to start a sole proprietorship in North Carolina?

Steps to Start Sole Proprietorship in North Carolina

If you want to start a new business but don’t want any partners or want to remain self-employed, then it is time to file for a sole proprietorship in NC. The state of North Carolina has different requirements for this type of business and as the owner you will be required to fulfill them. You will also need to focus on several other responsibilities for the business like banking accounts, the North Carolina assumed name certificate, and reporting and paying state taxes. Let us take a detailed look into each process that is crucial for the sustenance, successful operations, and growth of the business.

1. Prepare a business plan

If you’re wondering how to start a sole proprietorship in NC then the first step would be to prepare a strong business plan. A business plan is also known as an operational plan that takes into consideration a wide variety of factors like the market, the target audience, the location, and the finances among others. The importance of this type of plan lies in the fact that it will help provide direction for the company to meet its short-term and long-term objectives. If you’ve chosen to start a sole proprietorship in North Carolina then your business plan should include the following:

• Mission Statement (Statement Of Purpose)
• Description of the company or business
• Customer demographics
• Competition
• Products or Services
• Marketing Plan
• Insurance
• Record Keeping
• SWOT Analysis
• Distribution, Promotion, and Pricing
• Financial goals and projections

2. Choose a North Carolina business name

A business name is the identity of the company and the single most important detail for any form of business. If you want to start a sole proprietorship in North Carolina, you will need to choose a unique business name. It is important to carefully consider a name as it will be used in all types of business collateral, banking, domain name, website, and branding. Here are some tips that will help you with choosing the right name for your sole proprietorship:

• Following North Carolina’s naming guidelines is important when choosing a business name
• The state may also have a list of names that you are prohibited from using
• Never choose a name that is similar to that of a competitor
• Keep the name as simple as possible
• The name should be easy to pronounce and spell
• The name you choose should not have any trademark infringement
• Ensure that the business name is web-friendly
• It should be consistent with your product, services, or brand

3. File Assumed business name

There are certain state and legal requirements associated with a sole proprietorship, which you will need to fulfill. One such requirement is that of an assumed name also known as a DBA (Doing Business As). Not every business is required to apply for a DBA. You only need to apply for a North Carolina assumed name certificate if you don’t want to conduct business under your own name. Let’s look at an example to understand how the assumed name works.

For example: If an individual named Walter Betty wants to start a sole proprietorship in North Carolina as a coffee store then can simply use his own name ‘Walter Betty Coffee’. If he wants to name it Walter’s Coffee and wants to do business under this name then he will need to apply for a North Carolina assumed name certificate pursuant to NC Gen Stat § 66-71.2 (2020). After creating this name, he needs to conduct an Assumed Business Name search to check its availability. If the DBA name is available then he can apply for a DBA.

Thinking of starting a sole proprietorship in North Carolina?

4. Get EIN

An Employer Identification Number (EIN) is also known as the Federal Employer Identification Number (FEIN). This unique number is considered to be a valid tax ID number and is assigned to businesses by the Internal Revenue Service (IRS). If you start a sole proprietorship in North Carolina then you will have to file taxes on your personal tax returns. This is possible using a Social Security number (SSN), but there are certain scenarios in which a sole proprietorship firm may be required to apply for and obtain an EIN. Instances in which your firm will have to apply for EIN according to the IRS include:

• If you have hired employees in your sole proprietorship firm
• If you have a Keogh plan (tax-deferred pension plan) or a Solo 401(k) retirement plan
• If you buy or inherit an existing company
• If you change the entity structure from sole proprietorship to LLC or corporation

5. Obtain necessary licenses and permits

Once you start a sole proprietorship in North Carolina, one of the foremost requirements is to acquire a business license. North Carolina doesn’t have a general business license for all businesses but there are industry specific licenses. It is essential for sole proprietors to check state-level requirements as well as county requirements where licensing and permits are concerned. When you search sole proprietorship in North Carolina for licenses, it will reveal occupational permits and professional licenses. You may also require local zoning and building permits. If you feel the process to identify the right business license is complex then our Business License Research Report service can help you. This is a detailed research report that contains a list of filing instructions, supporting document requirements, and fees for all business licenses and permits for your sole proprietorship business in NC.

6. Open a bank account for your North Carolina business

Once you file a sole proprietorship in NC and obtain necessary licenses and permits, you will be able to transact in the state. One problem that many sole proprietors face is the inability to maintain proper accounts. This confusion happens when personal banking accounts are used for business transactions. Therefore, it is very important to keep your personal gain separate from the revenue generated by the company. The importance of a business bank account lies in the fact that it will keep all business finances separate. It will help by keeping accounting records organized thus ensuring that you can file your tax return easily.

7. Report and pay taxes

One of the important facets of how to start a sole proprietorship in NC is filing taxes. This is an annual requirement for all forms of businesses. The taxes for a sole proprietorship firm will be different from that of any other business structure. Since this type of company is operated by an individual, the owner will have to report their income earned using their personal tax return. You will be required to report all income earned during a year using the Individual Estimated Income Tax Form NC-40. The tax rate is flat 4.75% of North Carolina Taxable Income. When you file a sole proprietorship in NC, you may be required to collect state sales taxes if your company is selling goods or products in the state. You can visit the website of North Carolina Department of Revenue (NCDOR) for more information on other applicable taxes.

Ready to Start a Sole Proprietorship Business in North Carolina

A sole proprietorship is one of the easiest business structures to form, and you can establish it quickly due to the minimal documentation requirements. It is considered an unincorporated entity and hence you will not be required to follow any registration processes with the office of the Secretary of State. If you are wondering how to start a sole proprietorship in NC then IncParadise can provide assistance and help you start your company in the state.

