How to Start a Business in North Carolina

Starting a business in North Carolina is a rewarding venture, whether you're launching a small service business, an eCommerce shop, or a scalable startup. The state’s business-friendly environment, access to funding, and growing population make it an excellent location to begin your entrepreneurial journey.
In this comprehensive guide, we’ll walk you through every essential step to start a business in North Carolina, including choosing a structure, legal registration, tax ID setup, licenses, and strategic tips to help you succeed.
Whether you’re starting with capital or want to learn how to start a business in NC with no money, this page will provide the foundation—and link you to related guides for deeper insights

Why Start a Business in North Carolina?

North Carolina consistently ranks as one of the best states for business due to:

  • Low corporate tax rates (2.5% flat rate)

  • A growing workforce and strong university pipeline

  • Access to research centers and innovation hubs

  • Affordable cost of living and supportive local communities

  • Incentives for startups and small businesses

Whether you're in Charlotte, Raleigh, Durham, or a rural county, you'll find business networks and opportunities to support your growth.


Step 1: Decide on a Business Idea

Every successful business starts with a solid idea. Choose a business based on:

  • Your skills or passion

  • Market demand or gap

  • Profit potential

  • Competition in your local area or niche

If you're unsure, explore these popular business ideas in North Carolina:

  • Home repair and renovation

  • Landscaping and lawn care

  • Cleaning services

  • Real estate and property management

  • Online retail or consulting

If you're short on capital, check out our guide: How to Start a Business in NC with No Money


Step 2: Choose a Business Structure

Choosing the right legal structure will affect your liability, taxes, and daily operations. Here are the most common types in North Carolina:


Sole Proprietorship

  • Simplest structure

  • No separate legal entity

  • Owner has full liability

Partnership

  • For businesses with 2 or more owners

  • Can be general or limited (LLP)

  • Shared profits, losses, and responsibility

Limited Liability Company (LLC)

  • Popular for small businesses

  • Protects personal assets

  • Flexible tax options (pass-through or corporate)

Corporation (C-Corp or S-Corp)

  • Separate legal entity

  • Good for raising capital or scaling

  • More formalities and compliance

Still unsure which to pick? Learn more in our in-depth resource: Registering a Business in NC


Step 3: Register Your Business

Here’s how to legally register your business in North Carolina:


a) Choose a Business Name

  • Check name availability at NC Secretary of State’s business name search

  • Make sure the domain is also available for your website

b) File with the NC Secretary of State

  • LLCs and Corporations: File Articles of Organization (LLC) or Articles of Incorporation (Corp)

  • Sole proprietorships or general partnerships don’t need to file at the state level but must register with the county if using a trade name (“Doing Business As”/DBA)

c) Register for a DBA (if needed)

  • File an “Assumed Name Certificate” with your local Register of Deeds


Step 4: Apply for Federal and State Tax IDs

You’ll need tax IDs for banking, employees, and taxes.


a) Get a Federal Employer Identification Number (EIN)

  • Apply for free at the IRS website

  • Required for LLCs, Corporations, and Partnerships

b) Get a NC State Tax ID

  • Register through the NC Department of Revenue

  • Required if you will:

  • Collect sales tax

  • Hire employees

  • File excise or franchise taxes


Step 5: Obtain Licenses and Permits

North Carolina does not issue a general business license at the state level, but your business may still require local or industry-specific permits.


Common Licenses Include:

  • Health permits (restaurants, catering)

  • Contractor licenses (construction, plumbing)

  • Sales and use tax permits

  • Professional licenses (real estate, legal, medical)

Use the NC Business & Occupational License Database (NC BOLD) to find what you need:
https://www.nc.gov/services/business-licenses-permits


Step 6: Understand Business Taxes in NC

a) State Business Taxes

  • Corporate tax rate: 2.5% (lowest in the U.S.)

  • Franchise tax for corporations and LLCs (minimum $200 annually)

  • Sales and use tax: 4.75% state base + local rates

b) Local Taxes

  • County or city-level taxes may apply depending on your location

c) Federal Taxes

  • Based on your structure (self-employment tax for sole proprietors, payroll tax for employers, etc.)

It’s recommended to consult a small business accountant to avoid penalties.


Step 7: Set Up Business Banking

Keep your personal and business finances separate.

  • Open a business checking account

  • Get a business credit card to build credit

  • Set up accounting software like QuickBooks or Wave

To open a business account, you’ll usually need:

  • Your EIN

  • Articles of Organization/Incorporation

  • Operating agreement (for LLCs)

  • Valid photo ID


Step 8: Get Business Insurance

Insurance protects your business from lawsuits, accidents, or disasters. Types of coverage to consider:

  • General liability insurance

  • Professional liability (E&O)

  • Workers’ compensation (if you have employees)

  • Commercial auto insurance

  • Property insurance

You can compare providers through the NC Department of Insurance or a local broker.



Step 9: Build Your Business Brand

Now that your business is legally set up, it’s time to go public.


a) Create a Website

  • Secure a custom domain name

  • Use builders like WordPress, Wix, or Shopify

  • Optimize for SEO and mobile

b) Claim Your Google Business Profile

  • Essential for local SEO visibility

  • Add address, phone, hours, and photos

c) Register on Local Directories

  • Yelp, Bing Places, Yellow Pages, and chamber websites

  • This builds trust and local presence

d) Create a Marketing Plan

  • Social media outreach (Facebook, Instagram, LinkedIn)

  • Email campaigns

  • Local partnerships and networking


Step 10: Launch and Grow Your Business

Congratulations—your business is ready to go! Now, focus on sustainable growth.


Smart Startup Tips:

  • Keep overhead low (especially if starting with no money)

  • Use free marketing tools: Canva, Google Workspace, Mailchimp

  • Build customer relationships through email and reviews

  • Track your income and expenses from day one


Resources and Related Guides

Here are additional tools and content we recommend to help you every step of the way:

  • Registering a Business in NC
    Detailed step-by-step instructions and legal tips

  • Starting a Business in NC with No Money
    Zero-budget strategies, free tools, and low-cost business models

  • Selling a Business in North Carolina
    If you're planning an exit or acquisition, learn what brokers do and how to prepare

  • North Carolina Business Registration Portal
    https://www.blnc.gov/
    Your one-stop hub for NC business services


Final Thoughts

Starting a business in North Carolina can be one of the most exciting decisions of your life. By following the right legal steps, choosing the proper structure, and planning your finances and marketing effectively, you’ll give yourself the strongest chance to thrive.

Whether you’re bootstrapping a side hustle or preparing to build an enterprise, remember: every big business started small—and North Carolina is one of the best places to grow.