Incorporating a business is essential for entrepreneurs looking to establish their venture as a separate legal entity. By filing Articles of Incorporation, business owners in North Carolina can enjoy myriad benefits, such as limited liability, tax advantages, and increased credibility. However, the incorporation process may seem daunting for many, especially those not well-versed in the legal intricacies of their state. This article is a comprehensive guide on how to file North Carolina Articles of Incorporation, taking you through the necessary steps and requirements to establish your corporation successfully.
Whether you are a startup founder or a seasoned business owner, understanding the process of filing Articles of Incorporation in North Carolina, popularly known as The Tar Heel State, is crucial for the seamless formation of your corporation. The following sections will outline the paperwork, fees, and registration procedures specific to North Carolina, along with tips on navigating potential roadblocks and ensuring your application is approved. Let’s dive in and explore the ins and outs of incorporating your business in North Carolina.
What is Articles of Incorporation in North Carolina?
The Articles of Incorporation is a legal document required to file with the state government to legalize the creation of your corporation. In other words, filing these documents with the North Carolina Secretary of State ensures the formation of the corporation in North Carolina officially. The Articles of Incorporation is similar to filing the North Carolina LLC Articles of Organization while filing an LLC in North Carolina.
North Carolina, also known as The Tar Heel State, has some rules when it comes to file the Articles of Incorporation. We shared the step-by-step process here to file the incorporation document with the North Carolina SOS. Checking with the SOS is recommended for more information.
It is always wise to consult a legal professional before you file your company under the North Carolina SOS. FIling process can be easy, but it is sensitive. If you miss anything, it can totally stope the filing process.
– LLCBuddy Editorial Team
How to File North Carolina Articles of Incorporation
You can file the Articles of Incorporation in several ways based on the state you are willing to start your corporation. In North Carolina, you can file it in three methods that are online, by mail and in-person. The details are similar to the details you need when forming an LLC. Here are the details you must submit while filing the documents-
Step 1: Get the Form and Enter the Details
The first step is to get the Articles of Incorporation form from the North Carolina Secretary of State. You will get both offline and online forms on the site, as available. You must pay the $125 for filing online, or by mail. when submitting the form. Following are the details you must add to your incorporation form-
Name of the Entity
The first thing you need to do is submit your company’s name. Make sure to mention the exact name of the company that you decided on. Like the LLC naming guidelines, you must also follow the North Carolina corporation naming requirements too. There are a few points to note when you name your company. They are,
- You cannot have a name used by other companies or businesses.
- You cannot have any name that is misleading or the same as government organizations.
- Banks, Insurance, Insurer, or any such names cannot be used as they reflect the financial organization.
- You must add terms like corporation, limited, company, incorporated, or incorporation. You can also add abbreviations like co., ltd., inc., and corp instead of the above terms.
Address of the Corporation
The next section of the form is to provide your main address. It is necessary to have a physical street address in North Carolina. For those running an online business, you must provide any address in the state (including your home address) where you will receive all the business and legal documents and mail. While sharing your address, make sure not to use abbreviations, such as N.Y. for New York or L.A. for Los Angeles.
North Carolina Registered Agent
The next point is to provide information about the Registered Agent. The North Carolina Registered Agent is an individual or business entity that is responsible for receiving all the legal and official documents on behalf of the company. They must be aged above 18 years and have eligibility to conduct business in the state. The Registered Agent should be legit and experienced because, in case of any lawsuit, you need an expert to handle your issues. In most cases, the Registered Agent’s official address is the company’s official mailing address. If you form an LLC, hiring a registered agent is the most crucial step in the process.
Shares and Stocks
The next important information you must provide is about the stocks and shares. While filing the Articles of Incorporation, you must mention a minimum of one share. In North Carolina, to start a corporation, you need at least One director(s) initially. When filing the incorporation documents, you must provide the share of directors in the corporation. It decides the ownership of the company.
If you amend North Carolina Articles of Incorporation in the future, you will not be able to change the initial directors. You might need an additional form to change the initial directors’ details. You must check with the North Carolina SOS while filing the Articles of Incorporation amendment.
