North Carolina is one of the places in the United States full of opportunities for Latino entrepreneurs. Registering your company is the first step to formalize your business and take advantage of the legal and fiscal benefits that the also known as “The Old North State” offers.
In this article, we explain Step by step how you can register your company in North Carolina , with information specific to the Latino community. If you are new to the process, are looking for ways to simplify the process, or need to reach out to the local community for help, read on!
1. Decide the type of business
The first step is to define what type of structure your company will have. The most common types in North Carolina are:
- Sole Proprietorship or Sole Proprietorship
- Partnership
- Limited liability company (LLC)
- Corporation or Joint Stock Company
- Limited Companies (LP)
- Limited Liability Partnerships and Limited Liability Companies (LLLP)
- Non-profit organization (501 c3)
Each structure has different tax and legal implications. If you have doubts about which one to choose, it is advisable to speak with a specialist. For Latino entrepreneurs in North Carolina, organizations such as the Hispanic Economic Development Corporation y prosper They offer seminars and free advice in Spanishl about which is the best option for your business.
2. Choose a name for your company
Before you register your business, you should make sure that the name you choose is available in North Carolina. You can do this by checking the North Carolina business name database. North Carolina Secretary of State If the name is already taken, you will need to find a different one.
If your business name will be different from the legal entity, you will need to register a tradename under the program Doing Business As (DBA) .
ideas: Make sure your business name is easy to remember, and if possible, has a unique twist to attract your target audience. Below you can hear the story of a Latin entrepreneur who managed to give his business an original and creative name.
3. Register your company
To register your business as an LLC or corporation, you must file articles of incorporation and other applicable documents with the North Carolina Secretary of State . You can do this online through their official website. The registration fees for two of the most common company structures are as follows:
- $125 for an LLC
- $120 dollars for a corporation
Processing times may vary, but generally it takes between 1-2 weeks to receive confirmation of registration. Please note that for register an LLC In North Carolina, you are required to appoint a registered agent, who will be the person authorized to receive and process company documentation. For example, to receive tax notices and other government communications. The requirement is that the agent must be a resident of North Carolina. This can be you or there are companies that provide this service.
4. Get your Employer Identification Number (EIN)
El EIN (Employer Identification Number) is a unique number that you need in order to hire employees, open a business bank account for your company once you have created it, and file taxes. You can obtain this number for free at the website of the IRS (Internal Revenue Service).
For Latino entrepreneurs who do not have a Social Security Number (SSN), the ITIN (Personal Taxpayer Identification Number) it can be used instead of the SSN to obtain the EIN.
In North Carolina there are options for Help getting an ITIN number, seeking help can be a good idea to avoid difficulties and not having to part with your original documents.
5. Local licenses and permits
Depending on the type of business you decide to open, you may need to obtain additional licenses and permits. Each city or county may have specific requirements. For example, if you sell products, you will need a sales license .
Recommendation: Visit the page of North Carolina Department of Revenue for more information on licenses and permits based on your business type.
Latino Businesses in North Carolina
Here's an inspiring story from Luis, a Latino entrepreneur who registered and opened his business called "Tequio" in North Carolina, navigated the pandemic, had to close it, and reinvented himself. Listen to his story.
6. Register your business for state taxes
If your business will be selling products, you will need to register for the sales and use tax You can do it through the website of the North Carolina Department of Revenue (NCDOR).
In case you hire employees, you will also have to register your company for the wage tax and the unemployment insurance . Taxes for employees must be withheld from their wages and remitted to the appropriate authorities.
7. Open a business bank account
It is important to separate your personal finances from your business finances. Opening a business bank account will help you keep your finances organized and will give you a professional image when interacting with your future clients and suppliers. Additionally, some banking institutions offer Specific services for Latin entrepreneurs , such as financial advice or commission-free accounts.
If you are a Latino immigrant and want to open a business in North Carolina, make sure you have the following documents:
- Identity Documentation: A valid passport, state ID or a ITIN if you do not have a Social Security number.
- Work permit or legal residence (if applicable for some subsequent licenses) : For example, if you open a company for the real estate business, you need your SS number to obtain your professional license.
- Proof of North Carolina residency: You can use a utility bill or rental agreement to prove that you reside in the state.
Additional Resources in North Carolina
There are several local organizations such as prosper , Hispanic Economic Development Corporation , Latin American Chamber of Commerce and Carolina Small Business Development Fund that offer advice, scholarships and other resources for Latino entrepreneurs.
The Hispanic Center has a Economic Development Program community focused Hispanic and LatinaThey offer small business membership, financial workshops, tax assistance, a tool bank, and more. It is an excellent option to start the path to registering your business. In addition, it is a good way to overcome language barriers and learn about financing opportunities, business development, and networking.
PODCAST
After the storm
A year ago, Hurricane Helene struck western North Carolina. The Latino community responded with something stronger than the storm: solidarity.
🎧 In this episode, learn how Latino organizations transformed crisis into resilience.
▶️Press play to listen!
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The good thing is that you can bring all the documents (they don't ask for extra things) and the registration is relatively fast.