Attorneys Helping You Form a Limited Liability Company in Raleigh, NC
An experienced legal team can assist you with creating your next business
A limited liability company (LLC) is a hybrid business entity combining elements of the traditional corporation and the partnership. Like a corporation, an LLC insulates its owners from the debts and liabilities of the business. But similar to a partnership, the LLC does not generate its own taxable income. Instead, all the earnings and losses of the LLC pass through to the owners and are reported on personal income tax returns. The knowledgeable business lawyers at Howard Stallings can advise you on whether an LLC is right for your enterprise. For more than 30 years, we’ve helped entrepreneurs take advantage of the many benefits of LLC formation.
How do you form an LLC in North Carolina?
The general process for forming an LLC in North Carolina is as follows:
Select a name — North Carolina law requires you to select a business name that will not be easily confused with that of another business. You can search business directories to determine if your proposed name is available. The words “limited liability company” or an abbreviation (“LLC,” “L.L.C.,” “Ltd.,” “Liability Co.,” etc.) must be appended to your business name. If the name in which you will operate your business is different from the LLC’s legal name, you must file for a DBA (doing business as) or assumed name. North Carolina business law prohibits the use of certain words unless you are actually approved to engage in the business implied by such words. For example, you cannot use the word “engineering” in the business name unless it is actually a state-approved engineering business.
Draft and file articles of organization — The articles of organization is the founding document that actually forms the LLC. It must include:
- Company name
- Date on which the company will be dissolved (unless perpetual)
- Members of the company (the owners)
- Registered agent (the person to receive official mail and service of process)
- Registered office (the place to forward all official correspondence)
At least one member of the LLC must execute the articles of organization and then file with the North Carolina Secretary of State and pay the requisite fee (currently $125).
Draft an operating agreement — The operating agreement sets forth the rules by which the company operates. This important document establishes, among other things, the rights of the members, ownership percentages and how disputes are resolved.
Once you’ve formed your company, you still need to obtain your business licenses and permits from your local jurisdictions.
Receive trusted guidance from a well-respected business law firm in Raleigh, New Bern and Morehead City
When you choose Howard Stallings to assist you with your business endeavor, you benefit from the knowledge, skill and experience of a highly respected business law firm. We have served North Carolina for more than 30 years. To schedule a consultation, call 919-821-7700 or contact us online.