Your North Carolina LLC name can identify the type of products and services your business will provide; or it may be the name of the founder; or it can be a combination of the two or something else.

In any case, the North Carolina LLC name that you choose must be distinguishable from the name of any other registered North Carolina LLC or other registered North Carolina business entity, such as a North Carolina Corporation or LLP.  The LLC name must also be different from any reserved names on record with the state of North Carolina.  Your North Carolina LLC name must not imply that it was formed for a purpose other than that stated in your Articles of Organization; and your North Carolina LLC name must not be a name that is likely to mislead the public.

The name of a North Carolina LLC must include the word "LLC" or "Limited Liability Company" or an abbreviation of one of these words.

It's important to choose a good name for your North Carolina LLC because if you want to change it after you Form a LLC in North Carolina you will have to file amended Articles of Organization with the North Carolina Secretary of State (and pay a fee).

Every North Carolina LLC must have an address that is physically located in the state of North Carolina.  This address is "registered" with the North Carolina Secretary of State.  The Registered Address is where official and legal correspondence can be delivered.

The individual or company that is registered with the state of North Carolina to receive all correspondence on behalf of the North Carolina LLC is called a "Registered Agent" or "Agent for Service of Process".  You may act as your own Registered Agent, however, many North Carolina LLCs hire a Registered Agent because they don't have a physical address within the state of North Carolina or to provide a distinct level of privacy.

The owners of a North Carolina LLC are called Members - not Partners or Shareholders.  (a North Carolina Limited Liability Company does not issue stock).  Members make all business decisions and realize the financial benefits generated by the North Carolina LLC.  Division of ownership and distribution of profits are decided by private agreement among the Members.  Each North Carolina LLC must have at least one Member.  Members need not live in the state of North Carolina or be citizens of the United States.

Managers are responsible for the day to day operation of the North Carolina LLC.  Members elect or appoint Managers and have the power to remove them.  Managers may or may not be Members of the North Carolina LLC.  Management for your North Carolina LLC may be defined in your Articles of Organization or, more commonly, in an Operating Agreement.

The IRS does not recognize a Limited Liability Company as a classification for federal tax purposes.  North Carolina LLC Members can elect for the IRS to tax the LLC as a sole proprietorship, partnership, C Corporation, or S Corporation.  This decision may be made after the North Carolina LLC is created.  If a single Member North Carolina LLC does not declare a tax classification it is taxed the same as a sole proprietorship.  A multiple Member North Carolina LLC that does not declare a tax classification is taxed as a general partnership.  More specific federal LLC tax information can be found at the IRS web site.

A North Carolina Limited Liability Company is a type of business that is authorized by the state of North Carolina - not by the federal government.  In order to form a LLC in North Carolina you must file Articles of Organization with the North Carolina Secretary of State. The Articles of Organization must include certain specific information about your North Carolina LLC.  If the Articles do not conform exactly to state of North Carolina requirements they will be rejected.  You may subsequently amend the Articles of Organization for your North Carolina LLC but you will have to pay a fee to the state of North Carolina in order to make the changes official.

A Federal Employer Identification Number, also known as a Federal Tax Identification Number, is used by the IRS to identify a business entity.  An FEIN is like a Social Security Number for your North Carolina LLC.  All North Carolina LLCs electing to be taxed as a C-Corporation or S-Corporation are required to have a FEIN.

If you do not elect to have your North Carolina LLC taxed as a Corporation you may still need to get a FEIN if it is composed of multiple members or if you plan to have employees.

If you plan to form a Single Member North Carolina LLC you may not need a separate FEIN for the LLC if you have no employees.  The sole Member of a Single Member North Carolina LLC may be able to use his or her Social Security Number instead of applying for an FEIN.  You may request a FEIN for your North Carolina LLC for banking or state tax purposes, but an FEIN may not be required for federal tax purposes depending on your business circumstances.

An Operating Agreement defines the rules by which your North Carolina LLC will operate.  It is the core document that is referred to when issues concerning your LLC need to be resolved.  Operating Agreements may include requirements for almost anything that involves the management and operation of your North Carolina LLC.  By having an Operating Agreement all Members will be provided with a clear set of rules they have agreed upon thus reducing the likelihood of disagreement in the future.

Items commonly included in an Operating Agreement for a North Carolina LLC:


Although an Operating Agreement is not required in the state of North Carolina, if you plan to form a multiple Member North Carolina LLC it is highly advisable to have one.  Having an Operating Agreement will save you a lot of time and money should conflict arise down the line.  As your North Carolina LLC grows over time, you may amend your Operating Agreement as necessary.

When your North Carolina LLC has an Operating Agreement your business will be governed by your own rules and not some canned business rules created by the state of North Carolina.

It's very important that you have a separate business bank account for your North Carolina LLC.  Mixing personal and business funds may get you in a lot of trouble with the tax man down the line.  It's a good idea to contact the bank before you open a business bank account for your North Carolina Limited Liability Company.  Specific requirements vary from bank to bank. 

In most cases you will need a FEIN, a copy of your North Carolina LLC Articles of Organization, and a resolution identifying authorized signers if those names are not listed in the Articles.

Note that forming a North Carolina LLC doesn't take the place of obtaining a business license, tax registration certificate, or other required business permits.  A North Carolina LLC merely creates an ownership structure that limits the owner's personal liability.  You may still need to take care of getting set up to do business with your local government.

Depending on the nature of the business and the location of your North Carolina LLC you may need to get one or more city business licenses or permits.  The business licenses or permits that are required for your North Carolina LLC vary depending on your business activities and the specific locations within the state of North Carolina in which you want to conduct business.

If your North Carolina LLC will be selling products in North Carolina you may be required to obtain a Reseller's Permit from the appropriate North Carolina state agency.  If your North Carolina LLC will be selling products in North Carolina you will also be responsible for all applicable local and state of North Carolina sales taxes if there are any.

A new North Carolina LLC must file an initial Annual Report by the next 15th of April after the new NC Limited Liability Company has registered with the NC Secretary of State. No NC Annual Report fee is required to be paid for the year in which the North Carolina LLC is first organized. North Carolina LLC Annual Reports may be due for the year in which the NC LLC is organized. If the organization date of the NC LLC is on or before April 15th, the NC LLC is required to file an Annual Report for that year. A North Carolina LLC that forms on April 15th would be required to file an Annual Report for that year. A NC LLC that forms after April 15th will not be required to file an Annual Report until April 15th of the next calendar year.

All North Carolina Limited Liability Companies must file an Annual Report with the NC Secretary of State EACH year.

If a North Carolina LLC files a tax return with the NC Department of Revenue, the NC Annual Report is due at the same time that the North Carolina LLC files its North Carolina LLC tax return with the NC Department of Revenue.

If a North Carolina LLC does NOT file a tax return with the North Carolina Department of Revenue, that NC LLC is required to file an Annual Report with the North Carolina Secretary of State.

A North Carolina LLC that does not file a tax return with the NC Department of Revenue must file its Annual Report with the NC Secretary of State by the 15th day of the fourth month following the end of the NC LLC's fiscal year.

If the end of the North Carolina LLC's fiscal year is Dec 31, the NC Annual Report is due at the NC Secretary of State by April 15 of the following year.