Additional Documents
You might need additional documents to submit along with the incorporation documents. In North Carolina, you can attach a cover letter with the documents as an additional document. if you are willing to start a foreign corporation in North Carolina, then you must add one document along with the Articles of Incorporation. Foreign corporations in North Carolina must submit the North Carolina Certificate of Existence along with the incorporation documents.
Signature
Finally, the signature of the directors and shareholders are required on the form. You can have more than one share and director. All your initial directors must submit their official signature while filing the corporation in North Carolina. Get their signatures to file the Articles of Incorporation.
Step 2: Submit the Articles of Incorporation in North Carolina
Once you are done filling up the form, now it is time for you to submit it. The form can be submitted in three methods that are online, by mail and in-person. Checking with a legal professional or a formation service while filing your corporation is recommended. It is sensitive, and one mistake can stop the entire filing process immediately.
- Online filing: Create a wizard on the SOS site, fill out the online form and submit online. Or download the PDF form, fill it up offline and upload it back to the SOS site.
- Offline filing: Send the form by mail or drop it off in person at The Secretary of State, Business Registration Division, P.O. Box 29622, Raleigh, NC 27626.
Cost of Filing the Articles of Incorporation in North Carolina
The cost of filing the Articles of Incorporation in North Carolina is an important aspect to consider when starting a new business. This one-time fee is necessary for officially registering your corporation with the Secretary of State and can vary depending on the specific requirements and regulations of North Carolina. In some cases, additional fees may be required for expedited processing or other optional services. It is crucial for entrepreneurs to budget for this expense and research the specific costs associated with their North Carolina in order to ensure a smooth and successful incorporation process. To file the Articles of Incorporation in North Carolina, you must pay a filing fee. The filing fee is $125 for filing online, or by mail..
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Why North Carolina Articles of Incorporation is So Important
First and foremost, filing for Articles of Incorporation is essential for the legal recognition of your business entity. By officially incorporating your business, you are creating a separate legal entity that is distinct from its owners. This means that your business can enter into contracts, own assets, and be held liable for its own debts and obligations. Without proper incorporation, your business could be considered a sole proprietorship or partnership, leaving you personally liable for any business debts or legal issues.
Furthermore, filing for Articles of Incorporation affords your business certain legal protections and benefits. One such benefit is limited liability protection, which shields business owners from personal liability for the debts and actions of the corporation. This means that in the event of a lawsuit or bankruptcy, your personal assets are generally protected from being used to satisfy business debts.
Incorporating your business also provides credibility and professionalism in the eyes of potential customers, partners, and investors. By having the official designation of a corporation, your business appears more legitimate and trustworthy, which can help attract more clients and business opportunities. Additionally, many banks and investors require a business to be incorporated before they will consider providing financing or investment, further underscoring the importance of this step.
Another key reason why North Carolina Articles of Incorporation is crucial is that it sets the foundation for future growth and expansion. As a legally recognized entity, your business will have the ability to raise capital through the issuance of stocks and shares. This can help fund future endeavors, acquisitions, or expansions, allowing your business to reach its full potential.
Additionally, being incorporated allows your business to establish perpetual existence. This means that the business will continue to exist even after the original owners or founders have passed away or left the company. This provides stability and continuity for the business, ensuring its long-term sustainability and success.
In conclusion, North Carolina Articles of Incorporation is not just a bureaucratic requirement, but a vital step in the formation and growth of your business. By officially incorporating your business, you are not only protecting yourself and your assets, but also setting the stage for future success and expansion. Don’t overlook the importance of this crucial step in your entrepreneurial journey.
Conclusion
In conclusion, the process of filing North Carolina Articles of Incorporation is a crucial step for businesses looking to establish their presence in the state. This legal document serves as the foundation of the company’s structure and outlines essential information, such as the company’s name, purpose, and management team. To ensure a smooth and successful filing process, it is vital for business owners to familiarize themselves with the State of North Carolina’s requirements, adhere to the applicable laws and regulations, and provide accurate and complete information in the Articles of Incorporation.