How to Get a North Carolina Business License

Here’s what to know about business licenses in North Carolina—and how to get one. 

Do you need a business license in North Carolina?

Your business type and location determine whether you need to acquire local, state, or federal licenses before operating a business in North Carolina.

North Carolina state

There is no single generic business license that is required for North Carolina businesses. Instead, North Carolina has almost 950 state, occupational, and regulatory licenses and permits based on industry and business type.

Regulated industries in North Carolina include (but are not limited to) the following:

• Utilities (electrical, gas, water, sewer)
• Transportation
• Telecommunications
• Health services
• Banking
• Real Estate
• Manufacturing
• Waste management
• Fisheries and wildlife
• Food and beverage

For example, breweries in North Carolina are required to obtain a North Carolina Alcohol Beverage Control Commercial Permit while acupuncturists must apply for a license from the North Carolina Acupuncture Licensing Board (NCALB) in order to do business in the state. 

Local

Local licensing requirements can vary depending on your location and business activities. 

Businesses with a physical location may need an occupancy license, which is issued when the building has passed all inspections and the business is legally allowed to operate in the space. In addition, many industries are regulated at the local level, including those involving food, alcohol, and entertainment.

For instance, Raleigh requires certain businesses that sell food or drinks, allow alcohol consumption, and have live or recorded entertainment after 11 p.m. to obtain a Nightlife Permit in order to operate in the city. 

You can reach out to your county clerk or use a business license lookup service like LegalZoom’s to find out more about how to obtain local licenses or permits. 

Federal

Federal license requirements depend on your industry and business activities. 

For example, you will need to get a federal license if your business engages in any of the following activities:

• Importing or transporting certain agricultural products
• Manufacturing, wholesaling, or importing alcohol or selling alcohol at a retail location
• Operating or maintaining aircraft or transporting people or goods via air
• Manufacturing, selling, or importing firearms, ammunition, or explosives
• Wildlife related activities
• Commercial fishing
• Transporting people or shipping cargo by sea
• Mining or drilling on federal lands
• Producing commercial nuclear energy, operating as a fuel cycle facility, or distributing or disposing of nuclear materials
• Broadcasting information via radio, TV, wire, satellite, or cable

For example, businesses that sell alcohol at retail locations, sell guns, or operate aircraft must obtain a federal license from the relevant licensing agency before engaging in business activities.

How to get a business license in North Carolina in 6 steps

To get a business license in NC, you'll need to follow a few basic steps.

Step 1: Set up and register your business

You’ll need to choose a business structure and name before applying for a business license. The type of business structure you select depends on your unique needs.

Common types of business entities include the following:

• Sole proprietorship
• Limited liability company (LLC)
• Partnership
• Limited partnership (LP)
• Limited liability partnership (LLP)
• Limited liability limited partnership (LLLP)
• Corporation

There is no statewide business name registration for sole proprietorships or general partnerships, although you may wish to file a DBA with the Register of Deed’s Office in the county where your business is located.

All other business types will register with the North Carolina Secretary of State.

Step 2: Get an EIN

The IRS requires certain businesses—including those that will hire employees and those with certain business structures—to have an EIN. You can apply for an EIN for free on the IRS website, or use an online EIN service to handle the application for you.

Step 3. Register for taxes

The next step is registering your business with the North Carolina Department of Revenue (NCDOR).

You can register online for withholding tax, motor vehicle lease and subscription tax, and most sales and use taxes by submitting Form NC-BR, Business Registration Application for Income Tax Withholding, Sales and Use Tax, and Other Taxes and Service Charge via NCDOR’s online business registration portal. 

If you need to register other tax types, you will need a paper registration application. 

The information you will need to register depends on your business type and can include the following:

• Your Social Security number or employer identification number (EIN)
• Business name, address, and phone number
• Your email address
• Partner or responsible person information 
• Withholding tax, sales and use tax, or other tax and service charge information

Step 4: Apply for a state business license

First, you’ll need to determine which state licenses you’ll need, if any. The North Carolina Department of Commerce maintains the searchable North Carolina Business and Occupational License Database (NCBOLD). You can browse through the list of various business and occupational licenses or type in a license name or keyword to search the database. You can access license application information by clicking on the business type. 

