How to Start a LLC in North Carolina

Are you looking to start your own business in North Carolina? One popular option for entrepreneurs is to form a Limited Liability Company (LLC). This business structure offers the benefits of limited liability protection, pass-through taxation, and flexibility in management. If you're ready to take the plunge and start your own LLC in North Carolina, here's a step-by-step guide to help you through the process.

Step 1: Choose a Name for Your LLC

The first step in forming an LLC in North Carolina is to choose a unique and available name for your business. Your LLC name must include the words "Limited Liability Company" or the abbreviation "LLC." You can check the availability of your desired name on the North Carolina Secretary of State's website.

 Step 2: File Articles of Organization

Once you have chosen a name for your LLC, you will need to file Articles of Organization with the North Carolina Secretary of State. This document officially registers your LLC and includes important information such as the name of your business, the address, and the purpose of the LLC. The State of North Carolina has an official Limited Liability Company Articles of Organization form, Form L-01, which can be found online.

This Form has you provide the name of the company, the organizers of the business, business address, registered agent and owners of the business (this is optional). The organizer of the business does not have to be a member of the LLC, instead is just disclosing the person filing the articles of organization. You will need a registered agent that lives in the state with a valid mailing address. This is the individual or organization that will be served with any legal documents pertaining to your LLC.

The process of filings and organization your LLC is easily completed by following the steps on the Secretary of States’ website. First, you’ll need to go to the Secretary’s website and create an account.

After you have created your account, you’ll be able to start the process of filings the articles of organization and following the steps laid out on the website. You will need to disclose if this is a domestic or foreign organization and which type of entity you wish to establish. Here, we are creating a domestic LLC.

 You will then go through a series of 30 different screens asking the same questions you will find on the State’s form L-01. Once complete you will pay $125.00 and send off your request to organize for approval. Depending on the time of year, you could receive approval within 24 hours, but there have been instances of approvals taking up to 3 weeks.

Step 3: Create an Operating Agreement

While not required by law, creating an Operating Agreement for your LLC is highly recommended. This document outlines the ownership structure, management, and operating procedures of your LLC. Having an Operating Agreement in place can help prevent misunderstandings and conflicts among members in the future.

Step 4: Obtain an EIN

An Employer Identification Number (EIN) is a unique nine-digit number assigned by the IRS to identify your LLC for tax purposes. You will need an EIN to open a business bank account, hire employees, and file taxes. You can easily apply for an EIN online through the IRS website.

By following these steps, you can successfully start your LLC in North Carolina and begin your journey as a business owner. If you have any questions or need assistance with the process, consider contacting Howard Law to ensure that you are setting up your LLC correctly and in compliance with state regulations.