How To | Start your online business: Registration

Information shared is based on personal experience. Helpful links will be provided at the end of all content. Be sure to research out to individuals that work in the field. Contact information can normally be found on your state revenue page.

In the state of North Carolina whether you are operating an online store or physical location, the business must be registered. When registering a business the owner needs to determine whether they will register as a Corporation, Limited Liability Company (LLC), Partnership, or Sole Proprietorship.

Once you’ve created a clear concept of the business and determined what type of ownership your business will hold you can register your business. Going through Zen Business or Legal Zoom for business registration will save you time and give you peace of mind. Both companies offer a registered agent, EIN, and filing documentation. They also give the option to customize the type of service that is needed. Once the initial payment is given the service lasts a year and can be renewed each year. It is still best to keep in touch with the agent to find out what documents they’ve filed - to know where to pick up if needed. Though they handle most of the work there are still a few things they do not handle. They will not file your taxes for you or obtain any permits. In regards to permits, they will tell you what permits you may need to obtain. As you guess there is a fee associated with that service. It would be best to contact someone at the Department of Revenue for a free consultation. They will be able to tell you exactly what is needed to be in good standing with operating your business.

North Carolina offers a site where they give additional resources to find the proper documentation. Depending on the type of business determines the type of permits that will be needed. As an online store, the permits will not be as extensive as having a physical location. As of now to operate an online store a seller’s permit/license, business registration, and EIN are the only necessary items. As discussed in a previous post I have a small business and will be selling apparel and cosmetics. It was believed that a retail and cosmetics license would be needed in order to operate properly. However, after talking to a Department of Revenue agent it became known that those two items are not needed. In fact, once the permit was applied for and obtained business could operate without any issues.

There are only a handful of states that do not enforce sales tax and North Carolina is not one. Regardless, if you are starting your business or have established a presence you will need a seller’s permit. Permits are free and if you are a remote seller you will have more time to obtain a nexus. If you’re starting a business soon as you begin selling you will need a permit. If you are buying items from a wholesaler you may need to obtain a permit before selling. A permit can be applied for online. When filling out the form there are two main things to be conscious of when the business will be operating and projected income for the year. The documents the state sends will also tell you how often you should file. Even if your business does not make any sales you are still required to file taxes. There are agents that will walk you through the process. If you’re worried about a fee being charged for a seller’s permit, it is free.

Helpful Resources:

Zenbusiness.com

Legalzoom.com

nc.gov/services/starting-business-nc

edpnc.com/start-or-grow-a-business/start-a-business/small-business-resources/