new ventures business development provides resources for starting and growing businesses
Registering and licensing the business
Regulations concerning new businesses vary by location and business type. The N.C. Department of Commerce Business ServiCenter , 919-715-2864 or toll free 800-228-8443, provides a central information source in securing the necessary licenses, permits, and/or other authorization needed to operate a business in North Carolina. There is no fee for this service.
Not all businesses require the same licenses. The following are the major licenses and registration types.
Business or privilege licenses are issued by the city in which the business operates and can be obtained through the city clerk. This also applies to almost every businesses type. Fees vary for each municipality. The unincorporated areas do not require a privilege license. Most businesses must also register with the North Carolina Department of Revenue. If the business will be a sole proprietorship with no employees, it may not have to be registered with the Department of Revenue; any business with employees, however, is required to register to withhold income tax from employee wages.
A withholding agent must apply for a North Carolina withholding number. If the form of business changes, such as from a partnership to a corporation, a new withholding number must be obtained.
A state retail license must be obtained for any business that will sell a product to the end user. Usually service firms are not required to obtain a retail license unless they also sell products. Businesses with more than one business outlet must obtain a separate retail license for each location.
A state wholesale license must be obtained for any business that will sell a product to be resold to an end user. Usually service firms are not required to obtain a wholesale license unless they also sell products for resale. Businesses with more than one business outlet must obtain a separate wholesale license for each location.
All new employers, regardless of the number of employees, are required to report and pay unemployment insurance for any employees.
A business employing three or more full- or part-time employees is required to register with the N.C. Industrial Commission. Workers' compensation insurance must be carried to provide protection to those injured in on the job accidents. Employers are required to maintain insurance sufficient for the payment of compensation, or they must furnish the Industrial Commission with satisfactory proof of their ability to pay the compensation in the amount and manner due an injured employee.
A certificate of occupancy is issued by both city and county governments and enables them to enforce zoning laws and make sure that the building meets all building codes. Contact the local city or county zoning or planning administrator to determine if a certificate of occupancy is required. Check for sign permit regulations, too.
Acquire a Federal Employer Identification Number (federal tax number). If the business will be a sole proprietorship with no employees, the owner’s Social Security number may be used for this purpose.
Responsibility for the environmental impacts of the business is an important ethical consideration. Environmental ethics and protections are increasingly reinforced with government regulations and penalties, so noncompliance can become a serious issue. Solid waste, hazardous waste, and air quality control are some of the areas with which business owners need to be familiar. To ensure full compliance with OSHA, contact the N.C. Department of Labor, Occupational Safety and Health Division, 4 W. Edenton St., Raleigh, NC, 919-807-2796 or toll free 800-NCLABOR. The mailing address is 1101 Mail Service Center, Raleigh, NC 27699-1101.
Businesses that use a name other than the owner's must register the fictitious name with the county. Certificate of Assumed Name or Partnership should be filed with the county Office of the Register of Deeds. Note that although the filing of a certificate serves public notice of a firm’s assumed name, it does not guarantee a firm’s exclusive use of the name even within the county. You must do your own search of registrations in order to insure exclusive use within the county. Contact the Register of Deeds, 704-283-3843 in Union County and 704-694-3212 in Anson County.
Trademarks and service marks may be registered in a state for a term of ten years. For federal registration of a trademark or to register a patent, contact the U.S. Patent and Trademark Office.
Before starting a home-based business, make sure that the location is permitted for a home business. Some housing associations, lease agreements, or zoning restrictions may prohibit home businesses or have rules about signs, sales, deliveries, or other practices. Depending on the type of business, a home occupation permit, as well as the usual licenses and permits, may be required.
Any business that makes baked goods or processed foods should contact the Food and Drug Protection Division, N.C. Department of Agriculture and Consumer Services, 4000 Reedy Creek Rd., Raleigh, NC 27607-6465, 919-733-6366.
If you are buying an existing business, it is required that, at least 10 days before you pay for or take possession of goods, whichever is first, each creditor must be given notice, either personally delivered or by registered or certified mail (N.C. General Statute 25-6-107, governing contracts of notice). Consult your attorney about this procedure.
In addition to the required licenses, there are a number of optional certifications that can help some businesses. For example, a business can be certified as a small business, minority-owned, woman-owned, or disabled veteran-owned enterprise and may be eligible for certain benefits or incentives.
There may be other licenses required for the business; a lawyer or small business adviser can be instrumental in ensuring that the business is registered with all the proper government agencies. Contact the South Piedmont Community College Small Business Center or another local economic development organization for help with business regulations.
Business ServiCenter
The N.C. Department of Commerce Business ServiCenter makes it easier for businesses to meet the license requirements of the State of North Carolina. There are numerous steps a prospective business owner must take before starting a new business. Identifying all the licenses, permits, regulations, and/or other approvals required for the planned business activity is a crucial step to the success of any business.
The Business ServiCenter is the state's "one-stop portal" to guide you quickly and easily to the appropriate business services, programs and resources, licensing and permitting requirements.
Free Services provided by the Business ServiCenter:
- One-on-one client consultation by telephone offering a centralized information sources for existing businesses and those in start-up phase
- Customization of state license information pertinent to your business concept
- Useful information/forms and links to state agencies and other organizations providing services, resources and programs to NC businesses
- Information and referrals to sources of capital and business loan
Disclaimer
The information presented here is intended as a public service. Although efforts are made to assure that the information is accurate and up-to-date, the user assumes all responsibility for the use of information provided. The sponsors of this website expressly disclaim any liability for the information provided herein.
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