How to start a business in North Carolina in 14 steps (2025 guide)

Ready to bring your entrepreneurial aspirations to life in the Tar Heel State? Whether you're a native North Carolinian or drawn here by its thriving business climate, launching a company here offers incredible opportunities. From Charlotte's banking hub to the Research Triangle's tech scene to the coastal business communities, entrepreneurs will find a welcoming environment. Let us guide you through everything you need to know about launching a business here, including funding options, business registration, insurance requirements, tax incentives, and more.

Why start a business in North Carolina in 2025?

North Carolina consistently ranks among the top three states for business—CNBC ranked it #1 for two consecutive years. Public schools, community colleges, and universities help produce a ready workforce. North Carolina's flat corporate tax rate of 2.5% is the lowest in the nation—and by 2030, the state corporate income tax will be no more. With this business environment and cities such as Charlotte, Raleigh, Asheville, and Wilmington, you may be considering how to start a business in North Carolina. Ready to get started? Our guide will walk you through the steps. 

Here are the topics we’ll cover in this step-by-step guide: 

• 14 Steps to Starting a Business in North Carolina
• Step 1: Decide what type of industry is best for your business
• Step 2: Conduct industry research
• Step 3: Create a business plan
• Step 4: Choosing your business name 
• Step 5: Choose your business entity
• Step 6: Secure funds: North Carolina small business funding, loans, and grants
• Step 7: Choosing your North Carolina business name and North Carolina DBA
• Step 8: Pick a business location in North Carolina 
• Step 9: Find a North Carolina registered agent 
• Step 10: Get a North Carolina EIN, and file your tax and employer identification documents 
• Step 11: Register as a small business in North Carolina 
• Step 12: Secure insurance for your North Carolina small business 
• Step 13: Prepare to pay taxes on your business in North Carolina
• Step 14: Set up your business bank account
• Additional resources to get your business started
• Frequently asked questions 

14 steps to starting a business in North Carolina 

Launching a business is full of opportunities to learn, grow, and make your mark on the world. But, of course, it’s an undertaking that requires planning and preparation. Below, we break down each step to starting a business, from refining your idea to setting up a foundation for growth. With small business resources and insights tailored to North Carolina, you’ll be prepared for success.

Step 1: Decide what type of industry is best for your business 

Your passion and interests likely sparked the idea for your business, but it's also important to consider your experience, education, and any required licenses for your chosen field. 

You’ll also want to align your business idea with North Carolina's industries and economic trends. For example, North Carolina has a thriving technology sector, with a growing hub in the Research Triangle Park region. If you have a software development or IT background, starting a tech-focused business could be a good fit. 

Not sure where to start? Begin by exploring a variety of small business ideas to get some inspiration.

Step 2: Conduct research in your industry

Determine if your desired location can support your business. Visit a local Chamber of Commerce and research your competition. Analyze market trends, conduct a competitive analysis, and establish your unique products and services. Learn about the area’s demographics, including the population’s average age, income, and family size. Know the essential job positions for your business and whether you will be able to fill those roles.

Step 3: Create a business plan

Develop a detailed business plan that covers your company's mission, target market, financial projections, and strategies for success.

A business plan is a formal document that outlines your business goals and how you plan to achieve them, serving as a roadmap for your company's success and helping you secure funding.

A business plan typically contains the following sections:

• Executive summary: Craft a concise and compelling executive summary that captures the essence of your business plan.
• Company description: Explain your company's history, mission, and goals. Your mission statement should be inspirational and reflect why you are doing what you are doing. 
• Market research and potential: Assess your target market, identify demographic information, and understand industry trends.
• Competitive analysis: Analyze your competitors and how your business is different.
• Products and services: Describe your offerings and their benefits.
• Marketing and sales: Detail how you will reach and retain customers.
• Business financials: Include financial projections, including income statements and cash flow forecasts.
• Management and leadership: Share an overview of your team's expertise and experience and their roles.
• Funding request: Detail your funding requirements and how you'll use your money.
• Appendix: Include supporting documents, such as financial statements and market research data.

