How to Form an LLC in North Carolina
The Secretary of State dictates the guidelines to follow to form an LLC. It may cost you as little as $125 to start your North Carolina LLC.
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Starting a limited liability company in North Carolina allows you to formalize your business while protecting your personal assets. In most cases, you’ll file articles of organization, designate a registered agent with a physical North Carolina address and set up the basics for how your company will be run. From there, staying in good standing is largely about keeping your information current and filing required reports on time.
How to start an LLC in North Carolina
The North Carolina Secretary of State sets the guidelines businesses need to follow to register and form an LLC in the state. We break down each step below.
Step 1. Choose a name for your LLC
The first step to forming an LLC in North Carolina is to select a business name. Your business name must meet the requirements set out by the Secretary of State.
Name availability and reservation
The name for your North Carolina LLC needs to end with one of the following:
- Limited liability company.
- LLC.
- L.L.C.
- Ltd. liability co.
- Limited liability co.
- Ltd. liability company.
Your LLC business name must not include “corporation,” “incorporated” or “Inc.” Those give the impression you have a business other than an LLC.
The following words are restricted or regulated. They’re only allowed based on your industry and proper approval:
- Bank, banker or banking.
- Trust.
- Mutual.
- Co-op or cooperative.
- Insurance.
- Engineer or engineering.
- Architect, architecture or architectural.
- Survey, surveyor or surveying.
- Certified Public Accountant.
- Wholesale.
The Secretary of State will reject your business name if it’s too similar to the name of another business. For example, if a company called “A Delicious Restaurant, LLC” already operates in North Carolina, then you can’t call your LLC “The Delicious Restaurant, LLC.”
Next, you'll want to check that your LLC name is available by using the Secretary of State’s business name search. You may also want to search local and online business directories. It’s also a good idea to check North Carolina’s trademark database and federal trademark database.
You can reserve your preferred LLC name by filing an Application to Reserve a Business Entity Name with the Secretary of State. This will reserve your name for up to 120 days for a $30 fee. You can file online, by mail or in person.
Professional LLCs in North Carolina
A professional limited liability company (PLLC) is a type of LLC that only members of licensed occupations, such as doctors and attorneys, can form. North Carolina has strict and specific requirements for PLLC membership.
Your professional limited liability company’s name must end with ”PLLC.” You’ll file a different formation document with the Secretary of State. Otherwise, the setup process for PLLCs is similar to that for regular LLCs.
North Carolina LLCs with trade names
In some instances, you may want to operate your business under a trade name. This is also called an assumed name, fictitious business name or “doing business as” name. It allows you to have a public-facing business name that’s different from the company’s legal name.
For example, your business’s legal name may be “Jane Smith Gardening and Landscaping Services, LLC.” But you may prefer to operate informally as “Jane’s Gardens.” In this case, you’ll need to ensure that the trade name “Jane’s Gardens” is available. Search the Secretary of State’s assumed name database along with the same places you’d search when choosing your LLC’s legal name.
You’ll also need to file an assumed business name certificate at the register of deeds in your county, along with a $26 filing fee.
Step 2. Select a registered agent
The next step to starting an LLC in North Carolina is naming a registered agent. Your registered agent accepts official mail and government notices on your business’s behalf and forwards them to you. The agent can be an individual who resides in North Carolina or a commercial entity. They must maintain a physical address in North Carolina (not a P.O. box).
It is possible for you, a business partner or a friend or family member to serve as the registered agent for your LLC. But that person’s name will appear in public records. For privacy and convenience, most small business owners opt to use a commercial provider as their resident agent.
Step 3. File your LLC articles of organization
The next step to starting an LLC in North Carolina is to file your LLC articles of organization. To do this, you’ll file Form L-01 with the Secretary of State. Once approved, the articles of organization will grant your LLC the authority to operate in North Carolina.
The following information will be needed to complete the North Carolina articles of organization document:
- Business name and address.
- Name, address and signature of all LLC members and/or organizers.
- Name and street address of the registered agent.
- Desired effective date of the LLC’s formation, if not the date of filing.
If you’re in a professional occupation and are forming a PLLC, then you’ll file PLLC articles of organization (Form PLLC-02).
Once you've completed the articles of organization document, you can file online, by mail or in person. You'll also need to pay the $125 filing fee. For the fastest processing, file online.
The Secretary of State will look over your articles of organization. If approved, the state will keep the original document for its records. The person who submitted the articles will receive a certified copy.
Currently, it can take 10 to 15 business days to process hard copy articles of organization. The Secretary of State's website says that online processing is faster.
Foreign LLCs Operating in North Carolina
If you've already formed your business under the laws of another state and now want to operate in or expand to North Carolina, the process is a bit different. This makes you a foreign LLC, and you must file a certificate of authority (Form B-09) with the Secretary of State. The filing fee is $250.
