Working with North Carolina state and local tax resources can help you obtain the information you need for your business. State and local taxes for small business owners can be complex or simple, depending on the size and structure of the company. By working with North Carolina state tax resources, you can find the details you need to meet your business tax obligations.

There is a range of major tax issues that business in North Carolina should address. Specific North Carolina state and local taxes will vary based on the type of business. To get the most out of working with North Carolina state and local tax resources, you should:

1. Learn about local North Carolina tax for businesses.

2. Read more about North Carolina state tax credits for companies.

3. Consult with North Carolina state and local tax accountants.

Action Steps
The best contacts and resources to help you get it done

Research online North Carolina state and local tax resources

Some of the primary North Carolina state and local taxes that business owners will need to properly manage include sales and use tax, withholding taxes, unemployment insurance tax, franchise and income tax, county property taxes, privilege license tax and federal taxes. For example, every North Carolina business owner is required to obtain a Certificate of Registration. Once a business owner has registered as a business, he/she will receive information from the Department of Revenue on sales and use tax reporting requirements.

I recommend: Visit the North Carolina Chamber of Commerce to read about North Carolina state and local taxes. Check out the North Carolina Department of Revenue to obtain information about North Carolina state and local taxes.

Rely on North Carolina local tax resources for tax credit information

In addition to tax liabilities, many business owners could qualify for various North Carolina tax credits. For example, a North Carolina business may qualify for tax credits by investing in renewable energy property, by developing low-income housing, by constructing renewable energy facilities or donating cash or property for improvement projects sponsored by development zone agencies.

I recommend: Read more about North Carolina business tax credits by visiting the North Carolina Department of the Secretary of State. You may also learn more about business tax credits available in North Carolina by visiting NC State University.

Get professional advice on North Carolina state and local taxes

While you can find a wealth of North Carolina state and local tax information online, you still may not fully understand the applicable business tax laws and guidelines. A certified professional accountant can help you gain a better understanding of the tax laws and your tax obligations as a business owner.

I recommend: You may consider contacting Carolina Accounting & Tax Service for more North Carolina state tax information. You may also check out Small Business Accounting NC for North Carolina state tax services.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  There is a wide range of state-specific details on North Carolina state and local taxes with which businesses owners should be familiar. For example, North Carolina employers are required to provide unemployment benefits and pay unemployment tax for their employees if the company has one or more employees for 20 weeks or more in a calendar year or if it pays $1,500 in wages during one calendar year.

At tax time and during the year your business needs to stay informed. Tax laws change and rates vary. Fortunately, online you’ll find both North Carolina local tax resources and state tax information.

Whether you need to download a form or find specific tax rates applicable to North Carolina state and local taxes, you’re only a click away. The tax law remains complicated through variations in taxes at the county and city level, compounded by special taxes according to goods sold, but the Department of Revenue (DOR) makes the task easier online. When looking for information consider the following:

1. A business sales/use tax ID for North Carolina state taxes.

2. Get the right North Carolina tax forms.

3. Choose your particular needs from North Carolina state and local tax resources.

4. E-File your taxes for most situations.

5. Resolve tax disputes.

Action Steps
The best contacts and resources to help you get it done

Obtain a sales/use ID to file your North Carolina state taxes

Everyone with a business that sells tangible personal property at retail, rents or leases property, operates a laundry, hotel, motel or similar business needs a certificate of registration and a sales/use tax ID. Merchants file sales/use tax showing gross sales, receipts and purchases among other items.

I recommend: Click on “Form NC-BR Business Registration” to register your Certificate of Registration at the DOR.

Apply correct North Carolina state and local tax rates

Local rates vary. The DOR provides North Carolina local tax resources for public transportation, food rates as found in Section 19 and various other business transactions. Specific North Carolina state taxes apply to liquor sales, manufacturing certain machinery, vehicle lease and several other categories.

I recommend: For an overview of North Carolina state and local taxes click Sales and Use Tax. Choose specific tax info from the North Carolina state tax resources at the Sales/Use Tax Division. To stay updated sign up for the Department of Revenue Tax Updates Email List at E-Alerts.

Get a North Carolina state and local tax resource by tax type

Select a category from a list that includes corporate income tax, partnerships, sales and use tax. After you select, choose the information applicable to your business.

I recommend: See Tax Type under tax information provided by the DOR.

Complete North Carolina state and local tax forms

Download the forms you need from the list of North Carolina state tax resources.

I recommend: Click on the desired form for your business under Tax Forms and Instructions.

Use electronic services to pay North Carolina state and local taxes

To file online you need a sales account ID number, FID, federal employer ID number or Social Security number, address, phone number, email address and credit/debit card or bank account information. A convenience fee, based on $100 dollar increments applies when paying with credit/debit card. All data secured by SSL and 128-bit encryption with available service 24/7.

I recommend: Click on the form that you need to electronically file under Businesses at the Department of Revenue Electronic Services.

Resolve North Carolina state tax disputes

The DOR routinely examines tax returns and sometimes asks for clarification on items. This process occurs either through the mail or personal interviews. Your rights include scheduling time and place for meeting with an auditor and providing representation with an attorney or accountant.