Business License in North Carolina

The registration of a company transforms the business into a legal entity but it doesn’t provide the permission to transact. Every business in any state in the USA is required to obtain some form of license or permit that will allow them to transact in a specific state, location, or area. So, if you start a company in North Carolina, you will need to obtain a North Carolina business license.

Who needs a North Carolina business license?

There is a reason why business licenses exist, they happen to play an important role. Licenses ensure the compliance of a business with all requirements related to operations such as the cleanliness of restaurants, the safety of new drugs, and environmental safety among others. A North Carolina business license is required by most businesses operating in the state including home-based companies and small startups. Legal entities such as limited liability companies or corporations will also need to obtain a NC business license or permit.

What business license do I need in North Carolina?

North Carolina is a favorite destination among entrepreneurs due to its pro-business climate. The state has a robust infrastructure and a skilled workforce to meet the needs of a wide variety of industries. You can start a company in this state with ease, but to make it operational you will need proper licenses and permits. A North Carolina business license search will help you to identify the right type of license.

North Carolina Business Licenses for Specific Occupations and Professions

One of the most important types of North Carolina business licenses are those associated with specific professions and occupations. An occupation is any activity undertaken by an individual to earn their livelihood such as teaching, advertising, or lawyers. An occupation can be a profession or a business. Profession refers to an activity that requires qualification, training, and skills like a Certified Paralegal or a Certified Public Accountant (CPA). If you have started a business in a specific industry or occupation then you will need to obtain a NC business license and permits for that occupation as well as a professional license connected to the said occupation. Let’s look at an example to understand this.

Example: If you start a tax accounting firm then you will need to apply for a CPA firm registration, which has to be renewed each year. This is a type of license to operate the firm and the registration is done with the Licensing Section, NC State Board of CPA Examiners. In order to operate this firm, you need to hire Certified Public Accountants (CPAs) or should possess a North Carolina CPA Certificate also known as the Certified Public Accountant (CPA) license. You will have to obtain a NC business license for a CPA from NC Board of Certified Public Accountant Examiners (CPA). The license fee will be $100 and the renewal fee is $60.

Other North Carolina Business Licenses

Apart from the occupation or professional licenses, the state of North Carolina has classified licenses based on the specific business activities and the location of the company. You can conduct a North Carolina business license search using your business activity such as selling products or services. Let’s look at the various other applicable licenses and permits in the state.

Seller’s permit (Certificate of Registration)

The seller’s permit is a type of North Carolina business license that is required by businesses or individuals involved in different sales activities within the state. The activities that determine the need for a sellers permit include:

• If you sell tangible personal property through retail
• Selling specific digital property like digital audiovisual work or a magazine
• Providing taxable services
• Operating a business that involves apparel and linen rental, dry cleaning, and other similar businesses
• Leasing or renting any taxable tangible personal property
• If you provide the ability to rent an accommodation as it generates gross receipts
• Retailers of service contracts
• Imposing admission charges to entertainment activities

Local North Carolina business licensing and permits

One of the important licensing requirements for businesses planning to transact in North Carolina is obtaining proper NC business licenses and permits in the necessary counties and cities. The type of license, applicable fees, and local ordinances will vary according to the city or county the company is based in. You will need to conduct a North Carolina business license search to identify the right permits in your county. Let’s look at an example to understand how this works.

Example: You are planning to start a food establishment or food related business in North Carolina. The physical address of your company is in Carteret County, NC. A retail food service in the county also classified as food service establishments include restaurants, food stands, drink stands, meat markets, and commissaries among others. In order to operate in the county, you will need to complete and submit the Food Service Establishment Application. This detailed application has to be submitted with the Carteret County Health Department, Environmental Health Division. You will also be required to submit a non-refundable plan review fee along with the application. The food service facility should be compliant with the design standards as listed in 15A NCAC 18A.2600.

North Carolina home-based business license

Home-based businesses are becoming quite popular due to many reasons such as low startup costs and lower operational costs. If you are planning to start a work-from-home then it may be subject to some of the North Carolina business laws, as well as state licensing regulations. Most home-based businesses are typically partnership or sole proprietorship firms. The question is what type of NC business license and permits application process will be required for the same. One of the important aspects is that home businesses are categorized under occupational licenses and therefore will depend on the area of expertise. There are certain areas to focus on such as:

• Conduct a North Carolina business license search for occupational and professional licenses
• You should be aware of local zoning regulations and obtain the necessary clearances
• You may require local licenses from the city or county where you are based
• The license required may also vary according to the business activity

Example: If you start a home-based business in Durham County or City of Durham, NC then you will be required to apply for a Home Occupation Permit. Your home-based business should be compliant with the requirements as mentioned in the Home Occupation Summary Regulations, Unified Development Ordinance Section 5.4.4. Similarly, if you start a home-based business in the City of Raleigh then according to the City’s Unified Development Ordinance (UDO) Section 6.7.3.D or Section 6.7.3.E, there are two types of home-based businesses. These are Home Occupation (located within a residential dwelling) and Live-Work (commercial use contained within a residential structure). You will have to apply for a NC business license and permits based on the type of home-based business.

Need any Assistance in Obtaining Your North Carolina Business License?

If you are planning to start a new business in the state of North Carolina then it is important to obtain the necessary licenses and permits in the state and the cities or counties. The type of NC business license and permits you need will vary according to the location of your company, the type of occupation, and the primary activity. The North Carolina business license search, license or permit application, fees, and renewal processes will also vary according to the type of license and city.

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.

• 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.

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

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.

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.

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.

• 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

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.

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.

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

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).

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.

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.

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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).

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.

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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.

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.