Starting an LLC in NC Show
You can start an LLC to operate a business, or you can form an LLC to hold assets (such as real estate, vehicles, boats, or aircraft). There are several steps to starting a Limited Liability Company in North Carolina. We’ll give you the overview in this article. Then when you’re ready to start your LLC, we’ll walk you through the process step-by-step in our free guides. 1. North Carolina LLC NameYour Limited Liability Company name must be unique and distinguishable when compared to all the existing businesses registered in North Carolina. Use the North Carolina Business Entity Search to check whether your business name is already being used by another business registered with the NC Secretary of State Business Registration Division. Limited Liability Company DesignatorYour LLC must have a proper designator at the end of the name. As per North Carolina LLC law, the acceptable designators are:
Your North Carolina LLC name cannot include a designator from a different type of business structure. For example, your LLC name cannot include the words or abbreviations:
2. North Carolina Registered AgentA North Carolina Registered Agent is an individual or business entity who accepts legal documents (called “Service of Process”) that are addressed to your LLC. This includes notice of lawsuits, court hearings, and subpoenas. If you don’t maintain a Registered Agent, the Secretary of State can administratively dissolve your LLC. This means you won’t be able to do business in the state any longer and another business entity can take your business name. You have three options for who can be your Registered Agent in North Carolina.
If your Registered Agent is going to be an individual (you, a friend, or a family member), that individual needs to:
This ensures that the courts and legal system can “serve” someone if needed. LLCU Recommendation: If you need to hire a North Carolina Registered Agent Service, we recommend Northwest Registered Agent ($125 per year). Northwest has been in the business for over 20 years and they have great customer support. Any mail that is sent to your LLC will be scanned and uploaded to your online account. And if you would like to hire a professional service to file your LLC formation paperwork, Northwest can also be your LLC formation service. 3. LLC Articles of Organization & Cover SheetNorth Carolina LLC filing form:
Cover Sheet form:
Note: If you don’t see all the items in the “For which forms” drop down menu, change the first drop down to something else, and then change it back to “Business Registration“. North Carolina LLC filing fee: $125 (one-time filing fee) Methods of filingYou can file an LLC in North Carolina online or by mail. Either way, you must first complete the paper forms (the Articles of Organization and the Cover Sheet). Then you can upload them online or send them to the state by mail. File your North Carolina LLC online
File your North Carolina LLC by mail
North Carolina Secretary of State North Carolina LLC approval times
If you file your North Carolina LLC online, the approval documents listed below will be returned by email. If you file by mail, they’ll be returned by regular mail. After the Secretary of State approves your LLC, you’ll receive back the following:
4. LLC Operating AgreementAn Operating Agreement is where you will list the LLC owners (called LLC Members), as well as how much of the business they own. An Operating Agreement will also spell out how the LLC is taxed, how the business is managed, and how profits are split. Said another way, Operating Agreements are written documents for how to handle disputes and arguments among the Members. They spell out the “bylaws” of how to run your LLC. Operating Agreements can also help maintain your personal liability protection. Internal DocumentUnlike the Articles of Organization, you don’t need to file your Operating Agreement with the North Carolina Secretary of State, IRS, or any other agency. Operating Agreements are “internal legal documents”, meaning you just keep a copy with your business records and make sure all Members have a copy as well. Single-Member LLC & Multi-Member LLCsRegardless of whether you are your LLC’s only Member or if your LLC has more than one Member, it is best practice to have an Operating Agreement on file. This helps keep your assets protected in the event of a lawsuit. And it helps show that you are running the LLC properly. 5. Federal Tax ID Number (EIN)A Federal Tax ID Number is your LLC’s “social security number”. It is used by the IRS to identify your LLC for taxation and reporting purposes. A Federal Tax ID Number is also called:
Why do you need an EIN? Your LLC will need an EIN Number to open an LLC bank account, register for business licenses and permits, and to transact business with other companies. When to apply: Don’t apply for your EIN Number until your LLC in North Carolina is approved by the Secretary of State. If your LLC filing is rejected for some reason, you will be attaching the Federal Tax ID Number to an LLC that doesn’t exist. EINs are free ($0): The IRS does not charge anything for an EIN (although some sites in the industry may lead you to believe otherwise). You can easily apply for an EIN yourself online. How to apply for a North Carolina LLC EIN NumberThere are 3 ways to obtain a Federal Tax ID Number (EIN) from the IRS.
