A North Carolina LLC must comply with state law by ensuring its name contains the words: “Limited Liability Company”, or the abbreviations “L.L.C.” or “LLC”. Names can also include a combination of “ltd. Liability co.”, “limited liability co.,”, or “ltd. liability company”. A name can be reserved for up to 120 days by filin gthe Application to Reserve Business Entity Name with the North Carolina Secretary of State. The application can be found at the North Carolina Secretary of State website (http://www.secretary.state.nc.us/corporations/Forms.aspx?PItemId=5429695).
A registered agent must be appionted and be available on regular business hours to accept legal papers on behalf of the LLC. The registered must have a physical street address in North Carolina. The agent can be an individual residing in the state or a business entity authorized to conduct business in the state.
The Articles of Organization must be filed with the North Carolina Secretary of State and contain the LLC’s name and address, name of the registered agent, dissolution date if any, and the management structure of the LLC.
What is an LLC?
LLC refers to a Limited Liability Company, and it is organized by business owners. They have fewer corporate formalities and can be taxed by the IRS as a sole proprietorship, S corporation, or C corporation.
Each state has different requirements and regulations regarding the formation of an LLC. Business owners should check with state laws when considering forming an LLC.
Owners of LLCs are known as members, they can be individuals, corporations, other LLCs, or foreign entities. There is no limit on the number of members an LLC can have. In most states, “single-member” LLCs are allowed, where there is only one owner involved in managing the LLC.
The IRS will treat the LLC as a corporation, partnership, or included in the LLC owners personal tax return. A domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless they file Form 8832 and elect to be treated as a corporation.
LLCs carry tax advantages over other forms of business such as limited partnerships. The owners of an LLC do not assume personal liability for business debt, and any losses of the LLC can be used as tax deductions against active income.
An LLC can be formed through the state business formation process or consulting with LegalZoom.