Form a North Carolina LLC in 6 steps: choose a name, appoint a registered agent, file Form L-01 Articles or a Certificate of Organization with the Secretary of State, create an operating agreement, obtain an EIN, and secure required licenses and permits.
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Last Updated: March 12, 2026
Many entrepreneurs consider LLCs to be a “best of both worlds” business structure. They can protect the personal assets of the business owners (who are called “members” in an LLC) like a corporation does, but without the double taxation and excessive red tape.
People in certain licensed professions (such as architects, lawyers, medical doctors, accountants, etc.) who perform a professional service can form a professional LLC, a.k.a. PLLC, in North Carolina. This involves filing different Articles of Organization.

First, choose a name for your limited liability company. Of course, you can’t just pick any name you want. It has to be unique within the state of North Carolina. It also has to follow the naming guidelines for the state.
It’s important to find an available business name that’s in line with North Carolina law. Otherwise, your paperwork could be rejected, and you’ll have to start the process over. Brainstorm business names until you come up with a short list of favorites so you’ll have options if your first choice isn’t available.
There are legal requirements for business names that you must follow in North Carolina. For example, the name can’t contain language that:
The following words can only be used if you can prove that you’re legally qualified to perform the implied professional services:
If you intend to operate as a wholesale business, you can use “wholesale” in your LLC’s name. You’ll have to submit a letter with your North Carolina LLC Articles of Organization to explain how you’ll comply with North Carolina wholesale business laws. Depending on the type of wholesale business, you may need to apply for a local or state business license.
“Bank,” “banker,” “banking,” “cooperative,” “co-op,” “mutual,” and “trust” are off-limits, too. State law forbids banking institutions from forming LLCs. If there are prohibited words you would like to use in your name, you can receive permission to do so by applying to the proper legal authority. If the state approves your request, then you can reserve the name to use at a later date.
Those words or abbreviations (for example, “Inc.”) you sometimes see after a business name are called “designators.” They indicate what kind of legal business entity a company is. In North Carolina, LLCs are required to have one after their name.
By North Carolina law, the name MUST end with one of the following phrases or abbreviations:
North Carolina doesn’t have a bunch of specific requirements for the names of professional LLCs (LLCs organized for businesses that offer professional services like law, medicine, etc.). In fact, naming a professional LLC follows all of the same guidelines that we’ve just discussed. The only unique requirement is that you need to include a different designator: “Professional,” “PLLC, or “P.L.L.C.” are all acceptable designators.
The North Carolina Secretary of State’s office also suggests the following:
Even if your business name is technically different from another, North Carolina law says it must be “distinguishable.” So, if the only differences are articles, conjunctions, prepositions, punctuation, spaces, and the substitution of an Arabic numeral for a word, that’s not enough to make it distinguishable from another name.
For example, say a successful, well-established Outer Banks seafood business is called “Sal’s Shrimp Shack.” You can’t name your new shop “Sal’s Shrimp Shak” or “Sal’s Shrimp Shack & More.”
Did you find an available name you love, but you’re nervous about someone else nabbing it before you can file your LLC paperwork? North Carolina allows you to reserve a business name for 120 days for a fee.
If you plan to do business under any name other than your LLC’s legal name, you’ll need to file a DBA (“doing business as”) name. This isn’t required if you only plan to use your official name, but sometimes businesses use a DBA if they’re launching a new brand or product line and want to market it under a new name. It’s a lot easier than forming a whole new business.
A DBA name is also known as an assumed business name in North Carolina. All assumed business names are filed at the Register of Deeds offices in counties throughout the state. A statewide online database allows you to do an assumed business name search to see if the name you want to use is available.
File your Assumed Business Name Certificate at the office of your local county Register of Deeds. Even if you do business in multiple counties, you only have to file one application. Just designate which counties you plan to operate within on the form.
There’s a filing fee to pay. You can also amend or withdraw your Assumed Business Name Certificate at any time.
Getting a business name that’s also available as a URL means you’ll have a website that’s easier to market. When you find an available domain name you like, it’s wise to secure it before someone else does.
One of the factors in choosing your business name will likely be choosing one that pairs well with an available domain name you can use for your website. If you can’t find any available URLs that are even close to what your desired business name is, you may want to consider another business name.
It’s wise to check as many sources as possible to ensure your desired business name isn’t trademarked. You may also want to pursue getting a trademark of your own for your business name or logo.
