How Much Does an LLC Cost in North Carolina

From the $125 filing fee to a range of other expenses, read on to ensure you're financially prepared before creating an LLC in North Carolina.

Despite common misconceptions, the total cost of forming an LLC in North Carolina goes beyond just the $125 LLC formation filing fee.

Other costs should be considered before starting an LLC in the Tar Heel state. Mandatory expenses include the annual report filing fee and business permits.

Plus, a long list of optional fees could increase your total expenses to more than $3,000. Read this comprehensive checklist of North Carolina LLC fees to prepare a more accurate budget.

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North Carolina Domestic LLC Formation Fee

Cost: $125^[1]

To form a domestic LLC in North Carolina, you must submit the Articles of Organization to the Secretary of State. You'll also pay a $125 filing fee to cover the administrative costs.

The Articles of Organization contain important information for the state to identify your company uniquely. This includes the business name, address, and description. Short descriptions like "coffee shop" and "bed and breakfast" are acceptable.

North Carolina's Secretary of State typically processes the Articles of Organization within 7 days after you file the documents. If you need your LLC formed faster, pay for expedited services.

North Carolina Foreign LLC Formation Fee

Cost: $250

If your LLC is already established in a different state and you want to expand your business to North Carolina, you need to register it as a foreign LLC.

Foreign LLCs in North Carolina must submit a Certificate of Authority to the Secretary of State. It typically takes longer to process a foreign LLC application (and twice the cost) compared to domestic LLC applications. In case you need it done quickly, paying for expedited services is also an option.

North Carolina LLC Annual Report Fee

Cost: $200^[2]

All LLCs in North Carolina must submit an annual report. It updates your LLC's current information, including the business address and registered agent's name. The report also confirms that your business is still active.

Note that for foreign LLCs, you are not only paying this fee in NC. You also have separate reporting and fees to cover in your LLC's home state.

In North Carolina, the LLC annual report is due by April 15 yearly, starting the year after your business is formed.^[2] The annual report can be filed online or by mail. If done online, there's an additional $3 electronic filing fee.

North Carolina LLC Permits and Licenses

Cost: $0 - $500+

North Carolina does not have a general state-level business license. However, your LLC may need to get local business permits. The local business permit fees vary per city and could be renewable yearly.

The number of permits and licenses your LLC needs depends on its business purpose. Some businesses may be regulated simultaneously by various governmental offices.

North Carolina Business Taxes

Cost: 4.5% Individual Income Tax | up to 7.5% Sales Tax

LLCs are treated as pass-through entities for tax purposes. This means profits and losses are passed directly to members and reported on their tax returns.

In North Carolina, your earnings are subject to individual income tax.^[4] Additionally, some municipalities collect local income taxes.

If your LLC in North Carolina sells products, you must collect a 4.75% sales tax. You can register online for a seller's permit. This is free of charge.

Additionally, all counties impose an additional local sales tax, which ranges from 2% to 2.25%. In Durham, Orange, Wake, and Mecklenburg counties, there is an additional 0.5% transit tax in addition to the 2% to 2.25% local sales tax. Hence, the highest sales tax rate you could charge is 7.5%.^[5]

North Carolina LLC Optional Fees

While the North Carolina LLC fees below are optional, you may need to pay for some depending on your business needs. For example, obtaining a Certificate of Existence is often necessary when opening a business bank account.

As you plan your budget for your new North Carolina LLC, remember to account for these potential additional expenses:

North Carolina LLC Expedited Service Fee

Cost: $100 or $200

In North Carolina, most of your LLC documents can be expedited for a fee. This includes the Articles of Organization and the Certificate of Existence. The cost depends on how quickly you need the documents to be processed:^[6]

• $100 - 24 hours
  
• $200 - same day

Forming a North Carolina LLC online takes about 5-7 business days. Mailing your application could take 2-3 weeks. You can pay for expedited service to get your LLC on the same day of your request.

North Carolina LLC Registered Agent Fee

Annual Cost: $0, or $100-$300/yr

In North Carolina, you must have a registered agent to receive business and legal documents for your LLC. This includes government notices, tax forms, and annual reporting forms.

You can technically be your LLC's registered agent—as long as you're at least 18 and have a physical street address in North Carolina. You must also be available to receive documents during business hours.

However, your address will be public record. So many LLCs like to hire a registered agent service to keep their personal details private. These services usually charge $100-$300 per year to be your registered agent.

Alternatively, you can hire a friend or family member as a registered agent. Just note that North Carolina's law requires you to secure the person's consent before appointing them as a registered agent.^[7]

North Carolina LLC Operating Agreement Fee

Cost: $0, or up to $500+

LLCs in North Carolina are not required to have an operating agreement. However, it's recommended because it defines important rules and regulations that all members must follow.

An LLC operating agreement contains the following:

• The roles and responsibilities of each member
  
• How new or departing members will be treated
  
• How business profits and losses will be divided

Ideally, you should already have a signed Operating Agreement before forming an LLC in North Carolina. But if your LLC is already formed, you can always draft it yourself after.

Alternatively, an LLC attorney might charge you a $500 flat fee for a standard operating agreement. If you have more complex details, the cost could be higher.

