How to Start an LLC in North Carolina 2024 (Step-By-Step Guide)

Last Updated on 2 months by Komolafe Bamidele

A business might choose to form an LLC in North Carolina or any other US state for several reasons. One main reason is to make the business look more professional. 

Businesses that have an LLC tag next to their name give their customers peace of mind. But there are so many choices and pieces of information that making an LLC can be hard. 

This guide will show you how to start an LLC in North Carolina so you can be sure of the start of your new business.

Creating an LLC in North Carolina

Step 1: Choose Your LLC’s Name

Make sure your name has the words “limited liability company” in it. You can also use an abbreviation, like “LLC” or “L.L.C.” You can cut the word “company” down to “Co.” and “limited” down to “Ltd.”

You can style your name however you like, but before you file, make sure that your name is available. 

The business name you choose must be unique and not the same as any other name on the North Carolina Secretary of State’s list of businesses. 

Make sure that your LLC name is available by using the North Carolina Secretary of State’s Business Registration search tool. This will save you time and money.

It costs $30 to file an Application to Reserve a Business Identity Name if you want to hold on to a name before you file an LLC. Your chosen business name is held for up to 120 days by this action. 

Step 2: Identify a Registered Agent

LLC filings in North Carolina must have a registered person. The proper person or business to contact for an LLC in North Carolina is the registered agent. 

They might be people or businesses. This individual must have a state address to receive legal documents and other government alerts on behalf of the business.

Be your registered agent or hire one. Hiring a service gives a business greater privacy and handles paperwork so you don’t miss critical financial deadlines. Work and North Carolina residency are crucial for registration.

Step 3: Obtain Industry Specific Permits and Licenses

The correct permits and licenses can help a business avoid breaching State and Federal laws, which can have legal and financial consequences. Your business and sector may require permissions and permits.

A business owner running a building firm must get licenses and permissions from the North Carolina Department of Transportation, Labor, and Environmental Quality. 

Running a business requires moving large objects and managing workers. Food businesses require North Carolina Alcoholic Beverage Control Commission licenses. 

Find out what permissions and licenses you need before starting your business and get them. This ensures you obey business regulations. 

Get guidance from a competent lawyer or business expert to prevent costly blunders when seeking permission and a license. 

Step 4: File Your North Carolina LLC Forms

What you do next varies on whether your business is in the United States or a different country. Send in Articles of Organization or Form L-01 if you’re setting up your LLC as a household business. 

If a foreign company wants to set up an LLC in North Carolina and show that they are allowed to do business there, they need to fill out Form L-09.

The fee to file is $125 for local businesses. Foreign companies have to pay $250. Also, every LLC has to give the Secretary of State a report once a year. 

You’ll have to pay $200 to file on paper. Right now, you can finish the signup process online.

Step 5: Create an Operating Agreement

Starting an NC LLC doesn’t require a running agreement. Having one is still wise. An LLC operating agreement explains how your LLC is formed and how much stock each individual holds. 

It should also allocate members’ gains, losses, rights, obligations, and voting rights. A running agreement can also state what happens if an LLC member exits.

LLC default rules apply if you don’t have an operating agreement or it doesn’t cover a problem. Another reason to have one. North Carolina’s Limited Liability Company Act states that every member is a manager and has one vote in a member-managed LLC, regardless of their investment.

If you want members’ votes to count depending on their contributions, incorporate it into your running agreement.

Step 6: Apply For An EIN

You need an EIN to run a business. The IRS issues each business a nine-digit EIN for tax purposes. Like your business’s SSN.

An EIN enables your business to become a separate legal entity and is required by most enterprises. With an EIN, you may open a business bank account, receive credit, and recruit employees.

Online EIN applications with the IRS are simple. Your business’s name, location, and kind of business unit are enough. The quick and easy online application gets you your EIN straight away.

EINs are required for business startup and operation. Making your business a separate legal entity starts with applying for an EIN today. Don’t delay.

Step 7: Open a Business Bank Account.

You can start an LLC without opening a business bank account, but we strongly advise that you do so because it has many benefits. 

There may be an initial deposit and/or a minimum deposit that you need to make to open an LLC bank account. Compare your choices and shop around. 

Different banks also need different kinds of information or paperwork to open an LLC account. 

How Much It Costs to Set Up an LLC in North Carolina 

Going into business as an LLC in North Carolina costs money. People who want to start their own business must first pay the state’s $125 beginning filing fee. 

This fee can’t be negotiated and is required to properly set up your limited liability company. A fee of $200 is charged every year for the report. This ongoing fee makes sure that your LLC stays in good shape and follows all state rules.

North Carolina requires LLCs to have a registered agent in the state so that they can receive court papers and official mail. 

Obviously, you can be the listed agent yourself, but hiring a professional can make things easier for you, and they usually charge an annual fee.

To Wrap Up

Making an LLC in North Carolina can help you plan your business, keep your personal property safe, and work with other people who own a part of the business. 

You can start an LLC in North Carolina by following these steps. However, if you want to make the process easier, you can use a cheap online service to form an LLC right now.

Continue reading; LLC vs S’ Corp – Which is Better for Tax Filing (Similarities & Difference)