It’s easy to form an LLC in North Carolina online yourself. Just follow these steps:
- Name Your LLC
- Choose a Registered Agent
- File the NC Articles of Organization
- Create an LLC Operating Agreement
- Get an EIN
- File a BOI Report
Or, use a professional service:
Tailor Brands ($0 + State Fees)
Starting an LLC in North Carolina is Easy
You can form a North Carolina LLC online by registering the Articles of Organization with the Secretary of State. The cost to start an LLC in North Carolina is $125.
Follow our How to Start an LLC in North Carolina guide below to get started.
For more information on how to form an LLC in any state, visit our How to Start an LLC guide.
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Get StartedStep 1: Create A Name For Your North Carolina LLC
Before you register your North Carolina LLC, you’ll need to come up with a name. Your business name needs to be catchy for branding purposes and legitimate for legal purposes.
Naming Your LLC
First, brainstorm some possibilities. Use our LLC name generator to get the ideas flowing.
Next, make sure your name meets North Carolina guidelines:
- it contains the words limited liability company, limited company, or the abbreviation LLC or L.L.C.
- it doesn’t contain restricted words or phrases (these often include words like bank, attorney, and university) without approval
- it’s distinguishable from any other entity or trade name registered in North Carolina
- full list of North Carolina naming guidelines
Next, do a North Carolina LLC name search with the Department of Licensing and Regulatory Affairs to find out if your name is available in North Carolina.
If your business name is available and meets guidelines, you’ll be able to register it when you file your North Carolina Articles of Organization with the Secretary of State.
Is the URL available? Before you commit 100% to a name, check to see if there’s a good web domain available.
We recommend buying your domain right away because even if launching a business website isn’t on your radar right now, it will be soon.
Using a North Carolina Assumed Business Name (DBA)
A North Carolina DBA (doing business as), also known as an assumed business name, is any registered name that a business operates under that isn’t its legal business name. An assumed business name can be used by any type of business, including a sole proprietorship, partnership, or limited liability company (LLC).
Learn how to get a DBA in our North Carolina DBA guide.
Step 2: Appoint A North Carolina Registered Agent
When you file your Articles of Organization, you’ll need to list a registered agent. A registered agent’s job is to accept legal documents like service of process and tax notices for your LLC.
Your registered agent can be a person or a registered agent service. You can act as your own registered agent, but many business owners choose to use a registered agent service.
Here are a few things to think about before you decide to act as your own registered agent:
- You’ll need to be available during normal (9 am – 5 pm) business hours at the address you provide
- If you run your business from home, you’ll have to make your personal address public
- You could be served with a lawsuit in front of your family or coworkers
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Northwest offers a free year of registered agent services when you form your North Carolina LLC ($29 plus state fees) with them.
Get StartedStep 3: File the North Carolina Articles Of Organization
It’s time to officially form your LLC by filing your Articles of Organization with the North Carolina Secretary of State.
You can file online with the Secretary of State or fill out a hard copy of North Carolina Form L-01 and mail it in or upload it as a pdf to the Secretary of State. The filing fee is $125.
You’ll need to know the following information to complete each Article:
- Entity Name and Address
- Organizers
- Registered Agent Name and Registered Office Address
- Effective Date
For more detailed help with completing the form, visit our North Carolina Articles of Organization guide.
Mail Your Articles of Organization:
Send the form and payment (payable to the Secretary of State) to:
The Secretary of State Business Registration Division
P.O. Box 29622
Raleigh, NC 27626
How long does it take to get a North Carolina LLC approved? Processing time is 2 weeks, but you can expedite this for an additional fee.
Step 4 : Create A North Carolina LLC Operating Agreement
Creating a North Carolina LLC operating agreement is the only way for you and your members to fully define your roles and lock down your LLC’s management and ownership structure. Having an operating agreement in place will also give you all something to return to if a dispute or lawsuit arises.
Your operating agreement should outline the following:
- each member’s responsibilities
- how new members will be admitted
- how existing members may transfer or terminate their membership
- how profits and dividends are to be distributed
From there, you can add as many provisions as you want, provided they are not in conflict with North Carolina business law.
To learn more, read our What Is an LLC Operating Agreement guide. You can also download a template or create a custom Free Operating Agreement using our tool on How to Start an LLC. No credit card required, ever.
Step 5: Get an EIN
An Employer Identification Number (EIN) is like a Social Security number (SSN) for your company. The IRS and the state of North Carolina will use this number to track your business activity.
