Sole proprietorships are exempt from state registration in North Carolina. You must submit a Doing Business As (DBA) registration with the county where your business is located if you intend to operate under a name other than your own. By registering your business name, you can make sure it is not already in use and use the name for business purposes.
Even while single proprietorships are exempt from state registration requirements, it is still crucial to secure the relevant licenses and permissions required for your particular business. Fines and legal repercussions may occur from failure to get these licenses and permits.
Limited Liability Companies (LLCs) must register with the North Carolina Secretary of State, in contrast. LLCs must also submit an annual report and pay an annual fee to keep their status as active entities. The legal status of the LLC may be revoked if this is not done.
For taxation reasons, LLCs in North Carolina are categorized as pass-through entities, which means that the business’s gains and losses are reported on each owner’s personal income tax return. However, LLCs with several members have the option of electing to be taxed like corporations.
You will require an Employer Identification Number (EIN) from the IRS in order to file your LLC taxes in North Carolina. You also need to submit a North Carolina Annual Report and a Corporate Income and Franchise Tax Return (Form CD-405).
The type of company entity and state-specific regulations determine which state charges the highest incorporation fee. However, California is frequently mentioned as having some of the highest annual maintenance and incorporation fees.
You can have an LLC in two or more states, yes. In order to accomplish this, you must register your LLC as a foreign entity in each additional state where you intend to conduct business. However, each state may impose additional costs and documentation requirements as a result. The appropriate course of action for your unique business needs should be discussed with an attorney or accountant.