CobaltProsper

How to start an LLC in North Carolina

By Brent Chudoba, editor Updated

Forming an LLC in North Carolina costs $125 to file the Articles of Organization (Form L-01) with the North Carolina Secretary of State. After that you file an annual report of $200. North Carolina charges no franchise tax on a standard LLC. Registered agent must be an NC resident individual or a business entity authorized to do business in NC, with a physical (non-P.O.-box) street address. Annual report ($200) is due April 15 each year following the year of formation.

How much does it cost to start an LLC in North Carolina?

North Carolina LLC costs (reviewed August 29, 2026)
ItemCost
Filing fee (Articles of Organization (Form L-01))$125
Annual report$200/year
Franchise or business taxNone
Registered agentRequired

Source: North Carolina Secretary of State, fee schedule reviewed August 29, 2026.

What are the steps to form an LLC in North Carolina?

  1. Name your LLC. Pick a name that is available and meets North Carolina naming rules, then check it against the Secretary of State's business database.
  2. Appoint a registered agent. North Carolina requires a registered agent with a physical in-state address to receive legal mail. You can be your own agent, or hire a service.
  3. File the Articles of Organization (Form L-01). Submit it to the North Carolina Secretary of State and pay the $125 fee. This is the step that legally creates the LLC.
  4. Get an EIN from the IRS. It is free and takes minutes. Do not pay a service for it. See how to get an EIN free from the IRS.
  5. Calendar your annual report. North Carolina charges $200 to keep the LLC in good standing. Missing it risks penalties or administrative dissolution.
  6. Open a business bank account. Keep business money separate from personal money so your liability protection holds up.

Does North Carolina have a franchise tax on an LLC?

No. No franchise tax for pass-through LLCs (the default classification). Franchise tax applies only if the LLC elects corporate taxation: taxed as a C corp at $1.50 per $1,000 of the tax base (minimum $200), or as an S corp at $200 flat for the first $1,000,000 of the tax base plus $1.50 per $1,000 above that (minimum $200).

How is an LLC taxed in North Carolina?

By default, an LLC is a pass-through entity: it pays no income tax itself, and the profits flow to the owners' personal returns. North Carolina has a state individual income tax with a top rate of 3.99% (flat brackets), so those profits are taxed on your North Carolina return on top of federal tax. Flat rate for tax years after 2025 is 3.99% (down from 4.25% in 2025), per Session Law 2023-134. NCDOR's own rate-schedule page notes additional rate reductions may apply for tax years beginning with 2027 based on statutory revenue-growth triggers (a further cut toward 3.49% is possible but not guaranteed).

An LLC can also elect to be taxed as an S-corp, which changes how owners pay self-employment tax. See LLC vs S-corp vs sole proprietorship and how self-employment tax works.

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