A trademark can be a word, phrase, symbol, design, or any combination of such. It’s used to identify your goods as yours and to distinguish your products from others. A service mark is similar but is used for advertising services instead of goods. It also sets your services apart from competitors.
Trademarks can be both federal and state. A federal trademark requires you to apply through the U.S. Patent and Trademark Office, which can be a long, involved process. State trademarks only apply within the borders of your state, but they’re easier and quicker to get.
The Trademarks Division of the Office of the North Carolina Secretary of State handles in-state registrations. They thoroughly examine marks and apply all applicable state and federal laws and examination procedures.
Select a registered agent in North Carolina. By law, limited liability companies must appoint and keep a registered agent. This refers to an individual or business entity that’s responsible for accepting important official notices, such as subpoenas, in person and forwarding them to the business owner.
Under state law, the registered agent must be either a North Carolina resident with a street address in the state or a business entity authorized to do business in North Carolina (N.C.G.S. § 55D-30). The place where the registered agent accepts notices is called the registered office, and it must be a physical address in North Carolina.
You can’t use a P.O. box for the registered office. A process server must be able to deliver notice of a lawsuit in person.
You may think that you want to hold this position yourself, but it can end up being a pain. The registered agent is required to be at the designated office during all normal business hours to receive service of process in person. In addition, being served with a lawsuit in front of clients can be bad for business.
Being your own registered agent or appointing someone you know sounds good until a process server (someone who delivers notification of a lawsuit) can’t find you or your agent when they need to.
This can easily occur if you or your appointee isn’t in the office when the process server comes around. It can also happen if the agent moves or quits and you fail to appoint a new agent or update the Secretary of State office about the new address.
If a process server can’t find the registered agent for your business, a lawsuit against you could go forward without your knowledge, meaning you’ll have no opportunity to defend yourself. That often leads to a default judgment against you.
In North Carolina, you file your Articles of Organization, which officially forms your limited liability company (LLC), with the North Carolina Secretary of State. Here’s how to file your Articles of Organization:
Obtain the Form: You can download the Articles of Organization form (Form L-01) from the North Carolina Secretary of State’s website.
Complete the Form: Fill out the form completely and accurately. You will typically need to provide the following information:
Filing Fee: For the Articles of Organization in North Carolina is typically $128. However, fees can change, so check the current fee schedule on the North Carolina Secretary of State’s website.
Submit the Form:
North Carolina Department of the Secretary of State
P.O. Box 29622
Raleigh, NC 27626-0622
If you want to form a North Carolina PLLC, you’ll use a different form specifically for PLLCs. For this form, you’ll also need to include the purpose for which the PLLC is being formed and attach a certification by the appropriate licensing board that the members of the PLLC are in compliance with the requirements of N.C.G.S. Sections 55B-4(2) and 55B-6.
It’s recommended that you include a cover letter with your documents. You can download a form for the cover letter on the forms section of the North Carolina Secretary of State website. It’s a simple step that helps the filing process go much smoother.
The cover letter includes your contact information and your preferred processing method: regular, same-day, or 24-hour. You’ll note which return method you prefer, either via mail, email, or in person.
Processing times vary, but most filings submitted online take 7 to 10 business days at this time. Filings submitted by postal mail will take substantially longer, approximately 10 to 15 business days. The Secretary of State office calculates processing time based on when they receive a document to when they return it to the filer.
If you want faster processing, you have a couple of options. The Secretary of State offers 24-hour processing for an additional fee and same-day processing for a higher fee. For the same-day processing, they must receive your paperwork by noon.
Some new business owners, especially if it’s near the end of the calendar year, will delay their LLC filing date to January 1 of the coming year. This way, they can avoid the hassle and cost of having to pay taxes on their LLC in the current year. This is especially true if the future LLC owners don’t need to establish the company right away.f
You only need to file your Articles of Organization once. But if any of the original information needs to be updated, altered, or expanded, your business is required to inform the state about the changes.
You would record these changes by filing North Carolina Articles of Amendment and paying a filing fee. If your Articles of Organization isn’t current, it could impact your ability to get a North Carolina Certificate of Existence (also called a “Certificate of Good Standing”). This document isn’t required to conduct business, but it’s important for business accounts, members, and potential investors. Basically, failing to keep your business up to date with state requirements can limit your LLC’s potential future growth.
