Filing a North Carolina Corporation
Choosing to register as a North Carolina Corporation could be advantageous for new business owners. A Corporation offers tax benefits to owners. It also grants them instant credibility with customers and clients. However, the process of becoming a Corporation can be complicated. New owners must be diligent with all filings.
Steps When Filing
Choose A Name
The first thing that prospective owners must do is choose a name for their entity. The name they select should be unique to their company. That’s because the state of North Carolina does not allow two Corporations to share the same name. To ensure they don’t select a name that’s already in use, owners should check out the DoMyLLC Name Availability Check Page.
Also, North Carolina requires owners to add an indicator to their name reflective of their corporate structure. In this case, owners will want to add something like, “Incorporated,” “Corporation,” “Limited,” “Company,” or an appropriate abbreviation, such as “Inc.”
Choose An Agent For Service Of Process
After choosing a name for the company, new owners must then select a registered agent. A registered agent is responsible for accepting all legal correspondence on behalf of the company. As you can image, a registered agent is critical for a company’s success. Because that’s the case, many owners elect to hire a professional third-party company, such as DoMyLLC, to serve as their registered agent.
File Articles Of Incorporation & Pay Filing Fees
Once owners have selected a name and registered agent, they can file Articles of Incorporation with the Business Registration Division of the Secretary of State’s office. There is a $125 fee to do so. Owners also have the option of paying an expedite fee, which ranges from $100 to $200. Information that owners will need to provide on these forms includes:
- The name of the company
- The number of shares the Corporation is authorized to issue
- Whether the shares will be one class or divided into classes
- Name of the initial registered agent
- The street address and county of the initial registered office
- Business address of the company, if possible
- Any other provisions the Corporation elects to include
- The purpose for which the company is being formed
- Name and address of each incorporator
- Effective date
- Signature
File Initial Report
The state of North Carolina does not require Initial Report, but they may be necessary were a company to expand across state lines.
Create Corporate Bylaws, Appoint Directors And Hold Meetings
After filing Articles of Incorporation, members can hold the initial corporate meeting. Those who filed Articles of Incorporation are responsible for overseeing the meeting. Incorporators should appoint individuals to the board of directors at this meeting and record this information in the corporate records. Directors will serve on the board until the next annual meeting of the shareholders, where they will be up for re-election.
Once the board is in place, directors can define the roles of officers and elect people to serve in each position. Directors will also need to draft corporate bylaws. Bylaws are a matter of corporate compliance, as the Corporation cannot exist or conduct business until the board of directors has adopted them. Bylaws are a private document that serve as an internal operating manual. However, many banks and insurers require proof of bylaws before working with a Corporation.
Issue Stock
While at the initial corporate meeting, the board of directors should also issue stock. The board is responsible for approving all stock issuance throughout the life cycle of the Corporation. The amount of stock that they can release is defined in the Articles of Incorporation. The board should also maintain a stock ledger to increase transparency and protect the corporate veil.
Obtain Employer Identification Number
The North Carolina Corporation will also want to obtain an Employer Identification Number from the IRS so that they can hire employees, file taxes, and open a business bank account.
File North Carolina Required Annual Reports
Each year, the North Carolina Corporation must file an annual report. It is due on the 15th day of the 4th month following the end of the fiscal year. So, if the fiscal year ends on December 31, the Annual Report is due on April 15. It costs $22.50 to file this form online and $25 to submit it by mail. Learn more at the North Carolina Annual Report page.
Ongoing Maintenance
The Corporation must also file taxes and renew all licenses and permits each year.
How DoMyLLC Can Assist With Streamlining The Process
At DoMyLLC, we offer comprehensive services to help business owners in North Carolina. Our services include:
- Name availability check
- Prepare Articles of Incorporation
- File Articles of Incorporation with the Secretary of North Carolina’s office
- Provide sample bylaws, meeting notices and minutes for meetings
- Dedicated account manager
- Unlimited customer support
Contact us today to learn more about how we can help with your administrative needs.