How to Start Your Own LLC in North Carolina

This step-by-step guide explains how to start an LLC in North Carolina—from choosing and reserving a business name to filing formation documents, obtaining licenses, understanding taxes, and meeting ongoing compliance requirements.

1. Choose a Name for Your North Carolina LLC

Selecting the right name for your LLC is both a branding decision and a legal requirement. Your business name should be memorable, clearly reflect what your company does, and comply with North Carolina's naming laws.

Before brainstorming names, take time to clearly define your business purpose, target audience, and long-term vision. Once you have a few name ideas, test them by asking trusted colleagues or potential customers for feedback. It's also wise to check whether matching domain names and social media handles are available to support future online branding.

After narrowing down your options, you must confirm that the name is available. Conduct a business name search through the North Carolina Secretary of State's online database and review similar names to avoid confusion with existing entities.

North Carolina LLC Naming Rules

North Carolina law requires that an LLC name include "Limited Liability Company," "LLC," or "L.L.C." The name must be distinguishable from all other registered businesses in the state. Additionally, certain words are restricted or prohibited, especially those that could imply a connection to government agencies or regulated industries.

To ensure broader protection, you should also search the U.S. Patent and Trademark Office (USPTO) database to confirm the name is not already trademarked at the federal level.

Reserving a Business Name

If you are not ready to file your LLC immediately, North Carolina allows you to reserve a business name for 120 days. Name reservations can be completed online through the Secretary of State's business services portal or submitted by mail.

The standard name reservation fee is $10. In limited circumstances, individuals who have acquired the goodwill of an existing organization may reserve a name for up to ten years, though this option applies only in specific situations defined by state law.

Doing Business As (DBA) / Assumed Business Name

Even after forming your LLC, you may decide to operate under a different name for branding or expansion purposes. In North Carolina, this is done by registering an Assumed Business Name, commonly referred to as a DBA.

Many businesses use assumed names to introduce new product lines or operate multiple brands under one LLC. Having a DBA also allows you to open bank accounts and accept payments using that alternate name.

Assumed business names are filed at the county level with the Register of Deeds in each county where the business operates. The filing fee is typically $26, though it may vary slightly by county.

2. Appoint a Registered Agent

Every North Carolina LLC must designate a registered agent to receive legal documents, tax notices, and official correspondence on behalf of the business.

A registered agent may be an individual resident of North Carolina or a business entity authorized to operate in the state. The agent must maintain a physical street address (not a P.O. Box) and be available during normal business hours.

While some LLC owners choose to act as their own registered agent, many prefer to hire a professional registered agent service to ensure privacy, reliability, and uninterrupted compliance.

3. Decide on Your LLC's Management Structure

North Carolina LLCs can be structured as member-managed or manager-managed. In a member-managed LLC, all owners take part in daily operations and decision-making. This structure is common for small businesses with a limited number of members.

In a manager-managed LLC, one or more managers—who may or may not be members—are appointed to run the business. This option is often used when some members want to remain passive investors.

If your Articles of Organization do not specify a management structure, North Carolina law assumes the LLC is member-managed by default.

4. File Articles of Organization with the North Carolina Secretary of State

To officially form your LLC, you must file Articles of Organization with the North Carolina Secretary of State. This can be done online or by mail.

The Articles of Organization include basic details such as the LLC's legal name, principal office address, registered agent information, and the name and address of the organizer.

The filing fee is $125. Online filings are generally processed within three to ten business days, while mailed filings may take up to three weeks.

Secretary of State Contact Information

Website: North Carolina Secretary of State

Phone: 919-814-5400

Physical Address:
2 South Salisbury Street
Raleigh, NC 27601

Mailing Address:
PO Box 29622
Raleigh, NC 27626-0622

5. Create an Operating Agreement

An Operating Agreement outlines how your LLC will be owned and managed. Although North Carolina does not legally require an Operating Agreement, having one is strongly recommended—even for single-member LLCs.

This document typically covers ownership percentages, management authority, voting rights, profit and loss distribution, procedures for adding or removing members, dispute resolution methods, and record-keeping practices.

Operating Agreements help prevent internal disputes and strengthen liability protection by clearly separating the business from its owners. While templates are available, attorney review is recommended for accuracy and enforceability.

6. Obtain an Employer Identification Number (EIN)

An EIN is issued by the IRS and is required for multi-member LLCs, LLCs with employees, and businesses that open bank accounts or elect corporate taxation.

You can apply for an EIN for free through the IRS website. The application requires identifying a responsible party, who is an individual with control over the LLC's finances and operations.

7. Obtain Required Licenses and Permits

North Carolina does not issue a universal statewide business license. Instead, licensing requirements depend on your industry, location, and business activities.

Certain professions—such as construction, childcare, healthcare, food service, and financial services—require state-level licenses. Local governments may also require zoning permits, signage approvals, or occupancy certificates.

Businesses selling taxable goods or services must register with the North Carolina Department of Revenue to collect and remit sales tax.

Failure to obtain proper licenses can result in fines, penalties, or suspension of business operations, so thorough research is essential.

8. Understand Your North Carolina LLC Tax Obligations

By default, North Carolina LLCs are taxed as pass-through entities, meaning profits and losses are reported on the members' personal tax returns.

Single-member LLCs are taxed like sole proprietorships, while multi-member LLCs are treated as partnerships unless an election is made to be taxed as a corporation.

LLCs may elect C-Corporation or S-Corporation tax treatment, depending on financial strategy and income level. North Carolina's corporate income tax rate remains among the lowest in the country, making corporate elections attractive for some businesses.

Additional Ongoing Requirements

After forming your LLC, you should open a business bank account to keep finances separate and preserve liability protection. Applying for a business credit card can help build business credit and manage expenses.

Business insurance—such as general liability, professional liability, workers' compensation, and commercial auto insurance—helps protect against financial risk.

North Carolina LLCs must also file an Annual Report with the Secretary of State. The report is due April 15 each year, and the filing fee is $200. Failure to file can result in administrative dissolution.

North Carolina LLC FAQs