How To Form an LLC In North Carolina
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1. Choose a Name for Your North Carolina Limited Liability Company
Check for an Available Name for the LLC in North Carolina: First, choose a name for your LLC. Make sure that you choose a name that is available in North Carolina by searching online databases and other records. You might want to start by searching the database on the official website of the North Carolina Secretary of State to see if the name that you have in mind is in use by another company in North Carolina: North Carolina LLC.
Reserve a Name for Your North Carolina LLC: It is not a requirement to reserve a name for your LLC before you file Articles of Organization in North Carolina, but you might consider reserving a name if you cannot file Articles of Organization right away. To reserve a name, you can submit an application. The name reservation application is available online at North Carolina LLC. The name that you submit on the application will be reserved for 120 days. You will need to pay the $30.00 filing fee.
Filing for Trademarks Protection and Doing an LLC Name Search: When you are searching for an available name for your LLC, you may find that the name that you have in mind is available in North Carolina but in use by an LLC in another state. Your use of the name could be restricted. An attorney can help you to know how your use of the name may be restricted and how you can trademark the name. You may learn more about choosing a name for your LLC at ___________.
North Carolina LLC Name Requirements: Your North Carolina LLC must have the designation "LLC," “L.L.C.,” or "Limited Liability Company" as part of its name. “LLC” stands for “Limited Liability Company,” and not “LLC Corporation, “Limited Liability Corporation,” or anything else that could seem to signify a corporation. An LLC is organized differently than a corporation.
2. Find a Registered Agent in North Carolina
Next, choose a registered agent to act as an agent for service of process for your North Carolina LLC. Your registered agent receives tax forms and other official documents for your LLC. There are various corporate services companies that offer registered agent services to LLCs for a fee of around $75.00 to $150.00.
3. File Articles of Organization with the North Carolina Secretary of State
Minimum Requirements for the Articles of Organization: The Articles of Organization that you file for your North Carolina LLC must contain the name of your LLC, the name and address of the organizer, the street address of your initial registered office, the name and street address of your registered agent. You must also indicate whether the LLC will be managed by a manager or by its members. The Articles of Organization must be signed by the organizer before you submit the document to the Secretary of State. You can download a PDF form for this document online at North Carolina LLC.
Other North Carolina Legal Provisions: Consider including additional provisions in your Articles of Organization. A lawyer can help you to determine which additional provisions will be the most beneficial for your company.
Where to Submit the Articles of Organization for Filing: You can send your signed Articles of Organization to the Corporations Division, P.O. Box 29622, Raleigh, NC 27626-0622.
Filing Fee: The filing fee for Articles of Organization in North Carolina is $125.00.
4. Form a North Carolina Limited Liability Company Agreement (Operating Agreement)
Once you have formed your LLC in North Carolina by filing Articles of Organization, you can create an LLC Agreement that will govern your LLC and actions between the members of the LLC. The specific details of an LLC Agreement depend on a number of factors. When you are drafting your company’s LLC Agreement, you should consider what the scope of your business is, the number of members you anticipate having, who will be investing capital in the company, how the members will be organized, what the powers of managers and executives will be, the way that money will be distributed among the members, and what will happen if you eventually decide to dissolve the company or incorporate. You should also take the purpose of your LLC into account when you are creating your LLC Agreement. LLCs are formed for a number of purposes, from running a retail store or a manufacturing company to acquiring real estate. Although it can be complicated to write an effective LLC Agreement, if you seek the counsel of a lawyer and an accountant you will be able to create an LLC Agreement that is in compliance with all state requirements and federal tax laws.
After creating your LLC Agreement, you will need to make securities filings for your LLC, obtain an EIN from the IRS, and obtain a business license in the city where you will be doing business. There are various corporate services companies that offer assistance with these types of filings for a fee. You can go to our online guide at http://www.cityapplications.com/business-licenses.html to learn about how to get a business license in your city.
5. Qualify Your North Carolina LLC to Do Business in Other States
When you are preparing to do business in other states, you will need to qualify or register your LLC to do business in other states. You even need to qualify your LLC to do business in your home state if the main office of the company is located in another state. In most cases, you will need to pay taxes in your home state when you do business in other states. You can go to [Qualifying to Do Business in Other States] to learn about how you can qualify your LLC to do business in other states.
6. Make Annual Filings and Pay Annual Taxes in North Carolina
LLCs in North Carolina must file an annual report with the state. The filing fee for this report is $202.00. You can begin filing your annual report online at North Carolina LLC. You will be also required to file a tax report and pay taxes annually. You can go to the official website of the North Carolina Department of Revenue at North Carolina LLC to find information about the taxes that will apply to your LLC and to download tax forms.
Although it can be complicated to form an LLC in North Carolina, if you seek the counsel of an accountant and an attorney you can have more confidence that an LLC is right for you and that all your paperwork will be processed correctly.
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This site is for informational purposes only and does not constitute legal, financial or tax advise. The information on this site should not be relied upon as an official source of information and should be independently verified.