Creating your business plan will help you gain clarity on your business goals, attract potential investors, and set your new venture up for profitability. A free business plan template can help you get started. 

An excellent resource for aspiring business owners is the North Carolina Entrepreneurship Hub, a program that helps develop their raw ideas into a well-developed business plan.

Develop a detailed business plan that covers your company's mission, target market, financial projections, and strategies for success.

A business plan is a formal document that outlines your business goals and how you plan to achieve them, serving as a roadmap for your company's success and helping you secure funding.

A business plan typically contains the following sections:

• Executive summary: Craft a concise and compelling executive summary that captures the essence of your business plan.
• Company description: Explain your company's history, mission, and goals. Your mission statement should be inspirational and reflect why you are doing what you are doing. 
• Market research and potential: Assess your target market, identify demographic information, and understand industry trends.
• Competitive analysis: Analyze your competitors and how your business is different.
• Products and services: Describe your offerings and their benefits.
• Marketing and sales: Detail how you will reach and retain customers.
• Business financials: Include financial projections, including income statements and cash flow forecasts.
• Management and leadership: Share an overview of your team's expertise and experience and their roles.
• Funding request: Detail your funding requirements and how you'll use your money.
• Appendix: Include supporting documents, such as financial statements and market research data.

Creating your business plan will help you gain clarity on your business goals, attract potential investors, and set your new venture up for profitability. A free business plan template can help you get started. 

An excellent resource for aspiring business owners is the North Carolina Entrepreneurship Hub, a program that helps develop their raw ideas into a well-developed business plan.

Step 4: Choose your business entity: Types of business entities in North Carolina

You have numerous options for a North Carolina business entity. How you structure the business affects its formation, ownership, how it and you are taxed, and who bears liability for debts or claims. The most common types of business structures in North Carolina are:

Sole proprietor

As a sole proprietor, you own all the business property, receive all the profits, and assume personal responsibility for the debts. You report income from the enterprise on your individual income tax returns.

Limited liability company (LLC)

The limited liability company structure combines the limited liability in corporations with the tax aspects of a partnership. “Members” own the property and share in the profits of a limited liability company. "Managers" run the business.

Partnerships

A partnership forms when at least two people conduct business to make a profit. Unless the partners agree differently, each shares equally in the profits, losses, and management rights. The government taxes the individual partner's income but not that of the partnership.

In a general partnership, all partners are personally liable for the business's debts. In a limited liability partnership (LLP), the partners remain personally responsible for general obligations but not for another's malpractice. 

Your partnership may also register as a limited partnership (LP). In such an entity, only the general partners have unlimited liability. Limited partners do not have management rights.

Professional entities

North Carolina recognizes "professional corporations" and "professional limited liability companies." They generally share the same characteristics as business corporations and limited liability companies. 

Only licensed professionals may be owners or managers of these professional entities. Lawyers, accountants, engineers, surveyors, doctors, and dentists can form professional corporations and professional limited liability companies in North Carolina.

Business corporations

Business corporations have shareholders who own the property and share in profits. A board of directors oversees the business, sets policy, and selects officers to run the business. As a shareholder, you do not have personal liability for corporate debts.

In a “C” corporation, the corporate profits and dividends are each taxed. To avoid “double taxation” of profits, you may qualify as an “S” corporation through the Internal Revenue Service.

Nonprofit corporation

Nonprofit corporations conduct activities for charitable and other activities not involving the pursuit of profits. These may include religious organizations, homeless shelters, athletic booster clubs, and homeowner's associations.

Step 5: Secure funds: North Carolina small business funding, loans, and grants

Locate money to launch your venture. Costs to start a business in North Carolina will vary depending on the type of business, industry, required permits and licenses, equipment, supplies, and other factors. However, the standard business filing fees are up to $125, depending on the business structure you choose. To determine the remainder of your startup costs, you’ll have to look at your business complexity, needs, and additional fees involved.

