FORMING A CORPORATION IN NORTH CAROLINA


Stock Certificate
Forming a Corporation to start or operate a business in North Carolina can be beneficial to the business owners in two important ways:  1) it can help prevent the business owner from paying too much in federal and state income taxes and 2) it can help protect the business owners from incurring Personal Liability for acts carried out by the business.

So what are the main steps in forming a North Carolina Corporation?

  • You must select a Business Name and make sure that name is available for use in North Carolina.
  • You must file proper and complete Articles of Incorporation with the North Carolina Secretary of State.
  • Before filing the Articles of Incorporation, you must determine the number of shares the corporation will be authorized to issue (Issued Shares), the class of shares to be issued, who will serve as the Registered Agent, what will be the Registered Agent Address, and who will serve as the Incorporator.
  • After the Articles of Incorporation have been filed, must must hold an Organizational Meeting.
  • At the Organizational Meeting, you must elect Directors, appoint Officers, adopt a set of Bylaws, adopt a Corporate Seal, and issue Stock Certificates to the business owners (called Shareholders).
  • Before operating the business, you will want to apply for a Federal Identification Number (EIN Number) and State Identification Number for banking and tax purposes.
  • If you qualify and wish to be treated as an S-Corporation for tax purposes, you must complete and file IRS Form 2553.
  • Other Considerations:  Should you file an Assumed Name Certificate?  Do you need a Privilege License to operate your business?  Do the business owners need a Shareholders Agreement?  When should you file your first Annual Report with the North Carolina Secretary of State’s office?  What Corporate Formalities should I follow to keep my corporation valid as a legal entity?

If you are planning to form a North Carolina Corporation, the foregoing topics are just a few that a business owner must successfully navigate through to begin operating a business.  If you need help or advice, call an experienced Business Attorney.  Call Wesley Scott Jones now at 910-256-5800 for a free telephone consultation.

Wesley Jones is a Business Lawyer serving in Wilmington, North Carolina serving all of Southeastern North Carolina including New Hanover County (e.g. Wilmington, Kure Beach, Wrightsville Beach, Carolina Beach and the areas of Ogden, Masonboro, Myrtle Grove, Landfall, and Mayfair), all of Pender County (e.g. Burgaw, Surf City, Hampstead and Topsail Beach) and all of Brunswick County (e.g. Bald Head Island, Bolivia, Calabash, Leland, Shallotte, Southport, Saint James, Ocean Isle, and Oak Island).

The following are just a few of the Business Services that Wesley Scott Jones provides to clients:  Forming new Corporations and Limited Liability Companies, drafting Articles of Incorporation, Articles of Organization, Shareholders Agreements, Organizational Minutes, Operating Agreements, Annual Meeting Minutes, Bylaws, Annual Reports, Assignments, Board of Director’s Meeting Minutes, Business Entity Startup and Formation, Representing clients who are Buying or Selling a Business, Business Dissolution and Liquidation, Contract Review and Drafting (including Non-Compete or Noncompetition Agreements, Confidentiality Agreements, and Nondisclosure Agreements), Due Diligence Research, Leases, Licensing, Non-Profit Corporations, Non-Solicitation Agreements, Professional Malpractice, Promissory Notes, and Regulatory Compliance.

Starting a Business in Wilmington NC

Woman sitting with arms crossed.So, you have developed an innovative business plan, secured financial backing, found the ideal location, thought up a great name, designed a logo, and composed a help wanted ad for your future staff. As any business owner knows, it’s going to take much more to get your operation off the ground. At the law firm of Wesley Scott Jones, we can guide you through the legal processes involved with setting up a business, non-profit, limited liability company, or corporation.

Some of the most important considerations that Wilmington business owners must first decide on are how their operation will be set up in terms type and structure. There are several different strategies and we will be able to guide you to one that is the most advantageous for meeting your business objectives. As an  experienced business attorney, Wes is very familiar with the legal aspects of what it takes for a successful sole proprietorship, partnership, LLC, non-profit, or full corporation. The type of structure you choose is often the key to which type of business entity you should select.

We can also discuss issues such as insurance, operating agreements, shareholder issues, non-compete clauses, and many other details today’s business owners must be aware of. Another aspect to be addressed, is the way a business is registered for tax purposes. We are very familiar with the N.C. state laws and local requirements for business registration and can discuss

The process of establishing a business also involves an operating license. Wes is knowledgeable as to what is necessary in the state of N.C. and in the Greater Wilmington area for the specific licensing regulations, based on the business structure. Since there are definite guidelines that govern how and where various businesses can operate, retaining the counsel of an attorney skilled in these matters is vital for any owner wishing to avoid fines, red tape, or any legal difficulties.

To learn more about topics such as these and many more that you should be aware of as a business owner or operator, please visit the Business Law section on the website of Wesley Scott Jones.

To contact the office of Wesley Scott Jones directly, please call 919-256-5800.

 

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