Your EIN will come in handy when it’s time to:
- Open a business bank account
- File Federal and State taxes
- Hire employees
The best way to get an EIN for your LLC in North Carolina is by using the free online application on the IRS website.
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Best LLC ServicesStep 6: File a Beneficial Ownership Information Report
When forming a North Carolina LLC, one of the important steps is to complete the Beneficial Ownership Information (BOI) Report with the Financial Crimes Enforcement Network (FinCEN).
This report — also known as the FinCEN BOI report — is designed to combat money laundering, terrorist financing, and other illicit activities by requiring LLCs to disclose information about their beneficial owners.
This is free to file through the FinCEN website.
New LLCs must complete this filing within 90 days of formation. Existing LLCs must file before January 1, 2025.
Failure to complete this filing requirement will result in a $500 per day fine.
Steps After Forming an LLC in North Carolina
After forming your North Carolina LLC, it’s important to:
Open A Business Bank Account
A business bank account helps separate personal expenses and company expenses, which is required to maintain your North Carolina LLC’s corporate veil. A corporate veil protects your personal assets from creditors in potential lawsuits against your LLC or Business.
Learn more by reading this guide to Banking for Entrepreneurs. For a multi-member LLC, you’ll also want to set up capital accounts for LLC members. We also recommend checking out our review of the best business bank accounts.
Get A Business Credit Card
A business credit card will help separate personal and business expenses while building your company’s credit history. A strong credit history will be useful for raising capital in the form of venture capital, angel investment, or small business loans.
Set Up Business Accounting
Hiring a business accountant is one of the best ways to ensure you’re taking advantage of LLC tax benefits; possibly saving you and your business thousands of dollars per year.
When forming an LLC in North Carolina, it’s a good idea to start a relationship with a business accountant as soon as you start your business to help set your company up for success.
Get Business Insurance
Business insurance helps manage risk. The most common forms of business insurance are general liability, professional liability, and workers’ compensation.
Find out the real cost of getting insurance for your business. Get a free quote or call 855-965-3168.
Keep Your Company Compliant
Research North Carolina Business Licenses and Permits
To operate an LLC in North Carolina, you will need to comply with federal, state, and local government regulations such as health permits, building permits, and signage permits.
Business licensing and permit requirements vary from state to state. To get started, visit our How to Get a Business License in North Carolina guide. To help facilitate this process, you can also utilize a business license service.
File Your North Carolina LLC Annual Report
In North Carolina, all LLCs must file an annual report with the Secretary of State each year by April 15. This can be done online or by printing a pre-populated report to file by mail. The filing fee is $200.
Understand North Carolina State Tax Requirements
In general, North Carolina businesses that sell physical products must register for a seller’s permit with the North Carolina Department of Revenue. Visit our North Carolina Sales Tax guide to learn more about seller’s permits and North Carolina sales tax.
Additionally, if you have employees in North Carolina, you will need to register for unemployment insurance tax through the North Carolina Division of Employment Security website as well as sign up for employee withholding tax through the North Carolina Department of Revenue website.
Understand Your North Carolina LLC’s Federal Tax Requirements
Most North Carolina LLCs will need to report their income to the Internal Revenue Service (IRS) each year using Form 1065: Partnership Return (multi-member LLCs) or Form 1040 – Schedule C (single-member LLCs).
How you pay yourself will affect your federal taxes. Visit our guide to learn more about how to pay yourself from your LLC.
Know Your North Carolina LLC’s Federal Tax Election Options
Pass-through taxation entails a business’s profits passing through to the LLC member’s individual tax returns. Like a sole proprietorship, an LLC is taxed as a pass-through entity, also known as a disregarded entity.
Once this process is completed and after any tax-deductible expenses are taken out, the LLC members pay self-employment taxes and income tax on their portion of the business income.
Alternatively, North Carolina LLCs can choose to elect to be taxed as an S corporation (S corp) or C corporation (C corp). If S corporation tax status is elected, LLC members can be taxed as employees of the business, potentially reducing tax burden.
More LLC Resources
- North Carolina Foreign LLCs: Forming a foreign LLC allows your company to operate as one entity in multiple states. Download the North Carolina foreign LLC form to get started.
- North Carolina Certificate of Good Standing: A certificate of good standing verifies that your LLC was legally formed. To order, follow our North Carolina certificate of good standing guide.
- Dissolving a North Carolina LLC: If you are ready to dissolve your LLC, follow the steps in our North Carolina LLC Dissolution Guide.
- LLC Legal Forms: TRUiC offers a number of free LLC legal forms including operating agreements, LLC resolutions, and hiring documents.
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