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Using North Carolina Corporation and Partnership Law

Form a business with NC corporate law

By Emmet McMahan
Making a new corporation is one of the most common reasons for using North Carolina corporation and partnership law. A small business may prefer to file the documentation needed to incorporate a business directly with the state. There are also many companies that provide business formation services for a fee.

The most important factor in performing an NC incorporation is choosing a specific business structure. North Carolina partnership law makes some important distinctions between a corporation and a partnership. A partnership generally does not pay a business tax although the partners are liable for business debts.

Corporate law defines the way in which the following entities interact:

1. Shareholders that collectively own NC corporations. Shareholders may hold special privileges such electing a board of directors, proposing resolutions and sharing in the company’s income.

2. Directors that oversee the company’s activities. The activities of the board of directors are typically determined by the company’s bylaws. The board of directors and the shareholders are typically the same group of people in a small business.

3. Employees that provide expertise and perform labor for the company. Employees are also shareholders in many cases.

 

Select the best structure for your business according to North Carolina corporate law

Your choice of business types can include corporations, full partnerships and limited partnerships. There are many sites that summarize business laws in North Carolina and you may also need an attorney to explain these laws to you.
Try: MAX Filings provides specific information on incorporating in North Carolina and also has links to related resources. Speedy Incorporation and LLC offers incorporation services and also has information on filing business taxes in North Carolina.

Use a company to perform North Carolina corporation registration

There are many online services that can submit the required forms on your behalf in exchange for a fee. However, you will still need to comply with the disclosure, operating and reporting requirements.
Try: easynorthcarolinallc is specifically dedicated to forming companies in North Carolina and also provides print-friendly versions of the forms you will need. North Carolina Corporation Services allows you to form corporations and also displays the specific filing fees for North Carolina.

Create a new business by yourself under North Carolina corporation law

Each state has a department that is responsible for the formation of new businesses. You can complete these forms yourself and submit them directly to the correct government department.
Try: The Secretary of State for North Carolina has the required forms and fee schedules for incorporating yourself in North Carolina. The NC Small Business and Technology Development Center provides assistance for small businesses and has answers to specific questions on starting a business in North Carolina.

 

  • You will need to select a name before you perform a North Carolina LLC registration. Many online services provide a name search function to determine if a particular name has been used before. The required forms will also provide spaces for more than one business name in many cases. This increases the chances that an unused name can be found.

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