Make an operating agreement for your North Carolina LLC. While not required by state law, creating an LLC operating agreement is one of the most important things you’ll do when forming your LLC. This document sets the rules for how your company is going to operate so that everyone involved knows what to expect and how things will work.
Good operating agreements address the following questions and more:
There are many benefits to creating an operating agreement. For example:
Your operating agreement helps your business in many ways. Even though the North Carolina government doesn’t require the agreement, others may request to see it. You may need to show it to:
It’s a good idea. Many things in operating agreements are intended to avoid disputes among the LLC members, so you may think you don’t need one for a single-member LLC. But an operating agreement can benefit you even if you’re the sole owner.
Potential lenders and investors, future business partners, and others may want to see your operating agreement. Some banks won’t let you open a business bank account for your LLC without one. Your operating agreement can also spell out what you want to happen to the business if you die or become incapacitated.
Further, if you end up in court, having an operating agreement will help further demonstrate that you and the business really are separate entities, thus giving you better personal asset protection. Personal and business assets are kept farther apart.
Get an Employer Identification Number (EIN) for your LLC. To identify a business, the federal government uses an EIN. Each business has a unique EIN assigned to it. It’s also known as a Federal Employer Identification Number (FEIN) or federal tax identification number. The Internal Revenue Service (IRS) uses your EIN for tax purposes.
You’ll use your EIN to open a business bank account, set up retirement plans, apply for financing, file taxes, and stay in good standing overall. You’re also required by law to have one if your LLC has more than one member or has employees.
You get your EIN from the IRS by going to their website and filling out an application. You can also do it by postal mail by completing a form and sending it to the Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999. It will likely take four weeks, whereas the online version is immediate.
There’s a very good chance that your North Carolina LLC will need at least one license or permit. But it’s not quite as simple as saying, “File this form with the North Carolina Secretary of State.” For this step, you’ll need to dig in and do some research.
For starters, some LLCs need to get federal licenses. For example, suppose you’re going to create the best whiskey, brandy, or bourbon for an iconic Cherry Bounce cocktail. In that case, you’d need to get a license from the Alcohol and Tobacco Tax and Trade Bureau since you’d be manufacturing and selling alcohol. Meanwhile, aviation businesses would need to get a license from the Federal Aviation Administration. If your LLC involves a heavily regulated activity, there’s a good chance you’ll need a federal license, but it’s your responsibility to research and know for sure.
Next, you’ll have to check state-level licenses. Unlike some states, North Carolina doesn’t have a state-level general business license. But there are other state-level requirements you might have to fulfill. For example, you’ll need to complete the Business Registration Application with the Department of Revenue, which sets your business up for sales and use taxes and other tax responsibilities.
Local licenses are another important category to cover. North Carolina municipalities generally have their own unique licensing requirements, such as general business licenses or industry-specific permits. For example, Raleigh doesn’t require a general business license, but it does administer licenses for selling beer or wine in city limits, selling using a pushcart, being a street performer, and more. Concord takes a very similar approach. Your city or county (or both) could have similar requirements.
You may also need to get zoning permits for your location. Similarly, if you’re working out of your home, you may be required to get a home occupation permit. Ultimately, it’s your responsibility to research your local requirements.
Last but not least, you’ll need to research licenses related to your industry or profession. North Carolina has hundreds of occupational licenses and permits that are state-regulated. This includes common professions like law, nursing, and social work, but it also covers more niche businesses like commercial fishing, falconry, and more.
Long story short: you’ll need to do plenty of research to ensure you get all of the licenses that apply to your business — your unique industry, services, and business location.
Licensing is extremely important for a PLLC in North Carolina. It’s your responsibility to ensure that everyone who offers your company’s professional service is appropriately licensed at all times, including members and employees. But remember that these professional licensing requirements don’t overwrite your other state and local licensing requirements. You’ll still need to get those licenses, too.
After successfully forming your North Carolina LLC, there are critical steps to ensure your business operates smoothly and remains in compliance with state regulations. Here’s a guide to the essential tasks that should follow your LLC’s formation:
Open a business bank account: Separating your LLC’s finances from your personal accounts is crucial for maintaining financial clarity and legal protection. Open a dedicated business bank account to manage income, expenses, and transactions related to your LLC.
