North Carolina is known as the “Fish Town” and it is the 9th most populous state in the USA. Bordered by the Atlantic Ocean, North Carolina is a major trading point in USA and a preferred business destination for numerous investors around the world. We have prepared a general guide to company incorporation in North Carolina and we invite investors to see and understand the main requirements of the business conduct in the American state. Our company formation specialists in USA are here to offer the necessary guidance and support at the time of company registration in North Carolina.

Setting up an LLC in North Carolina

Starting a business in USA and developing the operations in North Carolina may represent a successful opportunity not only for experienced entrepreneurs, but also for the ones at the beginning of the road. A limited liability company in North Carolina can be registered with the Business Division of the North Carolina Secretary of State as soon as the name is chosen and the documents of incorporation are provided. The Articles of Association is the main document of an LLC in North Carolina and provides detailed information about the owners, their nationality, the capital involved, the business address, the activities, the board of directors and the responsibilities of each member.

Please bear in mind that an LLC in North Carolina must have a registered agent who represents the firm, accepts and forwards the documents of the company. It is important to know that the registered agents must have residency in North Carolina and, if you do not want a natural person to represent your business, you can appoint a company at any time. We remind foreigners that our company formation agents in USA can act on behalf of your limited liability company in North Carolina and can ease the registration process with the authorities in charge.

Sign an operating agreement for your LLC in North Carolina

Most states in USA do not impose the condition of having an operating agreement for newly-registered businesses, but, if you want to set up an LLC in North Carolina, you may consider signing such document. This is an internal paper which offers information about the liabilities of the owners, their voting rights, powers and duties in the firm.

Getting the EIN in North Carolina

Companies registered in North Carolina are seen as taxpayers and, in this sense, an Employer Identification Number is necessary. This is a federal tax ID issued by the IRS (Internal Revenue Service) through the local offices in North Carolina. We mention that companies must hire an accounting firm to deal with the bookkeeping, payroll and related services. We remind that our team of advisors are at your disposal with information in this sense, and can offer guidelines if you want to start a company in USA.

Taxes in North Carolina

The sales tax in North Carolina is set at 4.8%. It is good to know that there are no city sales taxes imposed by municipalities in this state. As for the income tax in North Carolina, this is set at a rate of 5.75%, regardless of the filing status and the taxable income of taxpayers. Taxpayers in North Carolina can choose to itemize their deductions, meaning that qualified expenditures can be withdrawn.

Annual reports for companies in North Carolina

Limited liability companies established by foreigners in North Carolina need to file the annual report with the Secretary of State, the same institution that issues the certificate of incorporation for firms in this state. Please observe that specific fees might be imposed for filling the annual report in North Carolina.

Information about the economy of North Carolina

Just like the other most developed states in USA, North Carolina has a diversified economy sustained by the production of tobacco, furniture and textile and also by the well-developed agriculture. Compared to other states in USA, a great advantage of North Carolina is linked directly to the Atlantic Ocean exits through which the hydroelectric power supply in the state has been developed, and therefore sustaining the overall economy. Raleigh is the capital of North Carolina and an important business destination for both locals and foreigners. Companies can be set up in other cities like Charlotte, Greensboro, Asheville, Wilmington, Fayetteville, or Concord and can benefit from a multitude of advantages in the business field.

The corporate income tax in North Carolina is set at a flat rate of 3% and the good news for business owners in this state is that, starting from January 2019, the tax will be lowered at a 2.5% rate. Our company formation agents in USA can offer information about the taxes for companies in North Carolina and are at the disposal for overseas investors who are interested in starting a business in USA.

What is the franchise tax in North Carolina?

The privilege of having a business in North Carolina is described by the franchise tax which is applicable for traditional and S corporations’ net worth. For example, S corporations are subject to a minimum franchise tax of $200 on the first $1,000,000. For a better understanding of the tax regime in North Carolina, we invite you to talk to our team of consultants in USA. They can also help you open a business in USA, in respect with the requirements of the local authorities and laws.

What is the sales tax in North Carolina?

The standard sales tax in North Carolina is set at 4.75% for goods and services meant for sale purposes in this state. Municipalities in North Carolina can impose their own sales tax which cannot exceed 2.25%.

The capital gains tax in North Carolina

Treated as regular incomes, the capital gains are levied at a flat rate of 5.49%. This tax rate is applicable for short-term and long-term capital gains in North Carolina.

Other tax facts for North Carolina

Foreigners or local entrepreneurs who would like to start a business in North Carolina should observe the tax regime for their companies:

• limited liability companies are seen as pass-through entities and the taxes are imposed on the distributed income for each individual;
• if your company has establishments in other states besides North Carolina, the income registered there will be levied in accordance with the tax regime;
• the personal income tax in North Carolina is set at a flat rate of 5.75%;
• there is no estate tax and no inheritance tax imposed in North Carolina since 2013.