Is a single-member LLC in North Carolina a disregarded entity?

Yes, by default. The IRS disregards a single-member LLC as separate from its owner for income tax purposes, so an individual owner reports the business on Schedule C, E, or F with Form 1040. The LLC is still treated as a separate entity for employment and certain excise taxes.

Does a North Carolina single-member LLC need an EIN?

Not always. A disregarded single-member LLC may use the owner's Social Security number for income tax. It must obtain its own EIN if it has employees, owes excise tax, or needs one for banking or state tax accounts. An EIN is free directly from the IRS on Form SS-4.

When is the North Carolina LLC annual report due?

April 15 of each year after the year the LLC was created. The fee is $200, with a $3 transaction fee for online credit-card payment. North Carolina General Statute 57D-2-24 requires the report, and a company that fails to file risks administrative dissolution by the Secretary of State.

Does a single-member LLC protect personal assets in North Carolina?

A properly maintained LLC limits the owner's liability for business debts under Chapter 57D of the North Carolina General Statutes. Protection depends on keeping the LLC separate: a dedicated bank account, no commingling of funds, contracts signed in the LLC's name, and current annual reports.

Does a North Carolina single-member LLC need an operating agreement?

North Carolina does not require an LLC to file an operating agreement with the state, and a single-member LLC can exist without one. Having a signed agreement is still strongly advised because banks and courts use it to confirm ownership, authority to sign, and the separateness of the company from its owner.

Do I pay self-employment tax on a North Carolina single-member LLC?

Generally yes. Because the LLC is disregarded, its net profit is self-employment income to the owner. The self-employment tax rate is 15.3%, made up of 12.4% for Social Security and 2.9% for Medicare, and it applies once net earnings from self-employment reach $400.

Single-Member LLC in North Carolina (2026)

Q: How much does a single-member LLC cost in North Carolina?

Filing Articles of Organization with the North Carolina Secretary of State costs $125. After that, every LLC files an annual report for $200, due April 15, plus a $3 electronic transaction fee when paying by card online. A federal EIN is free from the IRS.

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 20, 2026 · Last updated Aug 20, 2026

A North Carolina single-member LLC is created by filing Articles of Organization with the Secretary of State for $125. The IRS treats it as a disregarded entity by default, so profit is reported on the owner's Form 1040. Every LLC then files a $200 annual report due April 15.

Quick Answer

Formation filing: Articles of Organization — $125 to the NC Secretary of State
Governing law: NC General Statutes Chapter 57D (NC LLC Act)
Federal tax default: Disregarded entity — Schedule C/E/F with Form 1040
Annual report: $200, due April 15 (plus $3 online card fee)
Registered agent: Required; NC street address, not a PO box alone
EIN: $0 from the IRS; required if you have employees or excise tax
Self-employment tax: 15.3% (12.4% Social Security + 2.9% Medicare)

What a Single-Member LLC Is in North Carolina

A single-member LLC is an ordinary limited liability company with exactly one owner, called a member. North Carolina does not treat it as a separate species of entity: the same Chapter 57D of the General Statutes, the North Carolina Limited Liability Company Act, governs a one-owner LLC and a fifty-owner LLC alike. There is no separate form, no separate fee, and no separate filing track. What changes with a single member is almost entirely on the federal tax side and in how carefully you must document the separation between yourself and the company.

The appeal is straightforward. A sole proprietor and their business are legally the same person, so a business creditor can reach personal assets. Forming an LLC interposes a separate legal entity that owns the business, signs the contracts, and bears the debts. Compare the two structures in sole proprietorship terms and in the national what is an LLC guide.

Forming the LLC: Articles of Organization

The LLC comes into existence when the Secretary of State accepts your Articles of Organization. The filing fee is $125. The document is short and asks for the company name (which must include an LLC designator and be distinguishable from existing names), the registered agent and registered office, the principal office address, and the name and address of at least one person executing the filing. Check name availability first with the North Carolina business entity search, and see North Carolina Articles of Organization for a field-by-field walkthrough.