File annual reports: In North Carolina, LLCs are required to file an annual report with the Secretary of State. This report confirms your LLC’s current information, including the registered agent and office address. The deadline for filing is on or before April 15th each year, starting from the year following your LLC’s formation.
Secure business insurance: Protect your LLC and its assets by obtaining the necessary business insurance coverage. Common types include general liability insurance, professional liability insurance, workers’ compensation insurance, and property insurance, among others. The specific insurance needs can vary based on your business activities and industry.
Stay informed about regulations: Keep up to date with state and local regulations, especially those relevant to your industry. Being aware of changing laws and compliance requirements helps ensure that your LLC operates within the legal framework.
Maintain records: Keep accurate records of your LLC’s financial transactions, contracts, and important documents. Organized record-keeping simplifies tax reporting, financial analysis, and regulatory compliance.
Pay state taxes: Fulfill your North Carolina state tax obligations, including income tax, sales tax (if applicable), and any other relevant taxes. Register for tax accounts as needed and file returns on time.
Comply with employment laws: If your LLC has employees, adhere to federal and state employment laws, including wage and hour regulations, employee benefits, and workplace safety standards.
Federal Taxes
By default, an LLC with only one member is taxed as a “Disregarded Entity” at the federal level, which is the same as being taxed as a sole proprietorship. This means that profits aren’t taxed at the business level, but only when they become the member’s income.
LLCs with multiple members are taxed as a partnership by default. As with a single-member LLC, the income is taxed at the individuals’ level and not the business’s. This avoids the “double taxation” that corporations pay, in which profits are taxed at the corporate level and again when they’re paid out to the owners (“shareholders”).
Single-member LLCs don’t have to file a separate federal return for their LLC. They report the LLC income on their personal income tax return (Form 1040). But LLCs with multiple members must file a separate information federal return for the LLC, Form 1065. Then each LLC member reports their share of the profits on Schedule K-1 and attaches it to their own personal federal tax return.
LLCs also have the option to be taxed as corporations. Some LLC members choose to classify their businesses as an S corporation, which can be advantageous in some cases. In particular, many LLCs elect to be taxed as S corporations because it can save the members money on self-employment taxes.
State Income Taxes
When it comes to state income tax and your LLC, North Carolina treats LLCs the same way as the federal government. The LLC itself doesn’t pay state income taxes on its profits, just the individual members.
Sales and Use Tax
North Carolina imposes sales and use tax on goods sold within the state. Many local governments also impose a sales tax for items sold within their jurisdiction. Companies collect state and local sales tax to remit to the taxing authority.
The state sales tax rate as of 2023 is 4.75%. Counties add their tax rate to the state tax rate to calculate the total tax rate. Some items sold in North Carolina are subject only to state sales tax. Other items may be subject to a combined general tax rate or a miscellaneous rate.
Unemployment Tax
A small business in North Carolina must pay unemployment insurance tax if its gross payroll is at least $1,500 in a calendar quarter or if it employs at least one person during 20 different weeks in a calendar year. In addition, other companies may be subject to unemployment tax. A complete list is available online at the North Carolina Department of Commerce website.
Companies register with the Division of Employment Security of the North Carolina Department of Commerce to file and pay unemployment taxes. Companies create an online account to manage their unemployment taxes.
Excise Tax
Excise taxes are charged on specific items sold within North Carolina. The tax is in addition to sales and use tax. Not all items are subject to an excise tax. Items subject to excise tax include, but are not limited to, cigarettes, cell phone plans, alcohol, real estate, and gasoline.
Local Taxes
In addition to federal and state taxes, you may be responsible for local taxes, which could include taxes levied by your county, city, school district, etc. You’ll need to check with all your local taxing authorities to determine what you’re responsible for.
The benefits of forming an LLC include:
Doing business in North Carolina comes with its own set of benefits. For example:
In North Carolina, LLCs can take on different forms to suit the needs of various businesses. Here’s a brief description of each type of LLC:
Single-Member LLC (SMLLC): A single-member LLC is an LLC owned by a single individual or entity. It offers liability protection for the owner’s personal assets while simplifying management, as there’s only one member. Income and losses are typically reported on the owner’s personal tax return.
Multi-Member LLC: Multi-member LLCs have two or more owners, known as members. Each member’s investment, share of profits, and management responsibilities are defined in the LLC’s operating agreement. Like SMLLCs, multi-member LLCs provide personal liability protection for members.
