The contents of this article do not constitute legal advice. Every entity’s situation is different. If you are unsure about your situation, consult an attorney.

LLCs are the Goldilocks option for small businesses. You get the personal liability protection that is lacking in a sole proprietorship without the complex overhead of a C-Corp. Not too big, not too small, just right.

Getting started in NC is easy.

  1. Go to www.sosnc.gov/online_services/account/register and create an account.
  2. Go to www.sosnc.gov/online_filing/filing/creation and answer a few basic questions before starting online filing.
  3. Online filing is a convenient way to fill out form Form L-01, unless you’re the type that prefers pen and paper.
  4. The questions are straightforward - answer them, add your signature, review the document, and pay the registration fee ($125)
  5. Congratulations on your new LLC. 🍾 J/K Now you wait.

There will be a turnaround time between the time you file and the time your LLC is registered. For me, it was about 20 days. In the meantime, browse some of the free resources provided by Rural Rise NC. Rural RISE offers you an easy way to connect with professional resources—funding sources, mentors, business counselors and more.

But wait! Where’s my EIN?

Filing for your LLC is the first step in creating your company. However, you still (probably) need to get a Tax ID number - also called an Employer Identification Number (EIN). You need one if you plan to open a bank account for your company. While this may not be strictly necessary if you are a sole member LLC, it is a good idea to keep your business expenses separate by creating a business bank account. Thankfully, the IRS makes applying for one easy with an online tool found at https://www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number

Additionally, in NC, the Department of Revenue assigns their own numbers. You may or may not need a State Tax ID depending on your business activities. Consult a lawyer or tax professional to determine if you need a State Tax ID. Generally speaking, you need a State Tax ID (also known as the NC Sales and Use Tax number) if you:

  • Sell taxable goods or services in NC
  • Have employees in NC (for state income tax withholding).
  • Are liable for excise taxes or use taxes.

Conclusion

Starting a business may seem intimidating, but all in all, it is pretty straightforward. It’s a smart move to protect yourself from liability and it legitimizes your venture. With an LLC, an EIN, and a State Tax ID number (if necessary), you are well on your way to the fun part - operating and growing the business.