Here's an overview of some common funding options for entrepreneurs:

In addition to the above funding options are North Carolina-specific resources such as the following: 

One North Carolina Fund

The One North Carolina Fund (OneNC) offers discretionary cash grants to support competitive job-creation projects. Grants are awarded based on factors like job creation, investment level, project location, economic impact, and the project's importance to the state and region.

Public infrastructure funds

North Carolina offers various resources to help communities invest in utility and transportation infrastructure, enhancing their competitiveness for attracting businesses. Visit the North Carolina Department of Commerce for more information. 

NC.Gov grant listing

This North Carolina government website includes links to dozens of grant programs across NC state government agencies.

Step 6: Choosing your North Carolina business name and North Carolina DBA

Choose a strong business name that reflects your brand and will attract attention and establish your identity. Consider names that most people can say and spell. The Secretary of State's Assumed Business Name Search engine can tell you if another business is already using the name you want.

Reserve your business name

After ensuring your name's availability, file the appropriate formation documents (Articles of Incorporation for corporations or Articles of Organization for LLCs) with the North Carolina Secretary of State. This registration establishes your business entity and confirms the name's compliance with state laws. However, while this secures your right to use the name for your business entity in North Carolina, it doesn't prevent potential trademark challenges from others using similar names. If you choose to, you can reserve a name before filing formation documents if you're not ready to form your business immediately.

Filing an assumed name

You must register an assumed name to conduct business in any name other than the legal name, such as the corporate or individual's name. With an "Assumed Business Name Certificate," you notify the public that you are "Doing Business As" (DBA) the assumed name. File it with the Register of Deeds office in the county where your business has its main office or place of business. Learn more about DBAs and the pros and cons about getting one.

Step 7: Pick a business location in North Carolina

Decide where to establish your business. Will you provide a product beneficial to North Carolina’s growing film and television industry? Does your business support the healthcare sector or tourism? You’ll want to locate your business in close proximity to your target market. Also, consider the area’s transportation systems, zoning and ordinances that may regulate your business, the availability and cost of utilities, and property tax rates. Depending on your type of business, you may also opt to run it from your home, which could keep costs down.

Here are some considerations if you choose to set up shop in one of North Carolina's larger cities.

Raleigh

• In addition to being North Carolina's capital city, Raleigh is situated in the “Triangle area” that includes Durham and Chapel Hill. Within the Triangle, you will find three major universities, several other colleges, and the Research Triangle Park, with numerous technology and research firms.
• The City of Raleigh's “Building Up-Fit Grant” affords eligible businesses reimbursement and assistance to improve underutilized commercial spaces within the city.

Charlotte

• Charlotte ranks as North Carolina's largest city by population.
• Only New York City tops Charlotte in terms of the banking industry.
• Attractions in Charlotte and surrounding areas include the NASCAR Hall of Fame, major professional sports teams, and Lake Norman.

Asheville

• Tourists to this city visit places such as The Biltmore House, Mount Mitchell (the highest peak east of the Mississippi River), and the Blue Ridge Parkway.
• Through “Asheville Angels,” start-up businesses can access a network of approximately 40 investors and professional and other assistance.

Wilmington

• Wilmington, near the state's coast, houses numerous film studios. It’s also home to a diverse range of companies in fintech, distribution, logistics, advanced manufacturing, and aviation. 

Step 8: Find a North Carolina registered agent

You must have a North Carolina registered agent to receive legal notices and documents on behalf of your corporation or registered business. Important deadlines begin when your registered agent accepts these papers, so it's essential to choose one who will promptly notify you. State law also requires the registered agent to maintain a physical office in North Carolina.

If you live in North Carolina, you may serve as your own company's registered agent. To do so, you must have a physical street address in the state and be available during regular business hours to receive documents. 

