North Carolina Secretary of State

The Secretary of State (SOS) of North Carolina is an elected constitutional officer. He/she operates in the executive branch of North Carolina’s government. The secretary is responsible for maintaining the official journal of the NC General Assembly.

Also, the SOS is in charge of controlling land records and chartering organizations, and managing a few commercial laws. The NC SOS is elected every four years and is not subject to term limitations.

Starting a Business in North Carolina

Choose a Business Structure

When you already own a legal entity in NC (such as a corporation, nonprofit, or LLC), registering it may bring you two main advantages: 

1. Increased Liability 

2. Protection from personal responsibility in case anyone sues your company 

However, it is vital to determine which business structure is proper for you. Most small businesses choose the Limited Liability Company (LLC) structure, as it is easy to maintain and has beneficial tax processing. Moreover, the LLCs combine the personal asset defense of a company with a Partnership or Sole Ownership flexibility. 

Register Your Business

After choosing the structure, your next step is forming it. Note that the business structure you have selected does not play any role in completing the following common steps:

• Giving your business a name

• Finding a registered agent (business organization or an individual that receives legal and tax documentation on behalf of your company)

• Obtaining an Employer Identification Number (EIN) (a number that the Internal Revenue Service (IRS) assigns to assist in identifying businesses for tax purposes)

• Submitting formation paperwork

Select a Business Name

The initial step to integrate your company in NC is to choose a unique name, not previously used by another company in the state. Yet, there are some factors you need to consider when selecting your name.

• In North Carolina, it is illegal to use a title that another organization is already using or one that is relatively similar. The only exception will be in case you obtain written permission from the company using it. Also, if the name you want is reserved (but not used yet) by another corporation, you may transfer the name to your business if the present users agree.

• The name should include terminology like “company” (co.), “corporation”(corp.), “limited”(ltd.), or “incorporated”(inc.). North Carolina's Secretary of State may dismiss these words when he/she determines if the name is unique or not.

• The Secretary of State may also dismiss prepositions, articles, the substitution of an Arabic numeral for a word, punctuation, conjunctions, and spaces.

• The name must not contain language indicating that the business is organized for any aim other than that stated in the company’s articles.

In NC, some particular words and expressions are not appropriate to use in a company name. Yet, you can use them if you receive permission from the proper legal authority or bring documentation that indicates you are legally authorized to present the stated service. Here are those words:

• Engineer(-ing)

• Architect(-ure,-ural)

• Trust

• Bank(-er,-ing)

• Insurance

• Mutual

• Wholesale

• Realtor

• Survey(-or,-ing)

• Co-op, Cooperative

• Certified Public Accountant (or abbreviations of this)

Form an LLC in North Carolina

LLCs are the easiest formal business organizations to structure and keep. So, you will need only a few documents and can easily form an LLC in the following steps:

• Give your LLC a name.

• Find a registered agent.

• Register your LLC with North Carolina.

• Form an LLC Operating Agreement.

• Obtain an EIN.

To document the Organization’s Articles for an LLC in NC, you need to present formation paperwork to the SOS online, in person, or by mail, together with the filing fee of $125.

Does North Carolina Require a Business License?

The need for a license depends mainly on the company’s location and what it does. The state-level licenses are two in NC: general and occupational. Yet, to operate your business in the state, you do not have to provide a general license. So, your LLC will not need it.

Anyways, depending on the type of entity you operate, your LLC may need an occupational license. The latter will be claimed depending on what your company does and where it is occupied. For instance, you will need it for selling used cars or running a hair salon.

How Much Does a Business License Cost in North Carolina?

As legal entities in NC don't need a general license to operate, there are no fees for it.  However, for the state-level occupational license, you will need to pay. There is a filing fee that varies depending on where you operate your company and in what industry. So, it is not possible to predict the number of licensing fees.

For instance, permits given by a county with large cities are usually more expensive than those in rural, less populated counties. In the same way, permits for regulated industries, such as childcare utilities, cost more than generic business permits.

Note that the LLC you operate may not require permits at all. So, your North Carolina business license can cost $0.