Important: You can only apply for an EIN online if you have an SSN or ITIN. Non-US Resident: Don’t worry if you don’t have an SSN or ITIN. You can still get an EIN from the IRS. You just can’t apply online. Instead, you’ll need to fax Form SS-4 to the IRS. And we have instructions on this page: EIN without SSN. 6. LLC Annual ReportThe first one is due by April 15th of the year following the year your LLC is formed. For example, if your North Carolina LLC was formed on November 15th 2022, your first Annual Report will be due by April 15th 2023. Then it will be due by April 15th 2024, and so on. North Carolina LLC Annual Report Filing Fee: $200 per year LLC University® Recommendation: We recommend the online filing as it’s easier to complete. However, if you’re not very tech-comfortable, then we recommend filing by mail. How to file online:
How to file by mail:
North Carolina Secretary of State How will I know my Annual Report is approved?Once the North Carolina Secretary of State’s office is finished processing your LLC’s filing, you will get back the following items:
The above items will be returned by email if you file online. Or they’ll be returned by regular mail if you file by mail. Is there a penalty for late filings?If you don’t submit your Annual Report within 60 days of the due date, then your LLC may be administratively dissolved and shut down by the North Carolina Secretary of State. 7. Business Licenses and/or PermitsThe specific type of license and/or permits your business may need depends on its location and what industry it is involved in. Contact your local county officials, and North Carolina’s state agencies to determine the specific licenses and/or permits your LLC will need. If your LLC will offer a professional service (medicine, accounting, law, etc.), you must also get a license from the relevant regulatory board. NC Careers keeps a comprehensive directory of professional licenses available in the state: NC Business and Occupational License Database Free one-on-one business consultation: Business Link North Carolina (BLNC) is a free service to help you determine what kind of licenses and/or permits your LLC may need. Need to save time? 8. Federal and State TaxesFederal taxesInstead, they are usually filed with your personal tax returns by listing it on a Schedule C (or a different Schedule depending on how you derive your income). State and local taxesYou have to register with the North Carolina Department of Revenue and with the municipality (county, city, town, etc.) where your LLC is located for tax purposes. You may also need to register for sales tax at the local level. LLCU Recommendation: Determining your federal, state, and local taxes can be challenging. And if done improperly, it can negatively affect your LLC. So we recommend speaking with a few accountants after you form your LLC in North Carolina. Check out our guide on how to find an accountant, or you can do a search using Thumbtack. 9. LLC Bank AccountAfter getting your LLC’s EIN number, you can open a separate bank account for your LLC in North Carolina. Why should I get an LLC bank account?Having an LLC bank account and a personal bank account makes your accounting life much easier. It also helps protect your assets in case your LLC gets sued. One of the common reasons a Limited Liability Company can lose its liability protection is through mixing personal accounts with business accounts. This is called “commingling of assets”. Getting a separate checking account for your LLC helps prevent your business assets from mixing with your personal ones. Said another way, a separate checking account helps your LLC keep its liability protection by preventing the commingling of your personal and business assets. Debit card: The bank will give you a debit card when you open the account. Credit card: You can also get a business credit card to earn points, miles, and other rewards. What do I need to get a business bank account?You will need the following items needed to open a bank account for your LLC:
Banks may require other documents before you can open an account, but usually the items listed above are enough. Just to be safe though, we recommend calling the bank ahead of time to double-check. LLC banking feesWe recommend calling a handful of banks in North Carolina close to where you do business. Ask them about their “simplest form of business checking account” and ask what the monthly maintenance fees are. A lot of banks in North Carolina charge monthly fees, but about 25% or so do not. We recommend speaking to about 5-6 banks in order to find free business checking. North Carolina State AgenciesNorth Carolina Secretary of StateNorth Carolina Secretary of State:
