Start an S-Corp in North Carolina with Inc Authority

Want a quick, simple, and stress-free way to start an S-Corp in North Carolina? Use Inc Authority’s free business formation services. You just need to pay the state filing fees, no hidden charges or service fees.

Start Your S-Corp Today

 1Y Registered Agent Service Free

Free North Carolina LLC or Corporation formation services that require you to just pay the state filing fees.

One year of trusted North Carolina registered agent service free with all plans including the free plan.

Free S-election filing service with review and filing of Form 2553 of the Internal Revenue Service.

Why Should You Form an S-Corp in North Carolina?

An S-Corp has inherent tax advantages over other business structures and that’s why many Limited Liability Companies and C-Corps choose to get the S-Corp tax status.

Let’s review the pros of starting an S-Corp in North Carolina:

    • No Self-Employment Tax: Members of an LLC need to pay this tax but the shareholders of an S-Corp don’t. This is a key reason why LLCs choose to get the S-Corp tax status.
    • No Double Taxation: S-Corps don’t need to pay both corporate taxes and personal income taxes, unlike C-Corps. This can result in substantial tax savings in the long run.
    • Pass-Through Taxation: The business income of an S-Corp is taxed on owners’ personal income tax returns. This not only saves taxes but also makes the process of filing tax returns simpler.
    • Liability Protection: The owners are not personally liable to pay off business debts and their assets are protected in case the business fails or incurs debts that it fails to pay.

S-Corps provide the double benefit of a formal, more trusted business structure along with pass-through taxation and other tax benefits.

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Come Up with a Feasible Business Idea

The first step for starting any business is to come up with an idea that has market potential. Your business idea should fulfill an unmet market need and should be realistic enough to be executed well.

You need to conduct through market research to check for the feasibility of your idea and prepare a business plan. A business plan should explain our business concept well and the strategic direction for your business.


Choose a Name for Your Business

Before you start a business, you must finalize your business concept and choose an appropriate name for your business. The name should be unique, relevant, and compliant with North Carolina naming requirements.

While you need to take care of the rest, Inc Authority can help you with the unique aspect via its business name check tool. Simply search for your chosen name to see if any other business in the state is using it and if it can be used by you.

Hire a North Carolina Registered Agent

Then, you’ll need to find and hire a reliable registered agent with a physical address in North Carolina. The agent should be available at the given address during business hours on all business days to receive legal documents on your behalf.

You can, of course, choose to be your own agent. However, that limits your ability to leave your office during business hours. Luckily for you, Inc Authority offers this service at a nominal cost, after a one-year free service period.


Draft an Operating Agreement or Corporate Bylaws

To get the S-Corp status in North Carolina, you must first form an LLC or a C-Corporation. In either case, you’ll need some rules of governance on how you’ll run your business, solve disputes, and make strategic business decisions.

Business documents like LLC operating agreements and corporate bylaws are helpful in this case. You can get guidance on how to prepare these business documents in great detail when you choose Inc Authority’s paid plans.

Register Your Business in North Carolina

The next step in this guide on how to start an S-Corp in North Carolina is to register your business with the North Carolina Secretary of State. Choose a business structure and then (LLC or C-Corp) submit the filled out application.

You can send in your application via fax or mail, or you can submit it online. Inc Authority offers a simple online application that you can fill out and get your business registered in no time. They’ll ensure everything is on point and avoid mistakes.


Apply for an EIN or Tax ID

Every business needs an employer identification number to ensure smooth operation. An EIN is like your business’s identity or social security number. It helps the Internal Revenue Service identify your business for tax purposes.

You will also need an EIN to hire and pay employees, file taxes, open a bank account, and more. With Inc Authority’s paid plan, you can get your EIN quickly. Their team will review and file the paperwork and get you an EIN quickly.

Apply for All Necessary Licenses and Permits

Even after you register your business and get an EIN, you can’t start operations until you get all the required licenses and permits necessary to operate your business in the state of North Carolina.

The requirements differ for different types of businesses, locality, and industry. Find out all the licensing requirements for your specific type of business in your county and obtain the required permits to start your business.


File the S-Election Form 2553 to Form an S-Corporation

The last step is to file the s-election Form 2553 of the IRS to get the S-Corp tax designation. It is a federal tax designation, which is recognized by the state of North Carolina, so you don’t need to fill out a state-level form as well.

You’ll need to complete the paperwork and provide all required information and documents to complete the process. Inc Authority can take care of the complicated process by reviewing and filing on your business’s behalf.

Why Choose Inc Authority to Form an S-Corp in North Carolina

The simplest reason for choosing Inc Authority is that it provides free S-Corp formation services. Here’s a more detailed look at why you should choose Inc Authority over other business formation service providers.


100% Free Service

Inc Authority does not charge anything for their business formation service. You just need to pay the state filing fees and they’ll take care of the rest.


Access to Experts

When you choose Inc Authority, you get access to experts on tax, banking, business formation, etc. to help you at every stage of the formation process.


Stress-Free Experience

When you let experts take care of all the paperwork and legal documentation, you get a completely stress-free business formation experience.

Start an S-Corp in North Carolina for Free


Here are the features you’ll get with this plan:

    • Business name search: Offers a free online search tool to quickly and easily check for the availability of a business name.
    • 1-year registered agent service: Assigns you a North Carolina registered agent for free for the first year and at a nominal charge after that.
    • Digital document storage: Lets you store and access your documents using your Inc Authority online account.
    • Tax advisory: Assigns experts to help you plan and file your tax returns in a way that gets you maximum tax savings.
    • LLC or Corporation formation: Assigns experts to help you prepare and file the paperwork to register your LLC or C-Corp legally.
    • S-Corp election and filing: Helps you accurately fill out and submit the S-election Form 2553 of the IRS.
    • Business funding analysis: Provides you with experts who can assess your business’s current and future funding needs.

