How to Form a Limited Liability Company in North Carolina

Start an LLC in North Carolina in 5 Easy Steps

Step 1: Give Your North Carolina LLC a Name
Step 2: Select a Registered Agent.

Step 3: File the Articles of Organization.

Step 4: Draft an Operating Agreement.
Step 5: Obtain an EIN

It is simple to form an LLC in North Carolina.

To establish an LLC in North Carolina, you must submit the Articles of Organization with the North Carolina Secretary of State, which costs $125. You may apply both online and by mail. The Articles of Organization are the legally binding documents that establish your North Carolina limited liability business.

STEP 1: Give your North Carolina LLC a name.

The first and most significant step in forming an LLC in North Carolina is deciding on a name. Make certain that the name you chose conforms with North Carolina naming rules and is readily searched by prospective customers.

1. Follow the naming conventions:

The word “limited liability corporation” or one of its acronyms must be in your name (LLC or L.L.C.).
Your LLC’s name cannot include terms that may be confused with a government organization (FBI, Treasury, State Department, etc.).
Restricted terms (e.g., bank, attorney, university) may need extra documentation and the participation of a licensed professional, such as a doctor or lawyer, in your LLC.
Your name must be distinct from any other limited liability business, corporation, limited liability partnership, or limited partnership in North Carolina.

2. Does the name exist in North Carolina? Do a name search on the State of North Carolina’s website to ensure that the name you choose isn’t already used.

3. Is the URL accessible? We propose that you investigate if your company’s name is accessible as a web domain. Even if you don’t intend to create a company website right away, you may wish to purchase the URL to prevent others from doing so.

STEP 2: Select a North Carolina Registered Agent

You must name a registered agent for your North Carolina LLC.

What exactly is a registered agent? A registered agent is a person or corporate organization that receives vital tax forms, legal papers, lawsuit notices, and other government communication on your behalf. Consider your registered agent to be your company’s point of contact with the state.

Who is eligible to be a registered agent? A Registered Agent must be a North Carolina citizen or a company, such as a registered agent service, that is permitted to do business in North Carolina. You may choose someone from your organization, even yourself.

STEP 3: Submit the Articles of Organization for the North Carolina LLC.

You must complete Form L-01 – Articles of Organization with the Secretary of State to register your North Carolina LLC. You may apply online, via mail, or by uploading a PDF file.

STEP 4: Draft an Operating Agreement for a North Carolina LLC.

Although an operating agreement is not needed in North Carolina, it is a good practice to have one.

What exactly is an operating agreement? An operating agreement is a legal document that outlines an LLC’s ownership and running processes.

Why are operating agreements necessary? A detailed operating agreement guarantees that all firm owners are on the same page and decreases the likelihood of future disagreement.

STEP 5: Apply for a North Carolina LLC EIN.

What exactly is an EIN? EIN is an acronym that stands for Employer Identification Number. EINs are nine-digit numbers provided by the Internal Revenue Service (IRS) to companies to assist them be identified for tax reasons. It is basically a business’s Social Security Number.

An EIN is also known as a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN) (FTIN).

Why do I need an EIN? An EIN is necessary in order to:

Establish a business bank account.
Filing and managing federal and state income taxes
Employ people

What if my single proprietorship already has an EIN? When transitioning a sole proprietorship to an LLC, the IRS demands a new EIN.

Where can I get an EIN? The IRS will provide you an EIN for free. Obtaining an EIN is a simple procedure that may be completed online or by mail.