Starting a Business in North Carolina: State Steps, Fees and Local Guides

The state steps

1. Pick a structure. A sole proprietorship needs no state formation filing. An LLC is formed by filing Articles of Organization (Form L-01) with the NC Secretary of State, and the fee is $125 (NC SOS: LLC fees). Whether an LLC should also elect S corporation tax treatment depends on your profit and payroll, so run the numbers with a tax professional first.
2. File the LLC annual report every year. An NC LLC's first annual report is due April 15 of the year after it's formed, then every April 15. The fee is $200 on paper or $203 online by credit card ($202 by ACH) (NC SOS: annual reports).
3. Using a name that isn't your legal name? File an assumed business name certificate. North Carolina requires it before you do business under an assumed name. It's filed with the Register of Deeds in a county where you do business, and one filing can cover every county you list (G.S. 66-71.4; NC SOS: assumed business names). An LLC that operates under a name other than its registered one files one too. The recording fee is $26 in both New Hanover and Brunswick counties.
4. Get an EIN from the IRS if you'll have employees, form a multi-member LLC, or want one for banking. The IRS doesn't charge for it (IRS: get an EIN).
5. Register with the NC Department of Revenue if you'll sell taxable goods or services, or pay employees. NCDOR's online business registration covers sales and use tax and income tax withholding, and there's no fee (NCDOR: business registration). The state sales tax rate is 4.75%, and counties add a local rate: the total is 7% in New Hanover County and 6.75% in Brunswick County (NCDOR: current rates).
6. Hiring? Set up NC withholding and unemployment insurance. Each employee fills out Form NC-4, and you withhold using NCDOR's NC-30 tables (2026 withholding uses 4.09%: the 3.99% rate plus 0.1%). Form NC-3, the annual reconciliation, is due by January 31 (NCDOR: 2026 NC-30). With NC DES, you're generally liable for unemployment tax once you pay $1,500 in wages in a calendar quarter or employ someone in 20 different weeks of a year; you register in NCSUITS (NC DES: am I required to pay?). For 2026, new employers pay 1% on the first $34,200 of each employee's wages (NC DES: tax rate information).
7. Check local rules before you sign a lease or work from home: zoning, any home occupation permit, and the county's business personal property listing (due January 31 in New Hanover and Brunswick). North Carolina cities and towns lost the power to charge a general business privilege license tax on July 1, 2015; the City of Wilmington lists beer, wine and taxicabs as the exceptions (City of Wilmington; Town of Leland FAQ).
8. Plan for income tax. North Carolina's individual income tax rate is a flat 3.99% for 2026 (NCDOR: tax rate schedules). If your NC tax due after withholding and credits is expected to be $1,000 or more, NCDOR expects quarterly estimated payments with Form NC-40 (NCDOR: estimated income tax). Federal self-employment tax applies on top (IRS: self-employment tax).
9. Open a separate business bank account and keep records from day one. Our free invoice generator, mileage calculator and home office calculator use federal rules, so they work for NC businesses too.

Local guides

Somewhere else in North Carolina? The state steps above don't change. For the local ones, ask your county Register of Deeds (assumed name), your city or town planning office (zoning and home businesses) and your county tax office (business personal property listing). The state's Start My Business page is also a good map.

Related free guides

• NC side hustle taxes: gig and 1099 income, NC-40 estimates and sales tax for online sellers.
• NC paycheck calculator: what NC withholding looks like for you or a new hire.
• NCDOR letters explained, if a state notice arrives.
• All free NC tax guides