How to Start a Business in North Carolina (2026)

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

To start a business in North Carolina you choose an entity, register your LLC or corporation with the NC Secretary of State, get a free EIN from the IRS, and register for state taxes with the NC Department of Revenue. North Carolina has no single general state business license, but you may need a sales and use tax Certificate of Registration plus local and professional licenses.

Choose Your Business Entity

Your first step is choosing a structure, because it sets your liability, your taxes, and which filings you make. A sole proprietorship is the default when one person does business without forming an entity - the simplest option, but with no liability protection and unlimited personal exposure. A limited liability company (LLC) is the most common choice for small businesses because it separates personal assets from business debts while staying flexible for tax. A corporation is a separate taxable entity typically chosen by companies planning to raise outside investment.

Compare the options in S-Corp vs LLC and how to form an LLC. The choice matters for the rest of this process: a sole proprietor does not file formation papers with the Secretary of State but still registers for taxes and licenses, while an LLC or corporation must be created with the state before it can register for taxes, open a bank account, or sign contracts in the entity's name. If you are unsure, an LLC is a common starting point that balances protection and simplicity.

Register With the NC Secretary of State

If you form an LLC or corporation, you register it with the North Carolina Secretary of State. An LLC is created by filing Articles of Organization; a corporation files Articles of Incorporation. You can file online through the Secretary of State's business registration system, which is the fastest method, or by mail. The Articles state the company's name - which must include an LLC designator and be distinguishable from existing names - and the name and address of the company's registered agent.

Every North Carolina LLC and corporation must continuously maintain a registered agent with a North Carolina street address to receive service of process and official notices. Because the Secretary of State sets and periodically updates its charges, confirm the current filing fee for the Articles of Organization on the Secretary of State's fee schedule rather than relying on a figure from elsewhere; see our North Carolina LLC cost guide. Once the Articles are accepted, the entity legally exists, and you can move on to your EIN and tax registrations. Note that you should choose and clear your name before filing - and confirm it does not infringe a federal trademark.

Get an EIN

Most North Carolina businesses need a federal Employer Identification Number (EIN), which the IRS issues free online or with Form SS-4. You need an EIN if you have employees, operate as a corporation or multi-member LLC, or file certain excise taxes. A single-member LLC or sole proprietor without employees can sometimes use a Social Security number, but banks generally require an EIN to open a business account, so most owners get one regardless.

Apply for the EIN after your LLC or corporation is formed, using the entity's exact legal name, so your federal and state records line up. By default the IRS taxes a single-member LLC as a disregarded entity and a multi-member LLC as a partnership; either can elect corporate or S-corporation treatment by filing the appropriate IRS form. The EIN is your business's federal tax ID and is used on tax returns, payroll filings, and bank and license applications, so keep the IRS confirmation notice with your company records.

Register for Taxes With the NC Department of Revenue

After forming the entity and getting an EIN, register for state taxes with the North Carolina Department of Revenue (NCDOR). The main tool is the NC-BR business registration, which you can complete online. NC-BR sets up the state tax accounts your business needs - most commonly income tax withholding if you have employees, and sales and use tax if you sell taxable goods or services. Registering once through NC-BR can establish several of these accounts together.

Which accounts you need depends on your activity. An employer must register to withhold North Carolina income tax from wages and to remit it to NCDOR. A retailer must register for sales and use tax (covered below). A business taxed as a C corporation has North Carolina corporate income and franchise tax obligations, while a pass-through LLC's profit is generally taxed on the owners' North Carolina individual returns. See our business tax overview and North Carolina LLC tax filing guide for how these fit together, and confirm current forms and rates with NCDOR.

Sales and Use Tax: Certificate of Registration

If your business sells taxable tangible goods or certain taxable services in North Carolina, you must register with NCDOR for a Certificate of Registration before making sales, then collect and remit North Carolina sales and use tax. You obtain the certificate through NCDOR, commonly as part of the same NC-BR registration, and you display it and file sales tax returns on the schedule NCDOR assigns you.

The combined sales tax rate you charge includes the state rate plus applicable county rates, so the total varies by location. Specific goods and services have their own rules, and some items are exempt or taxed at special rates. If you buy taxable goods for use in North Carolina without paying sales tax - for example, from an out-of-state seller - you may owe use tax directly to NCDOR. Because rates and taxable categories change, confirm the current rules and your filing frequency with NCDOR, and keep your sales tax account current to avoid penalties. Retailers using a trade name should also review DBA requirements.