North Carolina LLC Employer ID Number

Cost: $0, or $50 to $99

Any LLC with more than one member or with employees must have an EIN, regardless of how it's taxed. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax-related purposes.

You can just apply for an EIN for free on the IRS website. But if you'd like an LLC service to process it for you, you can do so for a small fee. Here are some providers that do this and their pricing:

• Northwest Registered Agent: $50
  
• Bizee: $70
  
• ZenBusiness: $99

Single-member LLCs in North Carolina don't require an EIN, but it's almost essential in practice. For instance, you'll need one if you hire employees or want to open a business bank account.

Beneficial Ownership Information Report

One-Time Cost: $0, or up to $149

The Beneficial Ownership Information (BOI) is a one-time report that must be submitted to the Financial Crimes Enforcement Network (FinCEN) within 90 calendar days of your LLC's formation.^[8]

It includes information about the LLC's beneficial owners, including name, birth date, and address.

FinCEN doesn't charge a fee to submit your BOI report. But you can pay an LLC service to process it for you and save yourself the hassle:

• Northwest Registered Agent: $25
  
• LegalZoom: $149
  
• ZenBusiness: $149

You're considered a beneficial owner if you own 25% or more of the ownership interests in your LLC. Or if you exercise substantial control over the LLC.

North Carolina LLC Name Reservation Fee

Cost: $30

There's no additional cost to naming your LLC in North Carolina. It's included when you pay the LLC formation filing fee. However, it could take a while for you to gather all the information needed in the Articles of Organization.

If you're not ready to submit your Articles of Organization, you can reserve your desired business name first. Paying the $30 name reservation fee will prevent others from using that name for 120 days.^[9]

Don't forget to review North Carolina's detailed list of naming regulations to prevent your Articles of Organization from getting rejected.

North Carolina LLC Assumed Name Fee

Cost: $26

An assumed business name allows your LLC to operate under a name different from its official registered name.

For example, if "John Doe Enterprises LLC" wants to do business as "John's Coffee Shop," the latter would be the assumed business name. It's ideal if you want to operate under a business name that is more marketable or doesn't have an "LLC" at the end.

The assumed business name fee is paid to the county register of deeds where your LLC operates. There is a flat $26 fee, no matter which county you register in.^[10]

North Carolina Articles of Correction Fee

Cost: $10

After your North Carolina LLC application is approved, your next focus should be on maintaining its good standing over the long term.

Get a copy of the approved Articles of Organization and review all the details carefully. If there are errors, like a misspelled business name or incorrect address, correct them as soon as possible by filing the Articles of Correction.

North Carolina Articles of Amendment Fee

Cost: $50

Your North Carolina LLC's Articles of Organization contain specific details about your business. Should these details change, you must submit the Articles of Amendment to the Secretary of State.

File the Articles of Amendment if you:

• Add, remove, or change an LLC member or manager.
  
• Update your LLC's business address.
  
• Modify your LLC's stated business activities.

North Carolina Change Registered Agent Fee

Cost: $5

An LLC can change its registered agent's details anytime. If this happens, you must submit a statement of change to the Secretary of State as soon as possible. Changes include the registered agent's name and address.

Don't forget to get a signed registered agent acceptance form from your new agent. Failure to submit a statement of change along with the acceptance form may cause time-sensitive legal documents to be sent to the wrong address.

North Carolina Certified Document Copy Fee

Cost: $10 (online) | $15 + $1 per page (in-person/mail)^[12]

Certified copies of business documents are requested from the Secretary of State. These documents verify that your LLC is legitimate and that its details are accurate.

You might need a certified copy of a business document, like your Articles of Organization, for circumstances like opening a business bank account or expanding your LLC in another state.

North Carolina Certificate of Existence Fee

Cost: $10 (online) | $15 (in-person/mail)^[12]

A Certificate of Existence verifies that your business is legally authorized to conduct business in North Carolina and is in good standing with the state. The certificate is often necessary to:

• Open a bank account.
  
• Conduct business outside of North Carolina.
  
• Qualify for business insurance.
  
• Apply for business loans.

North Carolina Business Website Domain Fee

Annual Fee: $10 to $20

A website domain and social media presence provide dedicated online spaces for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.

Even if you aren't planning to build a business website now, you could still buy the domain name. This will prevent others from using your LLC's name as a web address.

North Carolina Business Insurance Premium

Cost: varies

All LLCs in North Carolina with 3 or more employees are required to get workers' compensation insurance.^[13]The cost of business insurance depends on factors like the number of employees, the risk level of your industry, and your past insurance claims.

You can find a private insurance company that offers workers' compensation coverage. Alternatively, apply for the North Carolina Workers' Compensation Assigned Risk Pool.^[14] It provides coverage to businesses that are considered high-risk or need more history.^[15]

Failure to obtain this insurance can lead to hefty fines, potential lawsuits from injured employees, and even business closure.

Bottom Line

North Carolina's $125 - $250 LLC filing fee is just the beginning of expenses you will face when forming an LLC in the Tar Heel state.

Creating and maintaining an LLC in North Carolina could be up to $3,000 or more. It will increase depending on the additional services, documents, and licenses your LLC needs to operate.

There are more costs to consider as your LLC grows. This includes bookkeeping fees, trademark fees, and paying rent. Make sure to set aside an extra budget for unexpected costs.

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