Step 9: Get a North Carolina EIN and file your tax and employer identification documents

An EIN (Employer Identification Number) is a nine-digit number the IRS uses to identify your business for tax purposes. You'll need one to file payroll taxes and federal tax returns, open a business bank account, and apply for loans. 

Visit the Internal Revenue Service website to apply for an Employer Identification Number.

Step 10: Register as a small business in North Carolina

Register your business through the North Carolina Secretary of State. The forms and costs involved depend on the type of entity you choose. The required forms for each business type can be downloaded directly from the Secretary of State’s website.

Step 11: Register for your business license and permits in North Carolina

Address any permits or licenses you may need to conduct your business. North Carolina issues over 700 regulatory, state-level, and occupational licenses and permits, and your business may also require a separate local license depending on its location and industry. These licenses ensure compliance with industry-specific regulations, safety standards, and consumer protection measures, varying by city and county.

Do you need a business license in North Carolina?

While North Carolina doesn't have a general business license, certain industries and localities may require specific permits or registrations. To determine the exact requirements for your business, contact the EDPNC Small Business Advisors at 1-800-228-8443. They can provide guidance and ensure you're meeting all necessary regulations.

Step 12: Secure insurance for your North Carolina business

Securing the right insurance for your business is a crucial step in protecting your assets, mitigating risks, and ensuring your company's long-term stability and success.

Types of small business insurance in North Carolina

Step 13: Prepare to pay taxes on your business in North Carolina

Understanding your North Carolina and federal tax obligations is vital for maintaining compliance, avoiding penalties, and ensuring the financial health and sustainability of your business.

Corporate income tax rate

North Carolina's corporate income tax rate is 2.5% for 2024, scheduled to decrease to 2.25% in 2025 and gradually phase out to 0% by 2030.

Sales and use tax

Businesses that buy equipment, supplies, and services from North Carolina vendors at retail pay a sales tax as do individual consumers. The use tax applies to retail purchases from sellers outside of North Carolina. This ensures that goods purchased outside of North Carolina are taxed appropriately when used within the state. Certain items may be exempt from these taxes, so businesses should be aware of specific regulations and exemptions that may apply.

Privilege license tax

Effective 2025, most professionals won't have to pay a tax for the privilege of conducting business in North Carolina.

State and local tax

North Carolina counties and municipalities do not have an income tax, but they tax the value of property. Local governments set their property tax rates.

State withholding taxes

Businesses must withhold North Carolina income taxes from employees' wages and salaries.

Federal taxes

In addition to state and local taxes, all businesses must pay applicable federal taxes, including:

• Federal income tax
• Self-employment tax (for sole proprietors and partners)
• Employment taxes (if you have employees), including the Federal Unemployment Tax Act (FUTA tax)
• Excise taxes (for certain industries)

To ensure you understand your federal tax obligations, check out these IRS resources: Publication 334, Tax Guide for Small Business and Publication 583, Taxpayers Starting a Business and Keeping Records

Tax credits and incentives for North Carolina employers

Tax credits and incentives can help reduce your tax liability and free up funds to invest in your business growth and development. Below are some tax credits and incentives that could potentially lessen your tax burden.

• Data Centers Sales and Use Tax Exemptions: North Carolina provides exemptions for Qualifying Data Centers, Eligible Internet Data Centers and Computer Software at Data Centers. Visit the Economic Development Partnership of North Carolina website for details. 
• Historic Preservation Tax Credit: Tax credits are available for the rehabilitation of income-producing historic properties and owner-occupied historic residences.
• Machinery and Equipment, Sales and Use Tax Exemption: North Carolina provides sales and use tax exemptions for certain manufacturing-related purchases. This includes mill machinery, equipment, and energy sources like electricity and natural gas used directly in manufacturing operations. 

