How To Get A Business License In North Carolina In 2023?

You need a business license in North Carolina to operate any business. In the state, business licensing is required if you own a business operating in the state to ensure legal compliance. This is a permit issued by a government office allowing the business to operate in a particular area. You can get this license when you apply with the proper licensing authority or regulatory agency and submit the relevant documents. This article looks at how you can get federal, state, and local licenses and permits for your business in North Carolina. 

How To Get A Business License In North Carolina?

Obtaining professional licenses in North Carolina depends on the county government requirements. If you are running a small business in the state, search for your business license requirements. Every business owner needs to contact the authorities and apply for occupational licenses and permits to conduct business. You can obtain the certificate of registration online or by mail when you register. Once you have your business plan, you can begin the essential steps of starting a business and hiring employees.

Name & Form Your Company

Before obtaining a license, one of the basic steps is to form your company’s entity. You will need to file your business with the Secretary of State. Search and choose a business name depending on the business structure. If you’re a sole proprietor or you operate under a general partnership, you can do business under your legal name. If you are operating as a North Carolina LLC, you need to contact the city or county’s register of deeds site to make sure the chosen name is available.

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Apply For Your North Carolina Business License 

There is no North Carolina general business license for businesses that will ensure compliance with all requirements. However, most companies need an occupational license if they provide goods and services in the state. Some corporations may be subject to several state requirements, while others may not be subject to any. With over 700 industry-specific licenses^[1] in North Carolina, contact the occupational board governing your occupation or industry to determine the state requirements and application process.

You will need the certificate of registration, also known as a “seller’s permit” to open a business in North Carolina and ensure legal compliance. This is the main license needed if you sell tangible personal property retail or provide taxable services like banking. Contact the occupational board if you rent or lease taxable tangible personal property in the state. When applying for your North Carolina state license, they will ask for the name of the business, address, business type, and date of the start of business. Contact the Department of Commerce in the state or search their website for more information.

Determine Which Other Local Licenses May Be Applicable

Apart from the state licenses, you will also need other permits in North Carolina from your local governments to operate a small business in North Carolina. The type of business license required depends on your location and business activity. For example, the city of Charlotte, NC NC, requires all businesses that collect and remit taxes to submit a new business registration form. It also requires some companies to have occupational licenses despite not requiring a general state business license. There are a few privilege licenses, permits, and tax registrations required by North Carolina localities. The local requirements vary by city and county, so you have to contact your local city or search the county clerk’s site for more information on the zoning permits required in North Carolina. The state of North Carolina offers free information and a free service for anyone seeking to start a business. While you don’t need the state-issued licenses, you still need these other licenses to sell your product or service in North Carolina; therefore, contact the relevant authorities.

Apply For Any Additional Statewide License You Need

There are several industry-specific tax requirements in NC. These are state-issued permits and licenses that apply to any company in North Carolina. These requirements apply to those selling or leasing tangible personal properties and those selling taxable services. Every company in the state of North Carolina needs a sales and use tax permit^[2] to operate. Search and sign up for a directory at the business permit office, providing a comprehensive list of permits and licenses needed. You can also contact your state, municipal, or county government offices for information on additional business licenses in North Carolina. The occupational licensing boards’ site also has a directory with relevant details on additional statewide licenses for corporations. They may include information on the business type, address, and filing date.

Apply For Federal Licenses And Tax Treatment

The last step is to apply for federal business licenses if your company conducts activities regulated by the federal government. Contact your occupational board to know which business activities are regulated by federal agencies. These businesses include agriculture, aviation, transportation, mining, nuclear energy, maritime transportation, broadcasting, and commercial fisheries. Look at the US Small Business Administration’s^[3] directory of federal licenses and permits to ensure you have the right licenses. Most small business owners don’t need to obtain a federal license or permit. However, you will need a federal tax ID, also known as EIN, for your business that allows you to hire employees, pay taxes, provide unemployment insurance, and open business bank accounts. You can get the EIN from the IRS for free. 

Types Of Business Licenses In North Carolina

North Carolina is known for its centers of excellence in education and research. When starting a business here, you will find different business licenses, including local, state, and federal licenses. There are plenty of regulatory, state-issued, and occupational licenses^[4] and permits in North Carolina. The occupational licenses allow you to hire employees and operate legally in the state. The local business license is the most common type of license in North Carolina you get from your local government.

Some cities require getting a general business license, while others demand specific licensing such as occupational licenses depending on the industry. For example, you will need to get occupational licenses for alcohol and beverage businesses and an occupational tax certificate to operate them. Other specialty occupational licenses include legal counsel, massage therapy, banking, or plumbing. There are specific licenses for various professionals and special licenses related to sales tax and other taxes. Your business might also be required to obtain an environmental permit, such as from the animal waste disposal or incinerator operation regulated by the North Carolina Department of Environmental Quality.

What You Should Prepare To Get A Business License In North Carolina?

The business license NC requirements depend on your location and business activity. In North Carolina, every city and county has varying licensing requirements. Conduct research in a specific city or county to understand specific licensing requirements. Also, search the county clerk’s office website or contact the physical office to learn about the licensing requirements. Some requirements include business registration with the county clerk and holding the government’s sales use or tax permit.

How Much Does A Business License Cost In North Carolina?

There is no fee for a Certificate of Registration^[5] in North Carolina. However, you will pay a $125 fee to file the Articles of Organization with the North Carolina Secretary of State when you register an LLC. Some municipalities may require a small fee of $15 to $30 for a standard business operating license or special license. Check and confirm with your local area to identify how many licenses you need and the fees required. You may also pay $18 plus $2 for an electronic filing when you register limited liability partnerships or an LLC. In many cities, specialized licenses vary depending on how many licenses you need. Luckily, the Articles of Incorporation do not require the principal office mailing address. The overall cost of obtaining business licenses varies depending on the business location and industry.

Final Thoughts

Before opening a business in North Carolina, one requirement is to get the permits and licenses needed to operate legally within the state. Your business may need a local, state, or federal license depending on the business location, industry, and activity. The most common state requirements for forming a small business in NC include getting the appropriate business licenses or permits to run a business successfully. This article has looked at how you can obtain a license in North Carolina when forming a business. You will need to follow several steps when applying for a license by visiting the Department of Licensing and Regulation. It is suggested that you sign up for their newsletter on the same site to stay up to date with changes.