To start an LLC in North Carolina, you file Articles of Organization with the Secretary of State and pay a $125 filing fee. The process can be completed online in a single sitting, though a few preparation steps beforehand will save you time. Here’s everything you need to do, from choosing a name to getting your tax accounts set up.
Choose a Name for Your LLC
Your LLC name must include one of the following designators: “limited liability company,” “LLC,” “L.L.C.,” “ltd. liability co.,” “limited liability co.,” or “ltd. liability company.” North Carolina law requires this so the public can identify your business structure.
The name also has to be distinguishable from every other business entity already on file with the Secretary of State, including corporations, other LLCs, limited partnerships, and registered names. You can check availability for free using the business name search tool on the Secretary of State’s website. If the name you want is already taken, you have two options: pick a different name, or get written consent from the existing business along with their agreement to change their own name.
Your name cannot imply that the LLC is organized for a purpose it isn’t actually authorized to pursue. For example, you can’t include “bank” or “insurance” in the name unless you hold the appropriate licenses. If you find an available name but aren’t ready to file yet, you can reserve it for 120 days by submitting a name reservation application to the Secretary of State.
Appoint a Registered Agent
Every North Carolina LLC must have a registered agent with a physical street address in the state (no P.O. boxes). The registered agent is the person or company designated to receive legal documents and official state correspondence on behalf of your LLC.
You can serve as your own registered agent if you’re a North Carolina resident and your business office is at the registered office address. Alternatively, you can appoint any domestic or foreign corporation or LLC authorized to do business in the state, as long as its business office matches the registered office address. Commercial registered agent services typically charge $50 to $300 per year if you’d rather not use your home address or need someone reliably available during business hours.
File Articles of Organization
The Articles of Organization is the document that officially creates your LLC. You file it with the North Carolina Secretary of State, either online or by mail. Online filing is faster and generally processed within a few business days, while mailed filings can take longer.
The filing fee is $125. In the Articles, you’ll provide:
- LLC name with the required designator
- Registered agent name and office address in North Carolina
- Principal office address of the LLC
- Name and address of each organizer (the person filing the paperwork)
- Whether the LLC is member-managed or manager-managed
A member-managed LLC means all owners participate in running the business. A manager-managed LLC designates one or more specific people (who may or may not be owners) to handle day-to-day operations. Most small LLCs with a few hands-on owners choose member-managed.
Create an Operating Agreement
North Carolina doesn’t require you to file an operating agreement with the state, but you should have one. This internal document spells out how your LLC will be run: how profits and losses are divided, how decisions get made, what happens if a member wants to leave, and how disputes are resolved.
Without an operating agreement, your LLC defaults to the rules in North Carolina’s LLC Act, which may not match what you and your co-owners actually intended. Even single-member LLCs benefit from an operating agreement because it reinforces the legal separation between you and the business, which is the whole point of forming an LLC in the first place. Banks often ask for a copy when you open a business account.
Get an EIN
An Employer Identification Number (EIN) is a federal tax ID for your business, issued by the IRS at no cost. You need one if your LLC has more than one member, if you plan to hire employees, or if you want a business bank account (most banks require it). Even single-member LLCs with no employees often get an EIN to avoid using a personal Social Security number on business forms.
You can apply online at irs.gov and receive your EIN immediately. The application takes about ten minutes.
Register for State Taxes
Depending on what your LLC does, you may need to register with the North Carolina Department of Revenue. The state offers an online business registration portal where you can sign up for income tax withholding, sales and use tax, and other applicable tax accounts. This replaces the older paper Form NC-BR.
If your LLC sells taxable goods or certain services, you’ll need a sales and use tax account. If you hire employees, you’ll need to register for income tax withholding and also set up an unemployment insurance account with the NC Division of Employment Security. Not every LLC needs all of these, so your registrations depend on your specific business activities.
Licenses and Permits
North Carolina has no single general business license that covers all activities. Some businesses need multiple state licenses, while others need none at all. The type of work you do determines what’s required. Certain professions and industries are also subject to state privilege license taxes, which are separate from any professional licensing requirements.
The North Carolina Business and Occupational License Database (NCBOLD) lists every business license, professional license, and privilege license the state requires. Search it by your industry or business type to see what applies to you. You may also need local permits or zoning approval from your city or county, so check with your local government offices as well.
Open a Business Bank Account
Once you have your filed Articles of Organization and your EIN, open a dedicated bank account for your LLC. Keeping business and personal finances separate is essential for maintaining the liability protection your LLC provides. If you mix the two, a court could decide the LLC is just an extension of you personally, which defeats the purpose of having one.
Most banks will ask for your Articles of Organization, EIN confirmation letter, operating agreement, and a government-issued photo ID. Some banks also require a certificate of organization or good standing from the Secretary of State.
File Your Annual Report
North Carolina requires every LLC to file an annual report with the Secretary of State. The report is due by April 15 each year and costs $200. You can file it online through the Secretary of State’s website. The annual report updates the state on your LLC’s current address, registered agent, and management details. Missing the deadline can result in administrative dissolution of your LLC, meaning the state revokes its active status.