Every retail or wholesale merchant in the business of selling, renting or leasing taxable tangible personal property in North Carolina is required to obtain a Certificate of Registration, unless specifically exempt by statute. Also, some service-oriented businesses, such as dry cleaning, hotels or similar businesses in the state must obtain a Certificate of Registration.  Once registered, you will receive information from the Department of Revenue on sales and use tax reporting and remittance requirements.

For clarification of the sales and use tax law as it applies to your business or to obtain a Certificate of Registration (Application Form NC-BR), contact:

North Carolina Department of Revenue
Sales and Use Tax Division
P.O. Box 25000
Raleigh, NC 27634-0001
Toll-free: (877) 252-3052

Certain taxes must be withheld from employee wages and remitted to the appropriate government agency. These include state and federal income taxes and FICA (Social Security). 

The State of North Carolina requires that every new employer complete and file with the North Carolina Department of Revenue an application for a North Carolina Withholding Identification Number.

To register with the State of North Carolina, you must complete an Application for Withholding Identification Number (Form NC-BR) and submit to:

North Carolina Department of Revenue
Sales and Use Tax Division
P.O. Box 25000
Raleigh, NC 27634-0001
Toll-free: (877) 252-3052

The state privilege license tax is applicable to certain businesses or professions in North Carolina and should be applied for before business commences.  The state privilege license is an annual tax that begins July 1 and ends the following June 30.  If starting business after July 1, the tax is not prorated.

Privilege licenses limit the person, firm or corporation named in the license to conducting the profession or business specified on the license. Merely obtaining a privilege license does not authorize the practice of a profession or business.

The privilege license is not a certification that the holder is qualified to perform a specific business or profession. It is simply a tax for the privilege of doing business in the state. The Business ServiCenter can inform you about any privilege licenses that may apply to your business and can provide you with the proper application for the license.

Download the Privilege License form, B202A

For further information:

North Carolina Department of Revenue
Tax Payer Assistance
P.O. Box 25000
Raleigh, NC 27634-0001
Toll-free: (877) 308-9103

Generally, a sole proprietorship, partnership, corporation, LLC, LP, or LLP is required to provide unemployment insurance coverage for its employees if the business has one or more employees for 20 or more weeks in a calendar year or if it pays $1,500 in wages during a calendar year.

You may also be liable for unemployment insurance tax if you acquire all or part of a business already subject to the Unemployment Insurance Act.  Employer contributions to the Unemployment Insurance Fund are paid to and administered by the North Carolina Employment Security Commission.  To determine the extent of your obligation, contact your local Job Service Center or:

Employment Security Commission
700 Wade Ave.
Raleigh, NC 27605
(919) 733-7156

Every corporation doing business in North Carolina and every inactive corporation chartered or domesticated here must file an annual franchise and income tax return using the name reflected by the corporate charter (if incorporated in this State) or using the name reflected by the certificate of authority (if organized and incorporated under the laws of another state).

A franchise tax is imposed on corporations for the privilege of doing business in this state. This tax is due annually as long as the corporation remains incorporated, domesticated, or continues to do business in North Carolina. Questions concerning franchise and income tax obligations should be directed to:

North Carolina Department of Revenue
Corporate Income and Franchise Tax Division
P.O Box 25000
Raleigh, NC 27634-0001
Toll-free: (877) 252-3052

As a business owner, you are responsible for listing your business personal property with the County Tax Assessor's Office in the county in which your business is located and you must also provide the assessor with information concerning any real property improvements such as the addition of a new structure.

If you have questions regarding whether property should be considered real or personal, or any other questions about listing your property, please contact your County Tax Assessor's Office. Failure to list property within the time allowed by law may result in severe penalties under the provisions of Article 16, Chapter 105 of the North Carolina General Statutes.

In addition to state requirements, the federal government requires that every employer who pays wages to one or more employees file an application for an employer identification number with the Internal Revenue Service.  These numbers may be referred to as a Tax ID Number, Taxpayer ID Number or an EIN number.

To register with the federal government, you should file an Application for Employer Identification Number (Form SS-4) with:

Internal Revenue Service Center
Attn: EIN Operation
Holtsville, NY 11742
Toll-free: (800) 829-4933
Fax: (631) 447-8960

 

The Internal Revenue Service will assemble and forward a tax information kit that fits your particular business situation.  The kit includes forms and publications that apply to federal taxes only.  To obtain this information, contact the IRS at (800) 829-4933 or through their website and request:

• A Small Business Resource Guide CD (Publication 3207) or contact (800) 829-3676
• Tax Guide for Small Business (Publication 334)
• Employer’s Tax Guide (Publication 15)
• Understanding Your EIN (Publication 1635)