There are also federal tax credits available, including:

• Work Opportunities Tax Credit: This federal credit that affords businesses up to $2,400 in credits per employee for hiring veterans, certain recipients of public assistance, and others in specified “target” groups.
• Disability Access Credit: This federal tax credit is based on expenses to allow disabled individuals to access a business. Businesses with no more than 30 employees or income not greater than $1 million can claim it for eligible expenses. The Disability Access Credit can be used for various expenses, including removing barriers, providing interpreters, and modifying equipment for individuals with disabilities.
• Barrier Removal Tax Deduction. Businesses can claim a tax deduction of up to $15,000 per year for expenses related to removing architectural and transportation barriers for people with disabilities and the elderly. This deduction can be used in conjunction with the Disabled Tax Credit, and it's claimed as a separate expense on the business's income tax return.

For a list of other federal tax credits and deductions for businesses, visit the IRS website.

Step 14: Set up your business bank account

Open a business bank account to keep your personal funds separate from your business funds. Keeping your business and personal funds separate simplifies accounting, protects your personal assets, and makes tax preparation much easier. When opening the account:

1. Collect all your business paperwork, including your EIN, business formation documents, registrations, permits, and licenses. 
2. Choose a bank or credit union that offers products and services you need, such as a checking account, loan offerings, merchant services, and high-yield savings accounts. 
3. Establish business credit using a bank credit card for business-related purchases and expenses. 
4. Set up your financial records by selecting the right accounting software for your organization. 
5. Hire a professional accountant well-versed in local tax codes and your industry to help with financial and other bookkeeping services.

Additional resources to get your business started 

There are several state and federal resources that can support your business with guidance, training, potential funding and more. 

State resources

Economic Development Partnership of North Carolina (EDPNC) Small Business Advisors: This free service offers one-on-one phone consultations to help navigate topics like regulatory requirements, licensing, and small business training for those starting a business in North Carolina.

Small Business Center Network (SBCN): Located at each of North Carolina's 58 community colleges, the SBCN provides free seminars, individual counseling, and resources for small business start-ups and entrepreneurs.

North Carolina Secretary of State's Office: This website offers guides on launching a business in North Carolina, including information on business registration, choosing a business structure, and new business checklists.

Small Business & Technology Development Center (SBTDC): As part of the University of North Carolina System, the SBTDC offers resources like business plan guides, funding information, and counseling services to help develop and grow businesses in the state.

Federal resources 

Small Business Administration (SBA): The SBA supports small businesses through various loan programs, including the 7(a) loan, provides resources for government contracting, and offers counseling and training programs to help entrepreneurs start and grow their businesses.

Grants.gov: This centralized platform simplifies the process of searching for and applying for federal grants across various sectors. It also provides grant writing tips and has a Grants Learning Center featuring the basics of grants, eligibility, and more. 

Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR): SBIR and STTR programs provide research and development funding to innovative tech companies. 

SCORE: SCORE is a national nonprofit organization that partners with the U.S. Small Business Administration (SBA) to provide free mentoring and educational resources to entrepreneurs and small business owners. While not a direct federal agency, SCORE is an independent organization with a network of volunteer business mentors across the United States.   

U.S. Department of Agriculture (USDA): The USDA website lists grants, loans, and other programs and resources for farmers and other businesses serving rural America.

Frequently asked questions

How long does it take to start a business in North Carolina?

The North Carolina Secretary of State typically processes filings to start your business in five to seven business days. For an extra $200 fee, you can get same-day processing. The office will examine and process your filings within 24 hours after submission for an extra $100.

What is the best business to start in North Carolina? 

The best business to start in North Carolina depends on the local economy and demand, but thriving industries include technology, life sciences, and financial services. With the state’s strong support for small businesses, service-based ventures like tech consulting, real estate, or home improvement are also great options, especially in growing urban areas like Raleigh and Charlotte.

What are the sales tax registration requirements for businesses in North Carolina?

If your North Carolina business involves leasing or selling goods or providing taxable services, you'll need to register with the North Carolina Department of Revenue and obtain a certificate of registration (also called a seller's permit). This allows you to collect and remit sales taxes to the state.

Disclaimer: 

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