NC is a good place to establish a small business. The state is popular for its centres of excellence in education and research and promotes entrepreneurial spirit. The Business Link North Carolina is a free service of the Department of commerce, North Carolina and guides new entrepreneurs with all the information needed to set up business. The state also has a small business Ombudsman to guide start-ups through the various commercial and governmental requirements and licensing issues.
The process of setting up business involves a lot of planning and strategizing. It involves preparing business plans, choosing the right name, choosing an organization structure, registering the company and completing other legal formalities like obtaining the NC tax ID and other permits and licenses.
Here is a step by step guide to establish your business in North Carolina
- The first step to establish a business is to prepare the business plan. The business plan should contain the business overview which details information regarding the business goals, opportunities and means to achieve them, details of the management and employees and the experience of the promoter, details about the marketing strategy and financial projections. The business plan is a necessary document to obtain credit from banks and to impress the investors.
- The second step is to determine the organization structure of your business. There are different types of business structures like sole proprietorship, partnership, corporation and Limited Liability Company. Each business structure has its share of pros and cons. The registration process and the taxation requirements are different for different organizations. The application for NC tax ID requires information about the organization structure of the business.
- Once you select the business structure, the next step is to register the business name. The name should be unique and different from the already existing businesses. The EIN application form requires the registered name of the business.
- The next step is to file for the NC tax ID or the EIN number.
- Apply for all the required business licenses and permits depending on the nature of the business and its location.
- Find financing options and open bank accounts for the business.
- Hire competent employees to work for you. Businesses have to get a NC tax ID, register with North Carolina Department of Revenue and North Carolina division of Employment security before they start the hiring process.