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Perhaps you are hoping to form an LLC in NC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in North Carolina.
On this page, you’ll learn about the following:
North Carolina LLC Cost of Filing
Here are the costs involved in forming an LLC in North Carolina.
Cost of Filing Formation Certificates
The North Carolina Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the North Carolina Secretary of State.
North Carolina Domestic LLC
- Online Filing costs $125.
- Annual Report filing costs $200
- Name Reservation fee costs $30
- By Mail: Fill out the application form, and send it to NC Secretary of State Business Registration, P.O. Box 29622, Raleigh, North Carolina 27626-0622. Costs $125.
North Carolina Foreign LLC
- Online Filing costs $250.
- Annual Report filing costs $200
- Name Reservation fee costs $20
- By Mail: Fill out the application form, and send it to NC Secretary of State Business Registration, P.O. Box 29622, Raleigh, North Carolina 27626-0622. Costs $250.
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
North Carolina LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in North Carolina, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
LLC Service | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK  | $0 + State Fees |
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Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the North Carolina Department of Revenue for regulatory boards or agencies requiring licensing.
Taxes payable to North Carolina Department of Revenue
An LLC in North Carolina has to pay several State as well as Federal Taxes at the stage of formation & during its operation. Read this article to know more about these taxes. The North Carolina State Department of Revenue charges several taxes on an LLC. The two main State Taxes are:
State Income Tax
An LLC owner has to pay state tax on any amount he draws via his LLC. The earnings are taxed through the personal tax return. The standard income tax rate in North Carolina is 5.25%. One can apply for all the standard allowances and deductions.
State Sales & Use Tax
Every LLC which is a service provider or is a seller of tangible goods is bound to the sales & use tax in North Carolina. The LLC has to collect taxes & then pay those to the North Carolina Department of Revenue. The Sales & Use Tax is different in different regions, counties, & cities.
The current state sales & use tax rate on LLC in North Carolina is 4.75%
Federal Self-Employment Tax
As the name suggests, Federal Self-Employment Tax is paid by all the LLC Business members or managers. This kind of tax applies to all the earnings a member withdraws from the business.
The Federal self-employment tax rate in North Carolina is 15.3 percent.
Federal Income Tax
The Federal Income Tax is calculated on the basis of the earnings, the income tax bracket your LLC falls, the deductions, & the manner/ mode of filing.
Federal Income Tax is levied on all the profits your LLC makes minus the deductions & allowances such as Healthcare or Retirement Plans.
Employee & Employer Taxes
If you have several employees who draw monthly salaries, there will be some added Employee-Employer taxes. These tax implications vary, depending on various factors, e.g., the amount, number of employees, etc.
Cost Comparison Between States
North Carolina is surrounded by many states, namely Virginia, South Carolina, Georgia, Tennessee, etc. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.
| States | Filing Fee | Annual/Biennial Fee | Sales Tax |
| North Carolina | $125 | $200 | 4.75% |
| Virginia | $104 | $50 | 5.3% |
| South Carolina | $110 | $10 | 6% |
| Georgia | $100 | $25 | 4% |
| Tennessee | $520 | $500 | 7% |
Based on the kind of industry you LLC operated in, your LLC will be liable to some other taxes & duties. For Example, if your LLC is in the sector of import & export, you have to pay the import-export duty.
You should consult with a professional to verify the tax rates or business costs of registering an LLC in North Carolina.
Other Costs
- North Carolina Name Reservation: $10 for online fillings or by mail
- Doing Business As (DBA): $26 for online filling or if filing by mail
- Certified Document Copies: $10 per document.
- Certified of Good Standing: $15
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of North Carolina LLC: $30
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
How Much Does It Cost to Maintain an LLC in North Carolina
To maintain an LLC in North Carolina you will need to pay an annual fee of $200 along with state sales & use tax at 4.75%, state income tax at 5.25% and federal taxes.
One of the primary costs associated with maintaining an LLC in North Carolina is the annual report fee. LLCs are required to file an annual report with the North Carolina Secretary of State’s office each year. This report includes important information about the company, such as its name, address, registered agent, and members or managers. Failing to file the annual report on time can result in penalties and potential dissolution of the LLC.
Another ongoing expense for LLCs in North Carolina is the annual renewal fee. Every year, LLCs must pay a renewal fee to the Secretary of State’s office to keep their company legally recognized in the state. This fee is separate from the annual report fee and is essential for ensuring that the LLC remains in good standing with the state.
In addition to these annual costs, there are other maintenance fees that LLCs may encounter throughout the year. For example, if the LLC decides to change its name or registered agent, there are specific filing fees associated with these changes. Furthermore, if the LLC operates in multiple states or has employees, additional fees may be required to maintain compliance with state and federal laws.
It is important for business owners to carefully budget for these expenses to avoid any surprises or potential legal issues. By setting aside funds for annual fees and other maintenance costs, LLCs can ensure that they remain in good standing and can continue operating without interruption. Failure to meet these financial obligations can lead to fines, penalties, and even the dissolution of the LLC.
Overall, the cost of maintaining an LLC in North Carolina is a necessary investment for business owners looking to protect their personal assets and establish a formal business structure. While the fees may seem daunting, they are essential for ensuring that the LLC remains compliant with state regulations and maintains its status as a separate legal entity. By understanding these costs and planning accordingly, LLC owners can navigate the financial aspects of running their business with confidence.
In Conclusion
The cost of North Carolina is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.