In North Carolina, having a Personal Taxpayer Identification Number (ITIN) or a Social Security number (SSN) is sufficient to open a business.
However, many people don't know when it's appropriate Register your business, what structure to choose, what documents they need, or what steps they should follow before starting to operate.
“It’s something simple and complex at the same time,” he told Enlace Latino NC Gissela Luna, one of the founders of Golden Services, an office that helps register businesses in Marion and Asheville.
“It might sound like: I go to the state website and the IRS website and get my registration. But it’s a little more complex: the vision, the stage the person is in, the plans they have, and whether or not they will have employees.”
Federal law does not require you to be a U.S. citizen to own a business. And that's not a minor detail: Latino entrepreneurship in the state has grown strongly in recent years.
Between 2017 and 2022, the number of businesses owned by Hispanics grew by almost 65%, according to North Carolina Department of Commerce estimatesAnd in total there are about 80,000 immigrant entrepreneurs in the state, says the Hispanic American Chamber of Commerce.
In that context, understanding when and how to register a company can make the difference between working informally or building a business with greater growth opportunities.
What you should know before registering an LLC business in North Carolina
Before starting the process, Luna recommends that people be clear about what stage their business is at and what their goals are.
“Those are the two important things. One: knowing that the requirements are very accessible: a Social Security number or an ITIN. And the other, knowing what my vision is so I know why I need to register my company or when,” he explained.
According to the expert, the decision depends on factors such as the type of business, whether there will be employees, and how finances will be managed. These decisions are key to determining whether it is necessary to form a company and, if so, what type to choose.
Is there any difference between opening a business as an LLC with an ITIN or with a Social Security number?
The answer is clear. “There is no difference,” Luna said when asked if a person with an ITIN can register a business just like someone with a Social Security number.
The difference lies in the function of each document, not in the possibility of opening a company.
The SSN is issued by the Social Security Administration and can be used for work when the person is authorized to do so.
An ITIN, on the other hand, is a tax identification number issued by the IRS to individuals who do not qualify for a Social Security number (SSN), but it does not necessarily mean they are undocumented. While an ITIN does not authorize employment, it does allow individuals to fulfill tax obligations and own a business in the United States.
Related: How to get a personal or business loan with an ITIN Number in North Carolina
Step-by-step guide on how to open a business with an ITIN or SSN in North Carolina
The process for open a business As an LLC in North Carolina, it's the same regardless of whether you have an ITIN or SSN. What changes is the number you use for each transaction.
Step 1: Choose the type of business
In North Carolina, individual entrepreneurs have two main options:
- The first is the sole proprietor or owner-operator business. (sole proprietorship). It is the simplest structure. It does not require registration with the State and the owner operates under their own name.
Luna explained that a person can start working under their own name without forming a formal business. “For example, if I clean houses, I can say: I am Gisela Luna and I work under the name Gisela Cleaning to clean houses, but I am not yet registered,” she said.
In that case, he added, all business activity remains directly linked to the individual and not to a separate legal entity.
- The second is the Limited Liability Company (LLC). This structure separates the owner's personal assets from the business's debts, offering greater legal protection. It requires formal registration with the state.
Luna pointed out that one of the main reasons for forming a company is precisely to limit personal liability in the event of a lawsuit or claim.
“If you’re cleaning a house and you break something, and the person decides to sue you, they’re going to sue you as a person. Everything under your name will be taken: property, everything you’ve built,” he explained.
“On the other hand, if you have a registered company, that person will file a lawsuit in the name of their company, but they will no longer be able to mix it with their personal assets.”
Step 2: Register the business name
If you decide to form a Limited Liability Company (LLC), you must file the Articles of Organization with the North Carolina Secretary of State. The cost is $125.
Registering an LLC creates a separate legal entity from the individual owner, which can offer additional protection from debts, lawsuits, or other business obligations.
Step 3: Obtain an EIN number
Once you register your business, you need an Employer Identification Number (EIN). The IRS issues this number for free, whether you have a Social Security number (SSN) or an Individual Taxpayer Identification Number (ITIN).
The EIN number identifies the business to the federal tax authorities.
“I call it the company’s social security number,” Luna said. “It’s the number that will identify the company. Contracts, the bank account, and loans are all handled under that number.”
Step 4: Register for state taxes
Depending on the type of business, it may also be necessary to register with the North Carolina Department of Revenue. Luna explained that this step is usually especially important for businesses that will have employees and will need to manage state taxes.
Step 5: Open a business bank account
“One of the most important steps is open a bank account"Because the IRS doesn't like personal and business transactions to be mixed," Luna explained.
Many banks in North Carolina accept an ITIN along with a valid passport and proof of address to open business accounts, although requirements may vary by institution.
Step 6: Think about accounting from the beginning
Luna recommends defining how the business's accounting will be handled from the outset. "It's a mistake people make: not thinking about who will manage their business's accounting," she said. "There are quite a few transactions."
Furthermore, he pointed out that it is not necessary to hire an accountant from day one, but it is important to have some tool or system to keep tax records organized.
Related: Where to get help applying for an ITIN in North Carolina?
Help when starting a business
Opening a business is not just about filling out forms. "They should do their research, get informed. Because, in the end, it's all interconnected: the government, the IRS, taxes, and insurance. It's a bit more complex than it sounds." "He said.
Support organizations for Latino entrepreneurs :
- prosper It offers business training and access to financing in Spanish.
- The Hispanic Economic Development Corporation has workshops and advice for small businesses.
- La Latin American Chamber of Commerce of North Carolina It connects entrepreneurs with resources and business development opportunities.
- El Carolina Small Business Development Fund (Carolina Small Business Development Fund) provides loans and technical assistance.
- El Hispanic Center It offers finance workshops, tax assistance, and advice for new businesses.
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