No Single State License: Local and Professional Licenses

Unlike some states, North Carolina has no single general state business license that every business must hold. That does not mean you need no licenses - it means licensing is handled by activity and location rather than by one statewide permit. Many occupations are regulated by North Carolina licensing boards - contractors, electricians, cosmetologists, real estate agents, and health professionals, among others - and require a state occupational or professional license before you can operate in that field.

On top of any professional license, cities and counties across North Carolina - including Charlotte, Raleigh, Greensboro, Durham, and their surrounding counties - may require their own local licenses, privilege licenses, or permits, and zoning, signage, health, and fire permits can apply depending on your business. Check the requirements of every city and county where you have a location or do business, and confirm whether your specific occupation is state-regulated. For a broader view, see our business license hub and business license in North Carolina guide. Doing this homework up front avoids fines and interruptions later.

Ongoing Requirements: Annual Report and Taxes

Once you are open, North Carolina expects you to keep the business in good standing. An LLC or corporation files an annual report with the Secretary of State each year; missing it can lead to administrative dissolution, which strips the entity of its good standing and its liability protections until it is reinstated. Confirm the annual report fee and due date on the Secretary of State's site, and keep your registered agent and address current so you actually receive the reminders and any legal notices.

You also keep your tax accounts current: file and pay sales and use tax on your assigned cycle, remit any employee withholding, and file the income or franchise tax returns that apply to your entity type. Set up a simple compliance calendar covering the annual report, sales tax filings, withholding deposits, and income tax deadlines, and retain copies of every filing with your records. Staying current on the annual report and taxes is the simplest way to avoid penalties and keep your North Carolina business running smoothly. When it is time to close, follow the state's dissolution steps rather than simply abandoning the entity.

Frequently Asked Questions

Does North Carolina require a general state business license?

No. North Carolina does not have a single general state business license that every business must hold. Instead, licensing depends on your activity and location, so you may need specific state occupational licenses plus city or county licenses and permits where you operate.

Where do I register a business in North Carolina?

You form an LLC or corporation with the North Carolina Secretary of State, then register for state taxes with the North Carolina Department of Revenue. A sole proprietor skips the Secretary of State formation step but still registers for any taxes that apply.

How much does an EIN cost in North Carolina?

Nothing. The IRS issues Employer Identification Numbers free of charge, online or with Form SS-4. North Carolina does not charge for the federal EIN, and you should avoid third-party sites that charge a fee to obtain one for you.

Do I need a sales tax number in North Carolina?

If you sell taxable goods or certain services, you must register with the North Carolina Department of Revenue for a Certificate of Registration and collect and remit sales and use tax. You register through the Department, often as part of the NC-BR business registration.

Do I need to register an LLC before getting an EIN in North Carolina?

It is best to form the LLC with the Secretary of State first, then apply for the EIN in the LLC's exact legal name. This keeps your federal and state records consistent. A sole proprietor without an entity can apply for an EIN using their own name.

Does a North Carolina LLC file an annual report?

Yes. A North Carolina LLC files an annual report with the Secretary of State to stay in good standing. Missing it can lead to administrative dissolution. Check the current fee and due date on the Secretary of State website before filing.

Related

• Business licenses (cluster hub)
• Business license in North Carolina
• How to form an LLC in North Carolina
• North Carolina registered agent
• How to get an EIN
• North Carolina LLC tax filing
• How to dissolve an LLC in North Carolina

Sources

1. North Carolina Secretary of State - Business Registration Division.
2. North Carolina Secretary of State - Start a Business.
3. North Carolina Secretary of State - Annual Report.
4. North Carolina Department of Revenue - Business Registration (NC-BR).
5. North Carolina Department of Revenue - Sales and Use Tax (Certificate of Registration).
6. North Carolina Department of Revenue - Withholding Tax.
7. North Carolina Department of Revenue - Corporate Income and Franchise Tax.
8. North Carolina Department of Revenue - Individual Income Tax.
9. Justia - North Carolina General Statutes, Chapter 57D (Limited Liability Company Act).
10. Justia - North Carolina General Statutes, Chapter 105 (Taxation).
11. Cornell LII - 26 CFR 301.7701-3 (entity classification election).
12. IRS - Get an Employer Identification Number (free EIN, Form SS-4).
13. IRS - Business Structures (choosing an entity).
14. IRS - Limited Liability Company (LLC) (default classification).
15. IRS - Self-Employment Tax (15.3% rate).

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current requirements with the North Carolina Secretary of State and North Carolina Department of Revenue before acting.