How to Start an LLC in North Carolina (Step-by-Step Guide)
North Carolina is a business-friendly state for a number of reasons. Entrepreneurs in NC can choose from several different business entity structures, but one of the most popular is the limited liability company or LLC. In this guide, we will discuss how to start an LLC in North Carolina.
In NC, the process of initial business formation is handled by the North Carolina Secretary of State. The primary document that needs to be filed is the Articles of Organization – although there is more to it than just that. Below, find a step-by-step guide to starting a North Carolina limited liability company.
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Forming an LLC in North Carolina requires filing Articles of Organization with the NC Secretary of State and paying a $125 filing fee. North Carolina’s online filing system makes the process straightforward — most applications are processed within 2-3 business days.
Follow these steps to start your North Carolina LLC in 2026.
How to Start an LLC in North Carolina (6 Steps)
Step 1: Name Your North Carolina LLC
Your LLC name must be distinguishable from other NC entities. The name must include “Limited Liability Company,” “LLC,” “L.L.C.,” or “Ltd. Liability Co.”
Search the NC Secretary of State business search to check availability. Name reservation is available for 120 days for $30.
Step 2: Choose a Registered Agent
North Carolina requires a registered agent with a physical NC address. Our recommendation: Northwest Registered Agent ($39/year).
Step 3: File Articles of Organization
File online through the NC Secretary of State’s online portal.
- Filing fee: $125
- Processing time: 2-3 business days (online), 1-2 weeks (mail)
Step 4: Create an Operating Agreement
North Carolina doesn’t require an operating agreement, but having one is recommended for liability protection and governance.
Step 5: Get an EIN
Apply for a free EIN from the IRS.
Step 6: File Your Annual Report
North Carolina requires an annual report filed by April 15 each year. Fee: $200.
North Carolina LLC Costs
| Cost | Amount | Frequency |
|---|---|---|
| Articles of Organization | $125 | One-time |
| Annual Report | $200 | Annual |
| Registered agent service | $39-$299 | Annual |
| EIN | $0 | One-time |
Total first-year cost: $125-$424. Ongoing annual cost: $239-$499. The $200 annual report fee makes NC somewhat expensive for ongoing maintenance. See our LLC costs by state guide.
North Carolina LLC Taxes
- State income tax: 4.5% flat rate (reduced from 4.75% in 2024)
- Sales tax: 4.75% state rate, plus local taxes (typically 6.75-7.5% total)
- Federal taxes: Standard pass-through taxation
Frequently Asked Questions
Why is North Carolina’s annual report so expensive?
At $200/year, North Carolina has one of the highest annual report fees. This is a flat fee that applies to all LLCs regardless of size. However, North Carolina’s filing fee ($125) and income tax rate (4.5%) are moderate.
How long does it take to form an LLC in North Carolina?
Online filing takes 2-3 business days — one of the fastest processing times in the country.
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