Corporate formation in North Carolina: What you need to know

Corporate formation in North Carolina: What you need to know

On Behalf of | Feb 3, 2022 | Business & Corporate Law |

Are you thinking of setting up a corporation? Then you probably know that it takes a little bit more effort and documentation to finalize, unlike a sole proprietorship. Usually, different states have varying rules or requirements for registering a corporation.

If you are in North Carolina, here is how registering a corporation goes.

  • Settle on a business name and check for its availability
  • Recruit or appoint directors of the company, and the corporation’s registered agent responsible for accepting the corporation’s legal papers
  • File articles of incorporation with the Secretary of State
  • Create the corporation’s bylaws
  • Hold an organizational meeting
  • Issue stock certificates to the initial owners of the company
  • Obtain the required local licenses
  • Take care of the taxation bit, which includes filing for an Employer Identification Number (EIN) from the IRS
  • Open a bank account for your business

Getting everything done right at the initial stage will help you avoid problems in the future, and you need to be careful not to leave anything out

How much will it cost you?

There are various costs involved in setting up a corporation. For example, an application for an EIN is free, while the application to reserve a corporate name goes for $30. Therefore, it is advisable to set aside a sufficient budget if you intend to go all the way.

What else do you need to know?

It is advisable to anticipate everyday challenges, such as finding good employees or even ensuring regulatory compliance, depending on your industry. In addition, keep in mind that brushes with the law, especially on taxation, can affect your business significantly.

When done right, registering a corporation is a pretty seamless process, but be sure to get all the paperwork at all the stages right.