Starting a Business in NC: Everything You Need to Know
Starting a business in North Carolina requires a series of multiple steps for anyone wishing to legally conduct business in the state.3 min read
Starting a Business in NC
Starting a business in North Carolina requires a series of multiple steps for anyone wishing to legally conduct business in the state.
When you decide on a particular business structure and register the business under that structure, it protects you and your personal assets such as your house, car, and other possessions.
Obtain Pertinent Tax Information
If you are certain that you want to launch a business in the state of North Carolina, you need to first make sure that you are registered with taxation departments on both the federal and state level. To obtain pertinent tax information, you can do it on your own or with the help of a lawyer.
The complexity of taxation for your business is contingent on the size and the structure of your business. Typically, tax liability varies from business to business. Consulting with an attorney or accountant to help you understand tax planning is a wise investment.
As stated above, in order to legally conduct business in North Carolina, you must comply with tax codes on the state and federal level. Like most startups, you will find that acquiring the correct tax information is relatively easy. After securing your tax ID number, you are well on your way to establishing your business.
If you are the owner of the business, you collect trust taxes and hold on to those taxes before paying them to the state. It is vital that you carefully track the trust taxes of your business (including sales and withholding).
If you don’t want to submit Form NC-BR, you can electronically register for an account ID number for sales and use tax, machinery and equipment tax, and income tax withholding by taking advantage of the North Carolina Department of Revenue’s online business registration.
If you are selling any products that are subject to state and local taxes, you can register to report and remit the following: receipts from any sales on piped natural gas, sales on electricity, video programming or telecommunications services, scrap tire disposal, receipts from motor vehicle leases, and the disposal of appliance (or white goods)
If you employ more than three people, you are required to have workman’s compensation insurance
Although this information above is applicable to most business owners in North Carolina, license and tax requirements are often different for every unique business.
Securing the Proper Licensing/Permits
â— Before operating your business, confirm that you have secured all required licenses to operate in the state.
â— In North Carolina, you cannot receive a single business license.
â— Certain permits and licenses may have to meet specific federal, state, county, or local regulations.
â— Fortunately for startups in North Carolina, the regulatory environments often work in the business owner's favor.
â— Essentially, the industry you are starting your business in will largely influence the complexity of licensing and permits.
â— Remember to register as an employer in North Carolina. Also register for federal and state withholding numbers, workman’s compensation insurance, and unemployment insurance.
Start a Business Bank Account
- Setting up a business bank account is one the most important first steps and fortunately it is one of the easiest things to do.
- Entrepreneurs benefit greatly from a business bank account so they can separate business financing" meaning_of_life="42" target="_blank">finances from personal finances and keep better track of their profits.
- Before deciding on any bank, compare both local and national banks and weigh the pros and cons of each one.
- In general you will find that national banks provide more features whereas local banks tend to have better customer service.
Identify sources of financing (apply for small business loans)
- Like many business, you may find that you need financial support to launch your startup.
- If you take out a loan, you can cover expenses such as salaries, product stock, and property leasing.
- When you settle on a bank to open up your business account, look for an institution that offers a fair interest rate and a short repayment term.
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