North Carolina Incorporation
North Carolina Incorporation
Form a North Carolina Corporation
Forming a North Carolina corporation is easy with the North Carolina incorporation experts at LawInc.com. Form an North Carolina corporation easily by clicking on “Order Now.” Please feel free to call us, anytime, with any questions. Incorporate in North Carolina today.
Incorporate in North Carolina
Incorporating a North Carolina corporation can be critical to businesses based of North Carolina. At LawInc, we prepare your North Carolina corporation Articles of Incorporation, bylaws, stock certificates, stock ledger and more. We can also obtain your North Carolina corporation Tax ID number and file your North Carolina S corporation election with the IRS.
North Carolina Incorporation Information
The following information will be helpful when deciding to incorporate in North Carolina.
North Carolina Corporation Name
The first step in registering a North Carolina corporation is selecting the business name. North Carolina corporation names:
- Must contain “Corporation”, “Incorporated”, “Company”, “Limited”, “Corp.”, “Inc.”, “Co.” or “Ltd.”.
- Must be distinguishable upon the records of the North Carolina Secretary of State from any other formally organized entity registered with the North Carolina Secretary of State’s office, such as corporations, limited liability companies, limited partnerships, and limited liability partnerships.
- May not contain a word or phrase that indicates or implies the corporation is incorporated for a purpose other than a lawful business purpose or for a purpose stated in its articles of incorporation.
An available North Carolina corporation name may be reserved with the North Carolina Secretary of State for a 120 day period.
LawInc.com permits you to choose up to three names and will conduct a name search for your North Carolina corporation, prior to filing. Create a North Carolina corporation with confidence that your North Carolina corporation name is available.
North Carolina Corporation Formation
North Carolina Filing Procedure: To incorporate in North Carolina, you must file North Carolina Articles of Incorporation with the North Carolina Secretary of State.
North Carolina Corporation Articles of Incorporation: The North Carolina Articles of Incorporation should include:
- Name of the North Carolina corporation.
- Number and class of shares.
- Name and address of North Carolina registered agent.
- Name and address of the incorporator.
North Carolina Filing Fee: The corporation filing fee in North Carolina is $125.
North Carolina Corporation Incorporator: Minimum number of incorporators is one (1) (a natural person over 18 years of age) and there is no requirement that the incorporator be a resident of North Carolina.
North Carolina Corporation Directors: The minimum number of North Carolina directors is one (1).
North Carolina Corporation 1244 Stock: Election to have stock classified as IRC Section 1244 stock allows for a substantially larger application of the deduction from business losses to ordinary income than regular stock. With regular stock, you can only offset $3,000 against ordinary income. With the issuance of Section 1244 Stock, the corporation can claim an ordinary loss deduction of as much $100,000.
North Carolina Registered Agent: When you incorporate in North Carolina, a North Carolina corporation must maintain a registered agent and office to receive service of process in North Carolina. The North Carolina registered agent should be available, at a North Carolina physical address, during normal business hours to accept important legal and tax documents on behalf of the North Carolina corporation. The registered agent can either be (1) an individual with a physical North Carolina address or (2) a corporation authorized to serve as registered agent.
North Carolina Corporation Post-Filing Requirements
North Carolina Corporation Annual Report: North Carolina corporations must file a North Carolina Corporation Annual report which is due by the 15th day of the fourth month after the fiscal year end. Since most corporations have a fiscal year ending December 31, the due date is typically April 15th. The cost to file a North Carolina corporation annual report is $20. To file and pay online, visit http://www.secretary.state.nc.us/corporations/AREntry.aspx.
Corporations file annual reports based on their tax year. The report is due by the 15th day of the fourth month after the fiscal year end. Most corporations have a fiscal year end of December 31st, so the report would be due by April 15th.
North Carolina Corporate Minutes: North Carolina corporations should hold and document annual shareholder and director meetings.
North Carolina Corporation Taxes
North Carolina Corporation Taxes: For information on North Carolina income tax, visit: http://www.dornc.com/business/index.html
North Carolina C Corporation: When incorporating in North Carolina, all North Carolina corporations formed by default are “C” corporations. A North Carolina C corporation is a North Carolina corporation that has not made an election to be an “S” corporation. The term C corporation is specifically used because the entity is taxed under subsection C of the IRS code. North Carolina C corporations are taxed at two levels (“double taxation”). This means that the corporation itself pays its own tax when it makes money (the first tax). The owners or shareholders are then taxed again when they are paid a salary or dividend by the corporation (the second tax). Despite double taxation, North Carolina C corporations offer many planning and benefit opportunities.
North Carolina S Corporation: A North Carolina S corporation is a corporation that has made an election with the IRS to be treated for tax purposes as a “pass-through entity.” This means that corporate profits and losses are passed through to the shareholders (owners) who report them on their own personal tax returns and pay the tax at the individual level. The corporation pays no federal income tax at the corporate level. North Carolina S corporations are not subject to the double taxation C corporations encounter. The State of North Carolina recognizes federal S corporation status.
These are the 3 main advantages of forming a North Carolina S corporation:
- No double taxation: One of the main advantages of North Carolina S corporation status is that it avoids the double taxation that occurs with a regular North Carolina C corporation. In a North Carolina C corporation, the corporation pays income tax on its profits and, if those profits are distributed to shareholders, the shareholders pay income tax on the distribution.
- Loss deductions: The availability of losses. Shareholders of a North Carolina S corporation generally may deduct their share of the corporation’s net operating loss on their individual tax returns in the year the loss occurs. Losses of a North Carolina C corporation, however, may offset only the corporation’s earnings.
- Self-employment tax savings: By electing S corporation status, only the earnings actually paid out to you as salary are subject to payroll taxes; money left in the business is not subject to payroll taxes or self-employment tax. All income passes through, but its tax status depends on whether it is classified as salary or ordinary income.
Federal Tax Identification Number/Employer Identification Number (EIN): The Federal Tax Identification Number, also known as the Employer Identification Number (EIN) is a number that is assigned to a business by the Internal Revenue Service. An EIN is like a Social Security Number for a business. It is a requisite for certain business functions such as opening bank accounts or hiring employees. When incorporating in North Carolina, North Carolina corporations should obtain an EIN.
North Carolina Incorporation Summary
North Carolina Corporation Conclusion: Please contact us 24/7 with any questions regarding forming a North Carolina corporation.