Even though it is a free plan, it has everything you need to start a new business, irrespective of the business entity you choose. You can leverage it to start an LLC or Corporation, and convert it to an S-Corp for tax purposes.

Price: Free


You’ll get the following features/services in addition to what’s offered in the free plan:

    • LLC operating agreement/corporate bylaws: Access to templates and guidance from experts on how to draft important business documents.
    • Initial meeting minutes & resolutions: Access to experts who’ll help your Corporation hold its initial meeting and prepare the minutes of the meeting.
    • Ownership or stock certificates: Help with issuing ownership certificates or stock if you choose to raise business capital this way
    • Employer identification number: Help with obtaining an employee identification number or Tax ID quickly and easily.
    • Corporate forms and documents package: Access to free, customizable templates to prepare business documents.
    • Annual compliance notifications: Notifications informing you of your business’s compliance requirements and upcoming compliance deadlines.
    • Detailed tax consultation: Comprehensive tax consultation to help you maximize the tax benefits for your North Carolina S-Corp.
    • Web domain + 5 business email addresses: A free web domain that’s relevant to your business and similar to your chosen business name.

Price: Custom


The Fasttrack plan offers all the features of the Starter plan, along with the following additional services/features:

    • Dedicated customer success advisor: You will get a dedicated customer success manager or success advisor to help you with the entire business formation process. They’ll answer any questions you may have during the process and will set your business up for success.
    • Private banking specialist: A banking expert will help you pick out the best bank and checking account for your business. They’ll provide you with various banking options to meet different types of business needs.
    • Personalized business advisory services: You’ll get personalized, high-touch business advisory services from experts with decades of experience. They’ll ensure that your business runs smoothly for years to come.
    • Expedited preparation & filing: Given that this is the highest tier, you get expedited filing. Your business formation application will be reviewed and filed on priority, usually on the same day.

Overall, this plan offers premium, high-touch services along with dedicated support and expert guidance. The scope of services goes well beyond S-corp formation and extends to advisory services to take your business to the next level.

Price: Custom


Yes, North Carolina recognizes S-Corps or the federal S-Corp tax status. S-Corps in North Carolina get the benefit of pass-through taxation and avoid double taxation. This can save you a lot of money in the long run.

This means that S-Corps in North Carolina don’t need to pay income taxes at a corporate level. The Company’s profits pass to the owners in the form of dividends or salaries. The corporation shareholders are then taxed on their personal income and pay personal income taxes.

As such, LLCs that choose to be taxed as S-Corps avoid self-employment taxes and Corporations that get the S-Corp status avoid double taxation as they don’t need to pay corporate taxes.

Absolutely! You can start an S-Corp in North Carolina by first registering your LLC or C-Corp and then choosing the federal S-Corp special tax status.

Here’s the step-by-step process for starting an S-Corp in North Carolina and getting the S-Corp status under subchapter S of the internal revenue code:

  • Find a unique and feasible business idea and make a solid business plan.
  • Choose a unique business name that’s relevant and meets naming conventions.
  • Find and hire a reliable registered agent to receive legal correspondence on behalf of your business.
  • Prepare important documents like LLC operating agreements and corporate bylaws before you register your business.
  • Register your business with the state and get your articles of incorporation or certificate of formation.
  • Get an employer identification number to be able to hire employees, pay salaries, file taxes, etc.
  • Apply for the required licenses and permits before you formally start operating your new business.
  • FIll out and submit Form 2553 to get the federal S-Corp status and avail tax benefits.

Please note that the process can be a bit slow and overwhelming, especially if you’re a first-timer.

That’s why it’s better to get professional help and let experts take care of your S-Corp formation process. Inc Authority takes care of all the paperwork and submits an application on your behalf without charging anything for the services.

Any North Carolina LLC or Corporation can choose to become a North Carolina S-Corporation simply by filling out and submitting Form 2553 of the IRS. It is the s-election form that gets you the federal S-Corporation status and several tax advantages.

As North Carolina is one of the states that recognize the federal special tax status, you don’t need to fill out any state-level s-election form.

Inc Authority can help you get the federal S-Corp status by preparing, reviewing, submitting the form on your behalf. They’ll get the job done quickly and efficiently, ensuring there are no mistakes that can get your application rejected.

Here are some of the key differentiating factors between an LLC and an S-Corp:

  • LLC members pay a self-employment tax along with personal income taxes, while S-Corp owners only pay personal income tax on their respective salaries or taxable income.
  • The structure of an S-Corporation is considered more formal, which makes it easier to raise funding for it than for a Limited Liability Company.
  • An LLC can have as many members as needed, while an S-Corp is limited to a maximum of 100 shareholders.
  • There’s a lot more flexibility on who can be the members of an LLCs. In the case of North Carolina S-Corporations, however, there are stricter regulations. Non-resident aliens, for example, can not be a shareholder of an S-Corp.
  • A North Carolina S-Corp can issue one type of stock. LLCs, on the other hand, can’t issue stock at all.
  • The formation process and administrative hassles required to run an LLC are much easier compared to that of an S-Corporation. LLCs are also cheaper to form and run.

You can start an S-Corporation in North Carolina for free by doing it yourself or using Inc Authority’s free services. However, if you hire a premium business formation service provider, you may end up paying hundreds of dollars in service charges.

Inc Authority has a team of professionals who provide expert services and that too for free. It’s the better option that doesn’t require you to go through the hassle of doing it yourself or paying tons of money to a third-party service provider.