Two related filings sometimes get confused with formation. A certificate of formation is the term other states use for the same document — North Carolina calls it Articles of Organization. And a foreign LLC already formed elsewhere does not file Articles of Organization at all; it applies for a certificate of authority for $250. See registering a foreign LLC in North Carolina. For the full cost picture, see North Carolina LLC cost.

North Carolina LLC Fee Table

Each amount below comes from the Secretary of State's published fee schedule for limited liability companies.

Filing	Fee	When
Articles of Organization	$125	One-time, at formation
Annual report	$200	Every year, due April 15
Online annual report transaction fee (credit card)	$3	If filing online by card
Application for Certificate of Authority (foreign LLC)	$250	One-time, on qualification
Statement of Change of Registered Agent / Office	$5	When the agent changes
Application for Reserved Name	$10	Optional, before filing
Articles of Dissolution	$30	One-time, at close
Federal EIN	$0	One-time

Registered Agent Requirement

Every North Carolina LLC must continuously maintain a registered agent and a registered office in the state to receive service of process. The agent can be an individual who resides in North Carolina or an entity authorized to do business there, and the registered office must be a physical street address in North Carolina where someone is available during business hours. A single-member LLC owner who lives in the state may serve as their own agent, but that puts a home address on the public record and requires being present to accept delivery. Changing the agent later costs $5. See North Carolina registered agent requirements and the national registered agent overview.

Federal Tax: Disregarded by Default

The IRS classifies a domestic single-member LLC as a disregarded entity unless the owner elects otherwise. Disregarded means the LLC is not treated as separate from its owner for income tax: an individual owner reports the business activity directly on Schedule C (general business), Schedule E (supplemental income), or Schedule F (farming) attached to Form 1040. The LLC files no separate federal income tax return.

Two important exceptions cut the other way. For employment taxes (since January 1, 2009) and certain excise taxes (since January 1, 2008), the IRS treats the single-member LLC as a separate entity that must file using its own name and EIN. So a "disregarded" LLC with a single employee is very much regarded for payroll purposes.

An owner who prefers corporate treatment can elect it by filing Form 8832, and an LLC that wants S-corporation treatment files Form 2553. That decision usually turns on whether the self-employment tax savings outweigh payroll and compliance costs. See S-corp vs LLC and business tax filing.

When You Need an EIN

A disregarded single-member LLC may generally use the owner's Social Security number for income tax purposes. It must obtain its own EIN if it has employees, has excise tax liability, or needs an EIN for banking or state tax accounts. In practice most owners get one anyway: banks routinely ask for an EIN to open a business account, and using an EIN instead of an SSN on vendor paperwork limits how widely your Social Security number circulates. An EIN is free directly from the IRS on Form SS-4 — you never need to pay for one. See getting an EIN in North Carolina.

Self-Employment Tax

Because a disregarded LLC's profit flows to the owner as self-employment income, the owner owes self-employment tax on it. The rate is 15.3%, consisting of 12.4% for Social Security and 2.9% for Medicare, and it applies once net earnings from self-employment reach $400. Only the first portion of combined wages and net earnings is subject to the Social Security component; that wage base is adjusted each year, so confirm the current-year figure with the IRS rather than relying on a cached number.

An additional 0.9% Medicare tax applies above $200,000 for single filers, $250,000 for married filing jointly, and $125,000 for married filing separately. Owners may deduct the employer-equivalent half of self-employment tax when computing adjusted gross income. Because no employer withholds for you, quarterly estimated payments on Form 1040-ES are usually necessary. See self-employment tax in North Carolina and the self-employment tax calculator.

The $200 Annual Report, Due April 15

North Carolina General Statute §57D-2-24 requires every LLC to deliver an annual report to the Secretary of State. The fee is $200, and filing online by credit card adds a $3 electronic transaction fee. The report is due April 15 of each year following the year the LLC was created, so an LLC organized in 2026 files its first report by April 15, 2027.

