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How do I form an LLC in North Carolina?

Federal & State Law Editorial TeamLast reviewed: 2026-04-30

North Carolina LLCs are governed by the North Carolina Limited Liability Company Act, N.C. Gen. Stat. Chapter 57D.

1. Filing Fee and Processing Time

  • Articles of Organization (Form L-01): $125 filing fee with the North Carolina Secretary of State.
  • Processing: 3-5 business days online; 7-14 business days by mail. Expedited: $100 for 24-hour; $200 for same-day.

    • 2. Name Reservation

  • Optional. 120-day reservation for $30. Name must include "Limited Liability Company," "LLC," "L.L.C.," "Ltd. Liability Co.," etc. (N.C. Gen. Stat. § 57D-2-01).

    • 3. Registered Agent

  • Required under N.C. Gen. Stat. § 57D-2-40.
  • Must be a North Carolina resident OR a domestic/foreign entity authorized in NC, with a NC street address.

    • 4. Operating Agreement

  • Permitted but not required (N.C. Gen. Stat. § 57D-2-30). Not filed with the state.
  • Strongly recommended. Default rules under Chapter 57D apply otherwise.

    • 5. Annual Report

  • Required. Due April 15 each year (calendar year-end basis).
  • Filing fee: $200 — among the highest annual report fees in the country.
  • Filed online at sosnc.gov.
  • Failure to file timely results in administrative dissolution after 60 days.

    • 6. State Taxes

  • North Carolina has a flat 4.5% individual income tax (2025, declining to 3.99% by 2027) on pass-through LLC income.
  • LLCs taxed as C-corps pay 2.5% NC corporate income tax (the lowest in the U.S.; phasing out by 2030).
  • Franchise tax applies to C-corps (minimum $200) but not to LLCs taxed as partnerships or disregarded entities.
  • Sales and use tax registration with the NC Department of Revenue if selling taxable goods.

    • 7. Federal EIN

  • Required for multi-member LLCs and any LLC with employees.

    • 8. Professional LLCs (PLLCs)

  • Licensed professionals must form a Professional Limited Liability Company (PLLC) under N.C. Gen. Stat. Chapter 57D, Article 10.
  • Requires approval from the relevant licensing board.

    • 9. Local Business Privilege License

  • North Carolina eliminated statewide privilege license tax in 2015. Some cities still impose local privilege/business license taxes.

    • This is legal information, not legal advice.

    When to Talk to a Lawyer
    • You are a licensed professional forming a PLLC requiring board approval
    • You missed annual reports and need to reinstate
    • You are electing C-corp taxation to capture the low NC corporate rate
    Related Statutes & Laws
    • N.C. Gen. Stat. § 57D-2-01
    • N.C. Gen. Stat. § 57D-2-20
    • N.C. Gen. Stat. § 57D-2-30
    • N.C. Gen. Stat. § 57D-2-40
    • N.C. Gen. Stat. § 57D-2-24

    This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.