How Much Does an LLC Cost in North Carolina?

Forming a limited liability company allows you to protect your personal assets from liability for your small business’ debts. If you're thinking about starting your own limited liability company (LLC) yourself, the question on your mind might be, how much is an LLC in NC?

How much is the North Carolina LLC formation filing fee?

The fee to file is $125—a one-time filing fee. In addition to offering personal liability protection, a North Carolina LLC sets a tone of professionalism for your venture, lending a sense of legitimacy and credibility. In most cases, the cost of setup is worth the benefits for a business owner, although the financial investment varies depending on the type of business you are opening and how much assistance you want during the formation process.

To form your limited liability company in North Carolina and submit your formal business registration, you must complete and file Articles of Organization with the North Carolina Secretary of State. You can file online via the state business portal, or you can do it in person or by mail. You could also use a guided LLC formation service such as LegalZoom to take care of everything.

Your Articles of Organization include the name of your company, the names and addresses of the members (LLC owners), the company's mailing address, business email, and other information.

If you wish to expedite your filing for a faster processing time, there is an additional $100 filing fee to receive your documents within 24 hours and $200 to receive them on the same day.

How much does it cost to reserve an LLC name in North Carolina?

If you know what you want to call your LLC but need some time to fill out the formation documents, you can reserve a name for 120 days so no one else can form a business using that name. Be aware that under state law, your formal LLC name must include the words "limited liability company," "LLC," "L.L.C.," "Ltd. Liability Co.," "Limited Liability Co.," or "Ltd. Liability Company."

First, search the Secretary of State’s business name database to be sure the name you want to use is available. Even if you don’t get an exact match, you’ll also want to be sure that the name isn’t too similar to other names or the state may not approve your application. The online name search is free to use.

If the business name is available, you can submit an Application to Reserve a Business Entity Name and the desired LLC name is held for 120 days, allowing you time to complete and file all of your formation documents. There is a $30 filing fee to reserve a name.

How much does a registered agent cost in North Carolina?

When you form your North Carolina LLC, you must list a registered agent on your Articles of Organization document. This person or entity must be physically available at a provided address during normal business hours to accept correspondence and legal service of process on behalf of your LLC. It is free to be your own registered agent.

Registered agents must meet the following criteria:

• They are a North Carolina resident
• They have a physical street address (not a P.O. box) in the county where your North Carolina LLC is located
• They are available at the designated address during normal business hours to accept service of legal documents

Note that the registered agent's name and address are public record, so if you want to be your own agent, your information will be available to the public. Because of this, many business owners choose to hire a professional registered agent. The cost varies but expect to pay between $100 and $300 per year.

A registered agent service like LegalZoom collects documents on your company's behalf and forwards them to you so that you don't miss any important notifications.

How much does a North Carolina seller’s permit cost?

A sales tax permit—also sometimes called a seller’s permit—authorizes you to collect sales tax. Any LLC doing business in the state is required to obtain a sales tax permit by filing a Business Registration Application for Income Tax Withholding, Sales and Use Tax, and Other Taxes and Service Charge form with the NC Department of Revenue if it is engaged in any of the following operations:

• Selling personal property, digital property, or service contracts
• Selling services or running a dry cleaner, laundry, or similar company
• Renting or leasing personal property or renting accommodations
• Charging admission fees to entertainment
• Selling items via a marketplace

This application authorizes you to collect state sales tax on behalf of your LLC in North Carolina. There is no fee to file the form, although if you work with an accountant, they may file the form for you as part of their services.

How much do local business licenses cost in North Carolina?

The state does not require a general business license for an LLC in North Carolina, however, there are more than 900 different licenses for specific industries, such as occupational licenses, regulatory licenses, and permits.

Some of these are free (for instance, a license to operate an adult day care facility) and others are inexpensive (such as the $75 fee to apply for a landscaping business license). Others are more costly—for instance, a new dental business license costs $2,000.

Depending on your type of business and the services or products you offer, you might need to pay more to register additional business licenses to cover all your activities.

Individual cities and counties will also have their own business license requirements, so it’s important to check with your city and county development offices to determine what you might need. For example, Raleigh requires a license for outdoor seating costing $357 per year.

How much is the annual LLC fee in North Carolina?

North Carolina LLCs must file an annual report on or before April 15 with the North Carolina Secretary of State. The annual report fee is $200. You must file and pay this every year your business is in existence.