At $200, North Carolina's annual report is one of the more expensive recurring LLC filings in the country, and it is charged regardless of revenue — a dormant single-member LLC owes the same $200 as a profitable one. Budget it as a fixed annual line item. An LLC that fails to file risks administrative dissolution by the Secretary of State, which means losing good standing and, if ignored long enough, the entity itself. See North Carolina annual report.

North Carolina State Tax and Licensing

North Carolina does not impose a separate entity-level income tax on a disregarded single-member LLC. The profit passes through and is reported on the owner's North Carolina individual income tax return administered by the Department of Revenue. If the LLC sells taxable goods or certain services, it must register for sales and use tax; if it has employees, it must register for income tax withholding and unemployment insurance. Confirm current rates and registration steps with the Department of Revenue rather than assuming.

North Carolina has no single statewide general business license. Licensing is activity-specific and often local, so a contractor, restaurant, or salon faces requirements a consultant does not. See North Carolina business licenses and the national business license guide. If you operate under a name other than the LLC's registered name, see North Carolina DBA filing and what a DBA is.

Keeping Liability Protection Intact

A single-member LLC's protection is only as good as the separation you maintain. The habits that matter most are unglamorous: keep a dedicated business bank account and never pay personal expenses from it, sign contracts in the LLC's name and in your capacity as member or manager, keep the registered agent current, and file the annual report on time. Undercapitalizing the company or treating its account as a personal wallet is what invites a creditor to argue the entity should be disregarded.

Although North Carolina does not require you to file one, a written operating agreement is worth having even with one member. It records who owns the company, who may sign, what happens on the member's death or incapacity, and how the company is distinct from its owner — exactly the questions a bank, a title company, or a court asks. See how to form an LLC in North Carolina, how to start a business in North Carolina, North Carolina LLC tax filing, trademarking your name, and how to dissolve an LLC in North Carolina when it is time to close.

Frequently Asked Questions

How much does a single-member LLC cost in North Carolina?

$125 to file Articles of Organization, then $200 each year for the annual report (plus $3 for online card payment). A federal EIN is free.

Is it a disregarded entity?

Yes by default. The owner reports the business on Schedule C, E, or F with Form 1040. The LLC is still separate for employment and certain excise taxes.

Do I need an EIN?

Only if you have employees, owe excise tax, or need one for banking or state tax accounts — though most owners get one anyway. It is free from the IRS.

When is the annual report due?

April 15 each year after the year of formation, under G.S. §57D-2-24. Missing it risks administrative dissolution.

Do I owe self-employment tax?

Generally yes — 15.3% (12.4% Social Security plus 2.9% Medicare) once net earnings from self-employment reach $400.

Sources

North Carolina Secretary of State — Business Registration Fees: Limited Liability Companies (Articles of Organization $125; annual report $200; certificate of authority $250; articles of dissolution $30; change of registered agent $5; reserved name $10).
North Carolina Secretary of State — Annual Report Due Dates (April 15 for LLCs).
North Carolina Secretary of State — File an Annual Report ($3 electronic transaction fee for card payment).
North Carolina General Assembly — G.S. §57D-2-24 (annual report for Secretary of State).
North Carolina Secretary of State — Articles of Organization (Form L-01).
North Carolina Secretary of State — Business Registration Division.
IRS — Single Member Limited Liability Companies (disregarded entity; Schedule C/E/F; EIN triggers; employment tax from Jan 1, 2009 and excise tax from Jan 1, 2008).
IRS — Self-Employment Tax (15.3% rate; 12.4% Social Security and 2.9% Medicare; $400 threshold; 0.9% additional Medicare tax thresholds; one-half SE tax deduction).
IRS — Limited Liability Company (LLC) (classification overview).
IRS — Get an Employer Identification Number (EIN is free).
IRS — About Form 2553 (election to be an S corporation under section 1362(a)).
Legal Information Institute (Cornell) — 26 CFR 301.7701-3 (entity classification election).

LegalGlass provides general information for educational purposes and is not legal advice, is not a law firm, and is not a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current amounts with the agencies linked above before acting.