Mid-sized and small businesses form the backbone of North Carolina’s economy. According to the Small Business Administration (SBA), there are 890,398 registered small businesses in the state. Not only does starting a new business have the potential to be lucrative, you can create something that will support your family and your community for many years to come.
If you are considering forming a business, it is important that you take the proper steps to put the company in the best position to grow and thrive. Here, our Raleigh business formation lawyers provide an overview of some of the most important things that you need to know about starting a new company in North Carolina.
Five Steps to Start a Business in North Carolina
- Create a Business Plan
If you are going to put the time and energy into forming a new company in Raleigh, it is worth the effort to write down a comprehensive business plan. Essentially, a business plan will define what you are going to do and, more importantly, how exactly you intend to do it. Great execution is just as important as a great idea. Among other things, a business plan should address objectives, logistics, and operations.
- Select a Legal Entity
A business needs to be the proper legal structure. Different types of legal structures work well for different types of companies. Each business form offers certain advantages and certain drawbacks. An experienced Raleigh, NC business formation attorney can help you determine which entity is best for your specific situation. Legal entities available in North Carolina include:
- Sole proprietorships;
- Limited Liability Partnership;
- Professional Limited Liability Partnerships;
- Professional Limited Liability Company
- Limited Liability Companies (LLCs);
- S-Corporations; and
- Think About the Finances
Most businesses need at least some start-up capital. You should assess your finances and determine how you and your partners will obtain money to get business operations up and running. There are many different ways to obtain financing, including soliciting outside investors, applying for a business loan, and crowdfunding.
- Obtain the Proper Licenses
Before you launch operations, it is crucial that you make sure that your company is in full compliance with all relevant federal, state, and local regulations. Depending on the structure of your business, you should register with your local County Register of Deeds or with the North Carolina Secretary of State. In certain industries, a business may also need to obtain additional licenses.
- Build and Grow the Company
After starting the business, you and your team can focus on building and growing the company. Eventually, you may want to hire additional employees and/or expand to an additional location(s). With the proper structure in business, your North Carolina company will be well-positioned to expand.
Get Help From Our Raleigh Business Law Attorneys
At Howard, Stallings, From, Atkins, Angell & Davis, P.A., our North Carolina business lawyers have extensive experience assisting clients with matters related to entity formation. To set up a strictly confidential business law consultation, please contact our law firm today. With law office locations in Raleigh, New Bern, and Morehead City, we serve communities throughout the region, including in Wake County, Durham County, Craven County, and Carteret County.