How to Start an LLC in North Carolina

How to Start an LLC in North Carolina is the question most often asked by newcomers to the state looking to incorporate a business. Setting up a business in North Carolina is no different than doing it elsewhere in the US. There are three main ways to do it – through a corporation, a sole proprietorship or a Limited Liability Company (LLC). All three methods have their advantages and disadvantages, so depending on your situation, your choice will likely be the right one.

• Forming an LLC in North Carolina requires you to file an Articles of Organization with the North Carolina secretary of state. To file an article, all that is needed is to meet the requirements of the North Carolina Rules of Government, which are a few and simple. You must register the LLC, pay the fee, set up an office and register a name for the business. There is also a lot of paperwork involved, which means you might find yourself a little lost if you do not have someone guiding you through it. The best way to find out how to start an LLC in North Carolina is to talk to someone who has done it and has the experience you need.
• The major difference between a corporation and a sole proprietorship in North Carolina is that one needs to register its corporation with the state as well as pay the appropriate taxes. Unlike a sole proprietorship, there is no requirement to register for corporate taxes with the IRS. But if you have a limited liability company, then you will need to register as a member of NRI, otherwise known as a New Residential Institute. This will entitle you to exemption from paying income taxes on dividends and capital gains. However, these exemptions are only available for six months at a time and cannot be extended.
• Forming an LLC in North Carolina requires that you first send the appropriate forms to the Secretary of State through mail. The paperwork can then be filed with your local county clerk. If the secretary determines that the LLC should be registered, he or she will post a notice of the filing fee along with a detailed schedule outlining the process of filing and on how to pay the filing fee. You will also need a certificate of incorporation from your state or the office that you filed the papers with, a copy of the articles of organization from your state, and your LLC’s tax identification number.
• Your next step, if you were filed under the name of a corporation, is to register the LLC with the Secretary of State by completing and returning the form for its registered agent. You must include the LLC’s address, date of formation, its original memberships, and its duration. On the bottom of the second page of the form, there is an exact term definition of what your LLC is and it must include all of its specific functions as well as the responsibilities and powers it possesses.

The last step is to complete and file your articles of organization. An LLC requires that its name be registered in the Register of LLCs and that it be operated for profit. Your articles of organization must include the names of all of the LLC’s members and the date of each meeting. Additionally, it must include a statement acknowledging the intent to register the LLC and describe what powers the LLC has or will have. All of these things are the responsibility of the LLC business owners.