This annual report confirms or updates basic information about your small business, such as the address, registered agent, and names of owners and officials.

How much does business insurance cost in North Carolina?

There is a wide variety of insurance types that your North Carolina LLC might need, including:

• Vehicle
• General liability
• Business interruption
• Fire
• Flood
• Commercial property
• Workers’ compensation (required if you have three or more employees)
• Errors and omissions
• Cyber insurance

The fees could vary from a few hundred dollars to thousands, depending on your type of business and which types of insurance your business needs. If you just need business liability insurance to protect from lawsuits as you conduct business, you could pay as little as $50 a month, depending on the insurance company and your business type.

What is the North Carolina franchise tax?

The NC Department of Revenue charges a franchise tax to businesses operating in the state.

An LLC is considered a pass-through entity for North Carolina LLC taxes purposes, which means that you have a choice to either be taxed as an individual sole proprietorship or as a partnership (depending on how many LLC members there are). Or you can elect to be taxed as a C corporation.

There is no franchise tax for a sole proprietor or general partnership.

A C corporation is charged $1.50 for every $1000 of its North Carolina business income.

Other North Carolina fees and business costs you might encounter

There are a few other fees and other costs you might encounter as you set up your LLC in North Carolina.

Professional costs

If you hire an attorney or accountant or work with an LLC formation company, you will have to pay their fees in addition to North Carolina LLC fees. Some LLC filing companies charge no fees at all for basic services, while others may charge several hundred. 

Employer identification number

You will likely need to apply for an employer identification number (EIN) with the IRS. This allows you to open a bank account and file taxes for your LLC. There is no fee for this and you can file for it and receive it in just minutes online. You may choose to pay for a service or a professional to do so for you.

Certificate of Existence

If you open a bank account, seek funding, or seek out a government contract, you might be required to obtain a Certificate of Existence. This certificate is issued by the Secretary of State and demonstrates that your LLC exists in good standing and is authorized to conduct business in the state. If you order it by phone the price is $10 plus $1 per page. If you order it online, the price is $15 plus $1 per page.

Operating agreement

Every LLC should have an operating agreement, which spells out your internal rules and procedures. You are not required to file this with the state. Some LLC formation services include preparation of an operating agreement in their LLC formation package. You can create this form on your own.

DBA

If you form your LLC in North Carolina and then decide that you want to do business under another name, you will need to file a DBA—also called an assumed business name or fictitious name—with the registrar of deeds in the county where you are doing business. There is a $26 fee to file an assumed business name. You can then do business using the assumed business name without filing a separate LLC. Many business owners choose to do this if they don't want to be subject to some LLC naming requirements, such as using "LLC" in the public business name.

Change fees

Making changes to your LLC can incur additional fees. If you change registered agents, you must file a change form for a $5 fee. If you wish to make changes to your Articles of Organization, you'll have to file an Amendment of Articles of Organization for $50.

Dissolution of your LLC

If for some reason you decide to close your LLC, you must file a form called Articles of Dissolution and pay $30 in filing fees, in addition to winding down all of your business responsibilities.

What is the total cost to start an LLC in North Carolina?

To start your LLC in North Carolina, you must spend at least $125 in state fees to file your Articles of Organization with the state. This is your lowest possible LLC cost.

If you are hiring a registered agent, working with an LLC formation company, buying insurance, paying rent, hiring employees, paying for legal and accounting services, buying or renting a location, buying supplies, etc. you could spend at least a few thousand dollars on startup costs—or even more.

LegalZoom’s North Carolina LLC filing services start at $0 plus the cost of filing fees. Browse at our business formation services and let us take some of the details off of your plate.

FAQs

Does it cost more to register a foreign LLC in North Carolina?

A foreign LLC is a company that has already been formed in another state or country and the foreign entity would like to do business in North Carolina. A Certificate of Authority must be filed with the Secretary of State. The filing fee for the Certificate of Authority is $250 for a foreign LLC, more than the price to register a domestic LLC.

Can you get grants to help cover the cost of starting a business in North Carolina?

The Job Development Investment Grant through the state's Department of Commerce is offered to new and expanding businesses to help with startup and filing costs. There are also many grants offered through non-governmental sources. An internet search can help you locate some resources.

What’s the cheapest way to start an LLC in North Carolina?

The cheapest way to start an LLC business is to do all the paperwork yourself. File your own Articles of Organization and be your own registered agent. This will keep your start up fees to a minimum and you will only pay the required North Carolina state filing fees.