How to Form an LLC in North Carolina

North Carolina keeps its LLC rules in one place. Here is what the state wants in your Articles, what it costs, and what comes after.

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North Carolina lays out its LLC rules in plain instructions. The state tells you what goes in the Articles of Organization. It tells you who can be a registered agent. It sets the fees on one list. Follow the steps below and you will know what the state wants at each point. If you are still weighing the choice itself, start with whether an LLC is right for you. The basics of forming one, in any state, are here.

What forming an LLC in North Carolina involves

Forming an LLC in North Carolina means filing Articles of Organization with the Secretary of State. The filing fee is $125.00. Before you file, you pick a name that meets state rules and appoint a registered agent who lives in North Carolina. After you file the Articles, you keep up with the state's yearly report. The whole path is short. Each step has its own rules, and North Carolina states them all.

Step 1: Choose a name that meets North Carolina's rules

North Carolina's instructions say the company name must include a limited liability company ending required by N.C.G.S. §55D-20. That law sets the endings the state accepts. Pick your name with that ending from the start. A name that misses it will not pass.

Check that the name is free to use before you build anything on it. Another company may already hold it. If you are not ready to file, the state lets you hold the name for a while. That is the next step.

Step 2: Reserve your name (optional)

You do not have to reserve a name. It is an option for owners who need time before they file. North Carolina's Secretary of State lists a $10.00 fee for a limited liability company Application for Reserved Name.

Ten dollars buys you the name while you get the rest of your plan in order. Skip this step if you are ready to file right away.

Step 3: Appoint a North Carolina registered agent

Every North Carolina LLC needs a registered agent. The state's rules are clear about who qualifies. North Carolina says a registered agent must reside in North Carolina, and you may be your own registered agent if you live in NC.

The agent's address has rules too. North Carolina says a registered agent's business office address must be identical with the registered office address. A registered mailing address may be a PO Box address.

The agent must want the job. North Carolina says a registered agent must agree to act as your registered agent. The work is narrow. North Carolina says the sole duty of a registered agent is to forward any notice, process or demand to the entity's last known address. Acceptance of documents at the agent's registered office is considered legal notice. The agent must forward the documents to the business in a timely manner.

That is why the job matters. North Carolina says having a current registered agent guarantees that legal documents and notices can actually be delivered to the business. Want more on the role in general? Read about an LLC's registered agent.

Step 4: Prepare and file your Articles of Organization

The Articles of Organization are the form that creates the LLC. North Carolina's instructions say to enter the complete street address of the registered office and the county where it is located. Get that right.

The form can hold more than the basics. North Carolina's instructions say the articles of organization may contain any provision not inconsistent with law, including matters permitted in the operating agreement. If you and your co-owners want terms written into the Articles, this is where they go.

You can also delay your start. North Carolina's instructions say a delayed effective date may be specified up to and including the 90th day after the day of filing. Use it if you need the company to begin on a set day.

Two more points from the state's instructions. The document may, but need not, contain an acknowledgment, verification, or proof. And the document must be signed by all persons listed.

North Carolina's Secretary of State lists a $125.00 fee for limited liability company Articles of Organization. That is the main cost of forming the company. For a look at how fees compare across states, see the state filing fee for an LLC.

Step 5: File your North Carolina annual report

The state does not forget about you after formation. North Carolina requires each Business Corporation, LLC, LLP and LLLP to file an annual report with the Secretary of State. For LLCs, North Carolina says a limited liability company's annual report is due on April 15th of each year after the year of creation.

North Carolina's Secretary of State lists a $200.00 Annual Report fee for limited liability companies. That is more than the fee to form the company, so plan for it each year. North Carolina's page says the process to file annual reports online is simple. For questions, the state's page says to refer to the Annual Report Filing Manual and the YouTube Video about annual reports. More on yearly filings in general is in our page on the annual LLC report.

What it costs to form and maintain a North Carolina LLC

Here is the fee list from North Carolina's Secretary of State:

  • $125.00 for limited liability company Articles of Organization
  • $10.00 for an Application for Reserved Name
  • $200.00 for the Annual Report
  • $5.00 for a Statement of Change of Registered Agent and/or Registered Office
  • $50.00 for an Amendment of Articles of Organization
  • $30.00 for Articles of Dissolution
  • $100.00 for reinstatement following administrative dissolution
  • $15.00 for a Certificate of Existence

A basic formation runs $125.00. Add the $200.00 report each year after. The other fees apply only when you file the documents they name.

Changing your registered agent or amending your LLC later

Things change after formation. North Carolina's Secretary of State offers a form to change a registered office or registered agent for a business entity.

Keep that information current. North Carolina says the entity must keep the registered agent information updated. It must give the Secretary of State up-to-date contact information about the agent. Miss that duty and it costs you. North Carolina says not updating registered agent information will provide the Secretary of State with grounds for administrative dissolution.

For bigger changes, North Carolina's Secretary of State offers a form to amend articles of organization for a North Carolina LLC. The fee is $50.00. The state also offers a form to correct minor errors in a filed document. It offers one to convert an existing business into a North Carolina LLC. And it offers one to amend articles so an LLC becomes a PLLC.

Agents can quit too. North Carolina's Secretary of State offers a form for a registered agent to resign as registered agent. Held a reserved name you no longer need? The state offers a form to transfer a reserved name to a new applicant.

Forming in another state? We have guides for forming an LLC in Georgia and forming an LLC in Texas. If you are choosing where to form, see our page on the best place to form an LLC.

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