Source: http://www.dmlp.org/legal-guide/north-carolina/forming-corporation-north-carolina
Timestamp: 2014-10-31 16:58:32
Document Index: 705800899

Matched Legal Cases: ['§ 55', '§ 55', '§ 55', '§ 55', '§ 55', '§55']

Forming a Corporation in North Carolina | Digital Media Law Project
HomeLegal GuideThreats DatabaseLegal AssistanceResearch & ResponseBlogAbout	Forming a Corporation in North Carolina Here is an outline of the steps you need to follow in order to form a corporation (specifically, a "C corporation") in North Carolina. You should also read the general section on forming a corporation for information that is applicable in any state. Additionally, you should familiarize yourself with the North Carolina Secretary of State's website, which has extremely useful information and resources.
Please see our section on choosing and checking the availability of a name for your small business, as well as our section on the trademark law aspects of choosing a name. North Carolina law requires that a corporation name
contain the word "corporation," "incorporated," "company," or
"limited," or the abbreviation "corp.," "inc.," "co.," or "ltd."
Additionally, your corporation name must be distinguishable from other
names on file with the Secretary of State (limited exceptions apply).
You can search for name availability using the Search for a Corporation by Name page on the Secretary of State's website.
Under North Carolina law, a corporation must have at least one director.
Directors need not be residents of North Carolina or
or bylaws so require.
corporation's board of directors. The initial director or directors of
the corporation may be named in the articles, but this is not required.
The filing fee is $125. The Secretary of State's website provides a fill-in-the-blank form
for articles of incorporation, with instructions. For general
information on corporate articles of incorporation, please see the Articles of Incorporation page.
will function. You are not required to file bylaws with the Secretary
of State, but the corporation must keep a copy at its principal place a
business. For general information on corporate bylaws, please see the Corporate Bylaws page. 5. Hold an organizational meeting. See the general section on forming a corporation for details. You can find the North Carolina statute relating to the organizational meeting at N.C. Gen. Stat. § 55-2-05. 6. Issue stock certificates to the initial owners of the corporation.
See the general section on forming a corporation for details. The North Carolina statutes relating to issuance of stock certificates are located in N.C. Gen. Stat. § 55-6-25 and N.C. Gen. Stat. § 55-6-26.
amount to be received in cash, property, or services) for each share of
See the general forming a corporation for details.
Request an Employer Identification Number (EIN) from the IRS. This can be done via its online application. There is no filing fee. If you have an employee or employees (including
corporate officers), you need to register for NC employment taxes at
any of the taxpayer service centers located throughout the state. The
Department of Revenue has a directory of taxpayer service centers that will guide you to the most convenient location.
If you have three or more or employees (including
corporate officers and shareholders who otherwise work for the
company), you are required to carry workers' compensation insurance.
The North Carolina Industrial Commission administers the program. Its website has a useful FAQ.
North Carolina's current tax rate for corporations is 6.9% of gross income, plus a franchise tax. The minimum franchise tax is $35.
North Carolina corporations must file an Annual Report every
year. You may file online at the Secretary of State’s website using the
Online Annual Report Editor.
The fee is $18 to file online. Alternatively, you may file a paper copy
with the Department of Revenue, along with your tax return. You should
be able to download a paper copy of the report from the Secretary of
State's website, but the link was not working at the time of writing.
The filing fee for paper filing is $25.
North Carolina requires certain documents to be kept at a
described in N.C. Gen. Stat. § 55-16-01 and N.C. Gen. Stat. § 55-16-02. N.C. Gen. Stat. §55-16-20
requires North Carolina corporations to make certain annual financial
statements available to shareholders of the corporation. Additional Steps and Information about Forming an S Corporation
with North Carolina. There is no additional paperwork that must be
filed with North Carolina to obtain "S" status.
North Carolina S corporations must file the S Corporation Tax Return every year with the Department of Revenue. If an S corporation has shareholders who are not residents of North Carolina, the company must submit Form NC-NA
with its first tax return (one form for each non-resident shareholder).
This form must be signed by the shareholder, who agrees to pay North
Carolina income tax on their share of S corporation income.
While S corporations are not subject to corporate income tax
in North Carolina, they are responsible for paying the franchise tax
(see above). The minimum franchise tax is $35.
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