Manager-Managed LLC: In a manager-managed LLC, members designate one or more managers to handle the day-to-day operations and decision-making of the LLC. This structure is suitable when members prefer a hands-off approach to management.
Member-Managed LLC: In contrast, a member-managed LLC allows all members to actively participate in the management and decision-making of the business. This structure is common in small, closely-held LLCs where all members want a say in operations.
Professional LLC (PLLC): A professional LLC is reserved for licensed professionals, such as doctors, lawyers, architects, and accountants. It allows professionals to form an LLC. Members must hold the appropriate professional licenses.
Foreign LLC: A foreign LLC is an LLC originally formed in another state but registered to do business in North Carolina. Foreign LLCs must comply with state regulations to operate legally within North Carolina.
Domestic LLC: A domestic LLC is one formed in North Carolina to conduct business within the state. It’s the most common type of LLC for businesses established in North Carolina.
No, North Carolina doesn’t allow Series LLCs. This business structure has an “umbrella” LLC under which one or more LLCs are organized. It’s a relatively new way to structure an LLC, and not all states allow them at this time.
In addition to LLCs, North Carolina entrepreneurs have several options when it comes to selecting a business entity to operate their ventures. Here are some of the most common types of business entities available in the state:
Sole Proprietorship: A sole proprietorship is the simplest form of business, where an individual operates and owns the business personally. The owner is personally liable for business debts and obligations.
General Partnership: In a general partnership, two or more individuals or entities manage and own the business together. Partners share profits, losses, and management responsibilities. Partners in a general partnership have personal liability for business debts.
Limited Partnership (LP): A limited partnership consists of both general partners (with management responsibilities and personal liability) and limited partners (who invest capital but have limited liability). Limited partners are not involved in day-to-day operations.
Corporation: A corporation is a separate legal entity from its owners (shareholders). It offers limited liability protection to shareholders, meaning their personal assets are generally shielded from business liabilities. Corporations can be C corporations (subject to double taxation) or S corporations (pass-through taxation).
Limited Liability Partnership (LLP): An LLP is typically formed by licensed professionals, such as lawyers or accountants, who want to work together but maintain personal liability protection. Each partner is not personally liable for the negligence or misconduct of other partners.
Professional Corporation (PC): Similar to a regular corporation, a professional corporation is formed by licensed professionals, such as doctors, dentists, or engineers.
Nonprofit Corporation: Nonprofit corporations are organized for charitable, educational, religious, or other nonprofit purposes. They are exempt from certain taxes and often seek donations and grants to support their missions.
Benefit Corporation: Benefit corporations are a relatively new business entity that incorporates social and environmental goals into their mission. They are required to consider the impact of their decisions on society and the environment, not just shareholder profit.
To dissolve your LLC in North Carolina, you’ll need to fill out an Articles of Dissolution form and submit it to the North Carolina Secretary of State’s office. There is a filing fee for dissolution.
North Carolina Department of the Secretary of State P.O. Box 29622 Raleigh, NC 27626-0622
To reinstate a North Carolina LLC after dissolution, fill out an Application for Reinstatement form and submit it to the Secretary of State’s office with the required filing fee.
Once you’ve finished the steps above, you’re the new owner of a limited liability company! You’ve taken the first steps to becoming the entrepreneur you’ve been wanting to be. But there’s a lot more to know than just how to start an LLC in NC. Our business experts can also give you long-term business support to help start, run, and grow your company.
So, if the paperwork of starting a business feels overwhelming, we can help. Let us take care of LLC formation, compliance, and more. That way, you can get back to running your dream business, whether it’s a recruiting agency in Raleigh or a moving company in Asheville.
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North Carolina LLC FAQs
Yes, a foreign LLC can conduct business in North Carolina. However, the state law requires that it obtains a Certificate of Authority, specific to its entity type, from the NC Department of the Secretary of State Business Registration Division. See the Foreign Business section of the North Carolina Secretary of State page for more information.
Most North Carolina PLLCs can only provide one type of professional service. However, there are along several specific combinations of professional services that the state will allow to form a PLLC together.
You don’t have to list a physical address location for the LLC’s principal office, but you’ll need to list the names and business addresses of all those executing the Articles of Organization. You’ll also need a physical street address in North Carolina for the registered agent.
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Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. For specific questions about any of these topics, seek the counsel of a licensed professional.
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