How to Register a Business in North Carolina

aerial photography of mountain under blue and white sky

Source: Unsplash

TLDR

North Carolina’s highly educated workforce and robust life sciences industry make an attractive environment for founders.
Before registering your startup, it’s a good idea to plan ahead, for example, researching the market and potential competitors, map out your financing, plan for operations and personnel, and create a business plan. North Carolina provides various resources to help you start a business through its Business Creation Wizard, helping you identify what resources you’ll need as you launch your startup.
In addition to creating a business plan, you must also determine your organization's legal ownership structure. Popular structures include sole proprietorships, general partnerships, limited partnerships, limited liability companies (LLCs), C-corporations, and S-corporations.
When you’re ready to register your startup, depending upon your chosen business structure, North Carolina requires you to choose a unique business name, differing from any other registered businesses in the state.
You’ll also need to select and continuously maintain a registered agent who is the designated recipient of any legal and tax documentation on behalf of your startup.
Depending upon your chosen business structure, you’ll need to register with the North Carolina Secretary of State before commencing operations in the state. You may file your formation forms by US mail or online through North Carolina’s online portal.
With online filing options, you can register your North Carolina startup in as little as a few hours. However, if you mail in your registration forms instead, you may have to wait a few days for your startup to be up and running officially.
Depending upon your chosen entity for your startup, you will have filing fees due when registering your company. For example, if you register as a corporation or an LLC, you’ll pay a filing fee of $125.
In North Carolina, if you are a woman-owned business, you have access to several certificate programs and resources, such as the Minority Business Enterprise/Women Business Enterprise (MBE/WBE) Program and the Office of Women’s Business Ownership, part of the U.S. Small Business Administration.

Home to the Cape Hatteras, the Outer Banks, and part of the Great Smoky Mountains, North Carolina is fueling entrepreneurial and startup success. Between top universities, such as Duke University, NC State University, and the University of North Carolina at Chapel Hill and the technology and science emanating from the Research Triangle Park region, North Carolina’s highly educated workforce and robust life sciences industry make an attractive environment for founders.

North Carolina is also small business-friendly, with over 934,000 small businesses, employing 1.7 million people, according to the U.S. Small Business Association (SBA). Top small business industries include professional, scientific, and technical services; construction; and real estate, rental, and leasing.

As a startup founder, if you consider registering your business in North Carolina, this article will walk you through what you need to know.

How to Register a Business in North Carolina

When you register your startup in North Carolina, you'll need to satisfy several legal requirements to register your business correctly. However, before registering your startup, it’s a good idea to plan ahead, for example, researching the market and potential competitors, mapping out your financing, planning for operations and personnel, and creating a business plan. North Carolina provides various resources to help you start a business through its Business Creation Wizard, helping you identify what resources you’ll need as you launch your startup.

The creation of a business plan is critical to your startup's growth. Think of it as the foundation of the house you’re building. In drafting your business plan, you’ll want to consider marketing, advertising, sales, location, and ownership, to name a few categories. To help guide you, you can check in with the U.S. Small Business Administration, providing additional guidance for creating a business plan.

Once you’ve identified some of your business’s operation basics, it is then time to register your startup. Below, we'll walk you through the steps necessary to register your business in North Carolina.

Determine Your Business’s Entity Structure

Before you register your startup in North Carolina, in addition to creating a business plan, you must also determine your organization's legal ownership structure. Popular structures include sole proprietorships, general partnerships, limited partnerships, limited liability companies (LLCs), C-corporations, and S-corporations.

Let’s look at some structures more specifically. An LLC, for example, is “legally distinct and separate from its owners. An LLC offers its owners both limited personal liability for actions of the business and special tax treatment that may prevent what has been called “double taxation” of the owners’ income.”

On the other hand, a C-corporation is “a separate legal entity from the individuals who form it and its owners. Accordingly, owners are generally protected from personal liability.”

In North Carolina, certain businesses are not required to be registered with North Carolina’s Secretary of State: sole proprietorships and general partnerships. A sole proprietorship, for example, is “a business that is owned and operated by an individual. The owner is personally and legally responsible for their actions. All profit or loss from a sole proprietorship belongs to the owner.”

In this type of informal entity, the founder is solely responsible for all debts and obligations associated with the startup. Thus, no shield of liability exists.

Your chosen business entity determines the next steps in registering your startup. Read on to learn about the next steps.

Choose the Name of Your Startup

When you’re ready to register your startup, depending upon your chosen business structure, North Carolina requires you to choose a unique business name, differing from any other registered businesses in the state. In addition, you must follow North Carolina’s business naming conventions, which help make your startup’s name distinguishable.

To confirm if your startup’s name is distinguishable from other registered businesses, you can use North Carolina’s online business name search tool.

Remember, this is only a preliminary search for a similar business name. Once you file your startup’s registration, another name availability search will be conducted when your application is processed.