I recommend: Find how to request a review, file a hearing and who to contact for taxpayer assistance at the Department of Revenue’s North Carolina Taxpayers’ Bill of Rights page.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If you have questions about electronic funds transfer or other electronic services contact the E-Services Help Desk. In Raleigh phone (919)733-1674 or toll free at 1-(877)308-9103, Option 1. Phone the Help Desk during office hours, 8 to 5 pm weekdays.

For the small business owner within North Carolina, it is imperative that they have an understanding of North Carolina state and local taxes. You want to be on top of the tax code so that you have a knowledge of the tax credits you might qualify for as well as the taxes and surcharges your business will have to pay the state, county or town where your business is located.

Locating basic information about North Carolina state and local taxes is fairly easy are there are numerous quality resources on the Internet. Just be sure to check back often, or have your account keep you informed of the latest changes, as the tax codes are always changing. Think of your exploration as North Carolina state and local tax resources for beginners.

1. Find government or association websites as a basis for North Carolina state and local tax resources.

2. Locate North Carolina local tax resources by visiting county office websites or offices.

3. Find seminars which provide North Carolina state tax resources for small business owners.

Action Steps
The best contacts and resources to help you get it done

Locate North Carolina state and local tax resources by finding government and association websites

The state of North Carolina offers several websites that give a comprehensive explanation of the tax code, tax forms and tax requirements for small and large businesses alike. Take the time to browse these resources for a cursory understanding of how these tax laws might apply to your business.

I recommend: Visit the website for the North Carolina Tax Collectors' Association. Their organization of tax revenue directors collects the revenue for the state. Take a moment to familiarize yourself with the tax collector in the area your business is located. Read up on the Electronic Services which are offered by the state of North Carolina Department of Revenue. You can gain a base knowledge of the state tax codes, e-file and even find out when to expect your return.

Go to websites or offices of local North Carolina tax resources

Many counties within the state of North Carolina now have an online presence. On these various websites, one can learn the various taxes which are associated with owning a business and commercial property within the county. These taxes are assessed above both federal and state taxes.

I recommend: Visit the website for Wake County for information on local taxes specific to businesses and individuals in that county. You can also check out the website for Onslow County for similar North Carolina tax information.

Locate seminars which cover North Carolina state taxes

There are many small business associations and tax professionals alike which hold seminars on the basics of state and local taxes within the state of North Carolina as well as strategic tax planning. Attending these events is a great way to get a base of knowledge on the general tax code within the state and how it might apply to your business. Some of these association events will have a fee associated with attending. Just keep your receipt because after all it is tax deductible.

I recommend: Visit the website for the North Carolina Society of Tax Professionals. They host seminars and events which specialize in planning for federal, state and local taxes that affect small businesses. The North Carolina Small Business Center Network also holds such strategic tax planning events.

Learning more about North Carolina state and local tax resources key terms can help you identify tax obligations for your business. The amount and the type of state and local taxes you’ll owe in North Carolina depend on the structure and size of your company.

In addition to tax liabilities, businesses in North Carolina may qualify for tax credits. Tax credits are a credit on certain North Carolina tax liabilities. Familiarize yourself with state and local tax resources key terms to gain a better understanding of how to best manage your tax liabilities.

Action Steps
The best contacts and resources to help you get it done

Sales and use tax

Sales and use tax are the standard taxes associated with the purchase and sale of taxable tangible property in North Carolina. Every business owner conducting transactions in North Carolina is required to register with the state and collect and submit the required tax due.

I recommend: Find out more about North Carolina sales and use tax by visiting the North Carolina Department of Revenue.

Privilege license tax

Privilege license tax is a tax paid annually in North Carolina by certain companies. This tax is a tax that gives companies the privilege of doing business in North Carolina and is applied before actual business activities start.

I recommend: Read more about privilege license tax at the North Carolina Department of Commerce.

Unemployment insurance tax

Unemployment insurance tax is a tax paid by employers and used to contribute to the state's unemployment benefits. Unemployment insurance coverage is a requirement for all North Carolina businesses that pay $1,500 in salary per year or employ one or more employees for 20 or more weeks per year.

I recommend: Read more about unemployment insurance tax by visiting the Employment Security Commission.

Franchise tax

All companies doing business in North Carolina are required to pay a franchise tax for the privilege of conducting business activity in the state. Franchise tax is applied to all business income in North Carolina.

I recommend: Find out more about the state’s franchise tax at Toolkit Media Group.

Renewable energy tax credits

Business participating in renewable energy activities may qualify for tax credits in the state of North Carolina. The state, under certain guidelines and restrictions, offers businesses a credit of 35 percent to cover the cost of eligible renewable energy items purchased, built or leased and placed in service by a taxpayer.

I recommend: Visit the North Carolina State University to find out more about the state’s renewable energy tax credits.

North Carolina Qualified Business Tax Credit Program

The North Carolina Qualified Business Tax Credit Program is managed by the Securities Division of the Department of the Secretary of State. To qualify, businesses must be registered with the state as a qualified business venture, qualified grantee business or a qualified licensee business. Business must also meet certain other criteria and participate in specific types of business activities as defined by the state.

I recommend: Read more about the Qualified Business Tax Credit Program at the North Carolina Secretary of State.