Certain loan and finance companies (including pawnbrokers and check cashers) may also need to apply for a privilege license. You can apply for a privilege license by filling out and mailing Form B-202A Application for State Privilege License along with applicable taxes and fees to the North Carolina Department of Revenue (NCDOR). 

Step 5: Apply for any local permits

Local permit requirements depend on your location and the nature of your business. If your business operates in more than one location, you may need multiple permits. 

Contact the city hall or county clerk in the location where you operate your business to check if you need a local permit and find out information about applicable fees or specific forms. 

Step 6: Apply for federal licenses

The federal government requires certain types of businesses to obtain a federal license.

Here are the relevant federal agencies to contact about licensing if your business is involved in the following industries:

• Agriculture: U.S. Department of Agriculture (USDA)
• Alcoholic beverages: TTB
• Aviation: Federal Aviation Administration (FAA)
• Commercial fisheries: National Oceanic and Atmospheric Administration Fisheries Service (NOAA Fisheries)
• Firearms, ammunition, and explosives: Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)
• Fish and wildlife: U.S. Fish and Wildlife Service (FWS)
• Maritime transportation: Federal Maritime Commission (FMC)
• Mining and drilling: Bureau of Safety and Environmental Enforcement (BSEE)
• Nuclear energy: U.S. Nuclear Regulatory Commission (NRC)
• Radio and television broadcasting: Federal Communications Commission (FCC)

After getting your North Carolina business license

Once you have a North Carolina business license, you’ll need to make sure it stays valid by updating your license to reflect major changes, meeting annual renewal deadlines, and taking steps to comply with local requirements.

Keep your license up to date

Let your local licensing authority know if you make any changes to your business structure, name, location, or activities.

Comply with local regulations

Some cities or counties may require you to take additional steps to keep your business in good standing, such as complying with zoning requirements, building codes, parking guidelines, and restrictions on noise levels.

For instance, Greensboro, North Carolina requires food trucks to operate during specified hours, fulfill location requirements, maintain an insurance policy, and obtain health, business, and mobile food vendor permits in order to do business in the city. 

Comply with annual renewal requirements

Many business licenses need to be renewed annually. If you don’t renew your business license when it’s due, you run the risk of losing your license—and your ability to do business.

Getting a NC business license the easy way

Keeping up with local, federal, and North Carolina licenses and permits can be stressful and time-consuming, but it doesn’t have to be. 

With LegalZoom’s business license report and management service, you can feel confident that your business has what it needs to ensure compliance with local, state, and federal requirements. Just fill out some information about your business and we will provide a customized report listing all required licenses and permits. We’ll also provide easy instructions for accessing required license and permit applications, notifications about any changes to licensing requirements, a calendar of renewal deadlines, and reminders about upcoming action items.

FAQs

What should I do before getting a business license?

Before getting a business license, small business owners should select a business structure and decide on a business name. The right business structure for you depends on whether you want liability protection, intend to have partners, or want to issue stock, among other factors.

Once you’ve chosen your business structure, you should conduct a North Carolina business name search to make sure no other businesses are operating under your desired name. Finally, you’ll need to formally establish a business with the NC Secretary of State (if required by your business structure) and register for taxes with NCDOR. 

How much is a business license in North Carolina?

The cost of a North Carolina business license varies depending on the license type. 

For instance, a Charlotte street vendor permit has a non-refundable application fee of $35 plus an annual fee of $175, while a North Carolina privilege license for a check-cashing business costs $250 per year. 

The cost of licensing requirements should be factored into the operational budget for your business. You can potentially lose your business license or permit or have your business shut down if you don’t obtain and renew required licenses and permits.

How long does it take to get a business license in North Carolina?

This can depend on a variety of factors, including how long it takes your business to meet additional requirements such as getting inspections or insurance, how long the individual issuing agency’s process takes, and whether you apply online or submit a paper application.