Suppose you’re not quite ready to register your startup, but you’d like to preserve your startup’s name. In that case, you can file a name reservation application with North Carolina’s Secretary of State’s office. You may keep your business name reserved for ten (10) years, a much more extended period than other states.

Identify Your Registered Agent

You’ll also need to select and continuously maintain a registered agent who is the designated recipient of any legal and tax documentation on behalf of your startup. You can specify an individual or an entity as your registered agent. Further, your entity itself can serve as the registered agent.

In North Carolina, the registered agent can be an individual or a business. However, both must have a street address in North Carolina where they can receive the delivery of documents.

Submit Your Formation Forms

Depending upon your chosen business structure, you’ll need to register with the North Carolina Secretary of State before commencing operations in the state. You may file your formation forms by US mail or online through North Carolina’s online portal.

North Carolina’s Secretary of State provides all business registration forms for your startup. For example, for an LLC, you can use the sample forms provided on the site for your articles of organization, which also notify you of the required filing fee. In addition, you’ll file an article of incorporation for corporations, and for limited partnerships, you’ll file a certificate of a limited partnership. All forms can be filed online.

What to Do Next

After you submit your formation forms, registering your startup with the state, you’ll also need to obtain a federal employer identification number for banking and tax filings. Additionally, you’ll need to check in with the State of North Carolina and your local city and county to see if there are any additional business registrations required, such as a business license.

How Long Does It Take to Register a Business in North Carolina?

With online filing options, you can register your North Carolina startup in as little as a few hours. However, if you mail in your registration forms instead, you may have to wait a few days for your startup to be up and running officially.

Like any other task, preparation is vital. The more you prepare, the faster you’ll complete your registration. By researching your business’s services or products, determining if your startup name is unique, and choosing your ownership structure, you’ll be better prepared to complete the necessary registration forms.

How Much Does It Cost to Register a Business in North Carolina?

Depending upon your chosen entity for your startup, you will have filing fees due when registering your company. For example, if you register as a corporation or an LLC, you’ll pay a filing fee of $125.

You can also expedite your filings. For example, if you’d like your documents filed the same business day, you can pay an expedited fee of $200. If you’d like your documents to be filed within 24 hours (excluding weekends and holidays), you can pay an expedited fee of $100.

You’ll also need to file an Annual Report annually for your startup. For LLCs and limited liabilities, for example, the cost to file this report is $200.

After submitting your registration forms, you need to learn about any required state or local licenses, such as a business license.

Also, depending upon your entity, you may be liable for North Carolina’s business taxes, such as withholding, sales tax, and corporate tax. To better understand your state tax obligations as a startup, you can check with the North Carolina Department of Revenue, or you should consult with an accountant familiar with North Carolina tax laws.

How Do You Register as a Woman-Owned Business in North Carolina?

In North Carolina, if you are a woman-owned business, you have access to several certificate programs and resources, such as the Minority Business Enterprise/Women Business Enterprise (MBE/WBE) Program and the Office of Women’s Business Ownership, part of the U.S. Small Business Administration.

In addition to the state certification, you can also explore national certifications, such as those offered by the Small Business Administration (SBA). For example, the SBA offers three types of certifications for women-owned businesses, including the Women’s Business Enterprise (WBE), the women-owned small business (WOSB), and the Economically Disadvantaged Women-Owned Small Business (EDWOSB). To learn more about these certifications, visit the SBA’s website.

The Benefits of Registering a Business in North Carolina

Here are some benefits of registering your startup in North Carolina:

North Carolina has a top-tier talent pool and a competitive labor market.
North Carolina has a low cost of living.
The state enjoys a “vibrant entrepreneurial community” and is small business-friendly.
North Carolina also has a moderate tax environment, with a 2.5% corporate income tax rate.
North Carolina has 149 colleges and universities, contributing to a highly-skilled talent pool.
North Carolina has “rated as one of Forbes’ top 5 Best States for Business for 11 consecutive years.”
Great outdoor activities year-round.
Bar-b-que. No further explanation is needed.

The Limitations Associated with Registering a Business in North Carolina

Here are some limitations of registering your startup in North Carolina:

Potential hurricanes are making their way up the Atlantic seaboard.
Crime is higher in North Carolina than in other states.
If you’re not a basketball fan, this state may not be for you.

Learn more with us

Access more guides in our Knowledge Base for Startups

We Can Help!

At AbstractOps, we help early-stage founders streamline and automate regulatory and legal ops, HR, and finance so you can focus on what matters most—your business.

If you're looking for help registering your Utah startup, we can get your documentation ready, overall shepherding this process to ensure it's done right. Get in touch with us.

Like our content?

Subscribe to our blog to stay updated on new posts. Our blog covers advice, inspiration, and practical guides for early-stage founders to navigate their startup journeys.

Note: Our content is for general information purposes only. AbstractOps does not provide legal, accounting, or certified expert advice. Consult a lawyer, CPA, or other professional for such services.

Looking for a different state?

Visit our State Registration & Compliance Library to explore how to register a business in a different state.