Business Registration Division North Carolina Department of RevenueNorth Carolina Department of Revenue How to Get an LLC in North Carolina FAQsHow much does it cost to start an LLC in North Carolina?That said, you may also need to pay for municipal or industry-specific licenses and permits, or get a state-level sales tax permit. The costs of business licenses vary widely by municipality. Reach out to your local municipality if you have questions about your LLC’s unique needs. Other items you’ll need – like an EIN for your LLC – are free. LLC Ongoing CostsLLCs also have ongoing costs, like the Annual Report. Starting the year after you form your LLC, you must submit this annual paperwork to keep your LLC’s information up-to-date with the state. It costs $200 to file this form each year. Depending on your LLC’s specific business industry, location, and activities, you may also need to pay annual fees for licenses or permits. Your local municipality should be able to answer questions about any renewal fees when you request any initial licenses. TaxesWe also recommend hiring an accountant to handle your LLC’s business tax accounts and bookkeeping. Tip: You can write off the cost of an accountant for business tax preparation on your taxes. Foreign LLCIf you have an LLC formed in another state, but you want to conduct business in North Carolina, you’ll need to register that out-of-state LLC in NC and pay the associated filing fee. This is known as a Foreign LLC registration. You can find Foreign LLC fees on this page: Foreign LLC fees by state. How long does it take for an LLC to be approved in NC?How long it takes to get an LLC in NC depends on how you submit your North Carolina Articles of Organization to the NC Secretary of State. If you submit the form online, it will be approved in 7-10 business days. And you can download your documents as soon as your filing is approved. If you submit the form by mail, it will take 10-15 business days for the state to process your filing. So it will be about 3-4 weeks total before you receive the approval documents back in the mail. What are the benefits of an LLC in North Carolina?There are 2 main benefits of having an LLC in North Carolina: personal asset protection and LLC pass-through taxation. The first benefit is protecting your assets. Meaning, if your business is sued, your personal assets – like your home, cars, and bank accounts – are protected. This protection applies to all LLC owners (called LLC Members). It doesn’t matter if you have a Single-Member LLC or Multi-Member LLC. All of the LLC Members are protected from the business’s debts and liabilities. This type of protection wouldn’t apply if you operate as a Sole Proprietorship or Partnership. With an informal business structure (like a Sole Proprietorship or Partnership), the business owner isn’t protected in the event of a lawsuit. For that reason, an LLC as a business entity is a much more common business structure than a Sole Proprietorship or Partnership. Another benefit is LLC pass-through taxation. Can I be my own Registered Agent in NC?Yes. As per North Carolina law, you can be your own Registered Agent in NC if you are a resident of the state and you have a physical street address. What is needed for an LLC in North Carolina?You can learn how to form a North Carolina LLC yourself by following the instructions in our North Carolina LLC Articles of Organization guide. We break down the entire process for you, step-by-step.
Founder & Educator, LLC University® Matt Horwitz has been the leading expert on LLC education for the past decade. He founded LLC University in 2010 after realizing people needed simple and actionable instructions to start an LLC that other companies weren't offering. He's cited by Entrepreneur Magazine, Yahoo Finance, and the US Chamber of Commerce, and was featured by CNBC and InventRight. Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University. Does an LLC have to file a tax return in North Carolina?If an LLC is treated as a partnership or is disregarded as an entity separate from its owner for federal income tax purposes, the corporate member is required to file a North Carolina corporate income and franchise tax return even if it has no other activities in this State.
How do I file a single member LLC in NC?Protect Your Business. Choose a name for your North Carolina LLC.. Appoint a registered agent for your LLC.. File Articles of Organization.. Prepare an operating agreement for your North Carolina LLC.. Get an EIN & comply with tax & other regulatory requirements.. File annual reports with the North Carolina Secretary of State.. Do I have to file an annual report for my LLC in NC?Each Business Corporation, Limited Liability Company, Limited Liability Partnership and Limited Liability Limited Partnership is required to file an annual report with the Secretary of State.
How are LLC taxed in North Carolina?In North Carolina, the corporate tax is a flat 5% of taxable income. In addition, North Carolina assesses a so-called corporation franchise tax. Your LLC may also be subject to this tax. Both taxes are payable to the state's Department of Revenue (DOR).
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North carolina single member llc tax filing requirements
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