Incorporating in North Carolina

Corporate Name Endings

* Must contain words “corporation”, “incorporated”, “company” or “limited” or an abbreviation corp., inc., co., or ltd. May not contain language stating or implying corporation is organized for purposes not permitted by the Act and its articles. Must be distinguishable from name of domestic, foreign, or non-profit corporation, or the reserved or registered name of a limited liability company or partnership.

Articles of Incorporation Requirements

Director Information

  • Minimum Number – One or more.
  • Residence Requirements. – No provision.
  • Age Requirements – None.
  • Directors are not required to be listed in the articles of incorporation.

Officer Information

  • The officers are not required to be listed in the articles of incorporation.

Stock Information

  • No extra filing fees based on number of share or amount of par value.

Yearly Requirements

Annual Statements

  • Domestic corporations and foreign corporations authorized to transact business in North Carolina must file an annual report with the Secretary of State within 60 days following the last day of the month in which the corporation was incorporated (or received a certificate of authority). Filing fee, $20.

Income Tax Rate

  • Income Tax Rate – The income tax rate is 6.9% in 2000 of net income allocated and apportioned to North Carolina. Payment must be made by March 15 (15th day of 3d month) to Secretary of Revenue.
  • A franchise tax is also assessed. The rate is $1.50 per $1000 of issued and outstanding capital stock, surplus and undivided profits allocable to North Carolina. Minimum tax, $35.

For more information on taxes, visit www.dor.state.nc.us/dor/

John Gordon admin

 

C-Corporation

  • Shareholders have limited liability protection
  • May be listed and traded as a publiccorporation on the stock market or “over the counter”
  • Has a separate and independent tax status from its owners

S Corporation

  • Profits are not subject to “double taxation”
  • Corporate losses may be “passed through” to share holders
  • Shareholders are afforded the same protection as C Corp.

LLC formation

  • Contains characteristics of both corporation and partnership
  • Shareholders may take advantage of “Pass-Through” taxation
  • Limited liability for share holders

Not for profit corp

  • Eligible for tax-exempt status
  • Limited Liability protection
  • Qualify for public and private gains