You’ll also have to attach a certificate of good standing from your home state to this form.
Step 4. Obtain North Carolina business licenses
North Carolina does not issue a general business license. Instead, you must determine what licenses and permits your business needs. The North Carolina Department of Commerce offers a searchable online directory.
You can also contact a business advisor who can tell you more about licensing requirements in North Carolina.
Step 5. Create an LLC operating agreement
Once you've filed your articles of organization, you've officially formed an LLC in North Carolina. But there’s one more important step to complete the process.
You should draft an LLC operating agreement. This document describes the daily operations of your LLC. It also specifies the rights and responsibilities of each member. North Carolina law does not require you to file an operating agreement. But having one creates guidelines that govern your LLC throughout the life of your business.
At a minimum, here’s what you should include in the operating agreement for your North Carolina LLC:
- Description of your LLC’s products or services.
- Each member’s name and address.
- Each member’s asset contributions to the LLC, voting rights and profit share.
- Whether your LLC is member-managed or manager-managed.
- The manager’s name and address if the LLC is manager-managed.
- The LLC’s meeting schedule and voting procedures.
- The procedure for admitting new members to the LLC.
- The procedure for electing a manager if applicable.
- Terms and procedures for dissolving the LLC.
Every member of the LLC should have an opportunity to review and sign the operating agreement. After every member signs, you can store the agreement with other business records. Because North Carolina doesn't require this document, you don't have to file it with the state.
Maintaining good standing for your North Carolina LLC
Now that you’re set up as an LLC, you'll need to keep your business in good standing. Pay your taxes on time and maintain business licenses. Ensure that you hold regular member meetings. Document decisions in writing when a member or manager acts on behalf of the LLC. Here are some additional steps you need to take.
Comply with federal, state and local regulations
Review and follow the various federal, state and local regulations that may apply to your business. The specifics will vary based on your business's location and industry. But these regulations may include:
- Getting an EIN. It's likely that your LLC will need an employer identification number (EIN). You’ll use this number to file your federal taxes. You may also need it to open a business bank account or apply for a business loan. You can apply for an EIN from the IRS online.
- Employer guidelines. If you have employees, you'll need to follow particular regulations. These can include reporting new hires and purchasing workers' compensation insurance. You may also need to withhold payroll taxes and pay unemployment taxes.
- Paying taxes. Unless you choose otherwise, your LLC will be taxed as a pass-through entity. This means each member will pay LLC taxes on their personal tax return for both federal and state income tax. You may have other tax responsibilities on top of income taxes. These can include self-employment taxes, payroll taxes (withholding income tax and FUTA taxes) and sales taxes. Businesses that sell taxable goods or services must register for a sales and use tax number from the North Carolina Department of Revenue. You’ll need to collect sales tax from your customers, file tax returns and remit the tax to the state. The filing frequency depends on the amount of tax you collect from customers.
File your annual report
As an LLC owner in North Carolina, you’re responsible for filing an annual report with the Secretary of State. The annual report gives you an opportunity to update any business information that’s on file with the state.
You can file your annual report online or by mail. If you file online, you'll need to pay a $203 filing fee. If you file by mail, you'll pay a $200 filing fee. The annual report is due April 15th of each year after the year of creation of your LLC.
How much does it cost to start an LLC in North Carolina?
Starting an LLC in North Carolina is fairly affordable. Generally, you'll only need to pay the $125 filing fee for your articles of organization to get started. Some businesses, though, may require other services that come with additional fees.
- $125 for articles of organization.
- $10 for a reserved name.
- $5 for a designation of registered agent.
- $5 for a state of change of registered agent.
- $50 for an amendment of articles of organization.
- $10 for articles of correction.
Not sure if an LLC is the right business entity type for you? Take our quick quiz below to find your business structure match.
Frequently Asked Questions
What is needed to start an LLC in NC?
To form an LLC in North Carolina, you need to:
- Choose a unique business name.
- Select a registered agent.
- File articles of organization with the Secretary of State (includes a $125 filing fee).
- Get any necessary business licenses and permits.
- Create an LLC operating agreement.
How long does it take to set up an LLC in North Carolina?
The process of starting an LLC in North Carolina is fairly straightforward. You can complete the necessary searches and paperwork in a matter of hours. However, it generally takes 10 to 15 business days for the Secretary of State's office to receive, process and return your documents.
You can speed up your timeline for approval if you file online instead of by mail. The state also offers two options for expedited services:
- A 24-hour option for a non-refundable fee of $100.
- A same-day option for a $200 non-refundable fee.
How do you dissolve an LLC in North Carolina?
If you decide to close your business, you'll want to officially dissolve your LLC. To dissolve an LLC in North Carolina, you'll need to complete articles of dissolution of limited liability company (Form L-07). File this form with the Secretary of State. The filing fee is $30.
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