How to form an LLC in North Carolina

Who should form an LLC in North Carolina?

Anyone who lives in North Carolina or runs their business from there. If you form in another state but operate in North Carolina, you will usually have to register there as a foreign LLC anyway, paying both states' fees. See home state or another state.

How do you form an LLC in North Carolina, step by step?

1. Choose and check the name

   Search the state's business records and include "LLC", "L.L.C." or "Limited Liability Company" in the name.

2. Appoint a registered agent

   A person or company with a physical street address in North Carolina. See what a registered agent is.

3. File the Articles of Organization

   Online through the Secretary of State's business registration portal, or on paper using Form L-01, with the $125 fee. Expedited processing is available for an extra fee.

4. Get an EIN and sign an operating agreement

   The EIN is free from the IRS. See LLC operating agreement.

5. Register for state taxes

   Sales tax and payroll as needed. Then note the first yearly filing date.

What does North Carolina require every year?

An annual report each year, $200 plus a small electronic filing charge, due by April 15, starting in the year after the LLC is formed. An LLC that does not file can be administratively dissolved by the Secretary of State.

For deadlines, fees and late penalties in detail, see North Carolina LLC yearly filings.

What do the first two years cost?

The $200 report is due every year regardless of income, so budget for it from the start.

Should you file it yourself or use a formation service?

Filing yourself costs only the state fee, and the North Carolina filing is short enough for most owners to complete. A formation service saves time, can act as your registered agent and may send reminders for yearly filings, but compare total yearly costs: low headline prices are often paired with paid add-ons such as expedited filing, operating agreements or EIN applications, which you can do yourself free. Whichever you choose, keep the approved filing, the EIN letter and your operating agreement together. See how much an LLC costs.

Can a non-resident form an LLC in North Carolina?

Yes. North Carolina has no residency or citizenship requirement for an LLC's members or managers. You need a registered agent with a North Carolina street address and an EIN; a foreign owner without a Social Security number applies for the EIN on Form SS-4. A single-member LLC owned by a foreign person files Form 5472 with a pro forma Form 1120 every year, even with no US income. See can a non-resident own a US LLC and annual filings for foreign-owned LLCs.

What happens if you miss a required report?

The state usually charges a late fee and marks the LLC as not in good standing, which can block a certificate of good standing, a bank account or a loan. If the filing stays overdue, the state can administratively dissolve the LLC, ending its liability protection and its claim to the name. Reinstatement means filing every missing report and paying the fees owed, so put the dates in your calendar. See reinstating a dissolved LLC.

Which North Carolina taxes apply to an LLC?

Owners pay North Carolina's flat income tax on their share of profit, at a rate the state has been reducing. The state sales tax is 4.75%, plus local taxes; register with the North Carolina Department of Revenue if you sell taxable goods. LLCs taxed as corporations also pay franchise tax.

If you sell online, see North Carolina sales tax for online sellers.

Federally, a North Carolina LLC is taxed like any other LLC. See how LLCs are taxed. For a side-by-side view of state costs, see how much an LLC costs.

This guide is general information. It is not tax or legal advice for your situation.