North Carolina Corporation Costs
| Item | Details | Amount |
|---|---|---|
| Articles of Incorporation filing fee | $125.00 | N.C.G.S. § 55-2-02 |
| 24-hour expedited review | $100.00 | Secretary of State guidance |
| Same-day expedited review (by noon) | $200.00 | Secretary of State guidance |
| Corporate name reservation | $10.00 | N.C.G.S. § 55D-23 |
Filing contact: North Carolina Secretary of State, Business Registration Division, (919) 814-5400, or online at https://www.sosnc.gov/online_filing/filing/creation.
Registered Agent and Registered Office Requirements
Your North Carolina corporation must maintain a registered agent and registered office at all times under N.C.G.S. §§ 55D-30 and 55D-31. The registered agent may be an individual resident of North Carolina whose business office matches the registered office, or a domestic or authorized foreign entity with a business office at that address. Your registered office must use a North Carolina street address—you cannot use a P.O. Box.
The registered agent must provide written consent to serve before the appointment becomes effective. If you need to change your registered agent or registered office after formation, you file a Statement of Change of Registered Agent and/or Registered Office for a $5 filing fee. The new registered agent must again provide written consent.
Many entrepreneurs use a registered agent service to handle this requirement professionally. While the state does not set fees for registered agent services, commercial providers typically charge $75–$150 annually. This is an optional expense if you serve as your own registered agent and maintain a physical office in North Carolina.
Your annual report must include your registered office street address, mailing address (if different), the county where the registered office is located, and your registered agent's name and email address. Any changes to your registered agent or office must be reported in your annual report or through a separate statement of change filing.
| Requirement | Details |
|---|---|
| Registered Agent Eligibility | Individual resident of NC with business office at registered office; or domestic/authorized foreign entity with business office at registered office |
| Registered Office Location | North Carolina street address required (no P.O. Box) |
| Agent Consent | Written consent required before appointment |
| Statement of Change Fee | $5.00 |
| Registered Agent Service (optional) | $75–$150 annually |
| Statute | N.C.G.S. §§ 55D-30, 55D-31 |
Annual Report Fees and Compliance Deadlines
North Carolina corporations must file an annual report each year by April 15, starting the year after formation. The online filing fee is $21.00 under N.C.G.S. § 55-16-22, making it one of the lowest annual-compliance costs in the nation. You file online through the Secretary of State's portal at https://www.sosnc.gov/online_filing/filing/creation.
Your annual report must include your corporation's name and the report year, your principal office address and mailing address, your registered office address and county, your registered agent's name and email address, any changes to your registered office or registered agent, and the names, titles, and business addresses of your principal company officials (such as directors and officers).
If you miss the April 15 deadline, you have a 60-day grace period before the Secretary of State may administratively dissolve your corporation under N.C.G.S. § 55-6-02. Failure to file by the 60th day after the due date becomes statutory grounds for dissolution. To reinstate a dissolved corporation, you must file an Application for Reinstatement Following Administrative Dissolution, cure the grounds for dissolution, pay the $100 reinstatement fee, and pay each delinquent annual report fee ($21 per year).
| Item | Cost |
|---|---|
| Annual Report (Online) | $21.00 |
| Reinstatement Filing Fee | $100.00 |
| Registered Agent/Office Change | $5.00 |
File online at https://www.sosnc.gov/online_filing/filing/creation or contact the Secretary of State at (919) 814-5400.
Corporate Income Tax and Franchise Tax
North Carolina imposes two separate taxes on corporations: a corporate income tax and a franchise tax. Both apply to C corporations; S corporations have different rates. These taxes are separate from your corporation's formation fee and annual report fee, and they apply every year your corporation operates.
Corporate Income Tax
For tax year 2026, North Carolina's corporate income tax rate is a flat 2.00% on taxable income. This is one of the lowest corporate income tax rates in the nation. You file your corporate income tax return with the North Carolina Department of Revenue under N.C.G.S. Chapter 105, Article 4. The tax is calculated on your net income after deductions and is due with your franchise tax return.
Franchise Tax for C Corporations
North Carolina continues to impose a franchise tax on all C corporations, even those with no income. For taxable years beginning on or after January 1, 2025, C corporations pay $1.50 per $1,000 of the tax base, subject to a $200 minimum and a $500 cap on the first $1,000,000 of the tax base.
For tax bases exceeding $1,000,000, the $500 cap applies only to the first $1,000,000. Amounts above $1,000,000 are taxed at $1.50 per $1,000 with no cap.
Example: A C corporation with a $500,000 tax base pays $500 (the cap). A corporation with a $2,000,000 tax base pays $500 (on the first $1,000,000) plus $1.50 per $1,000 on the remaining $1,000,000, totaling $2,000.
Franchise Tax for S Corporations
S corporations use a simpler rate structure. You pay $200 on the first $1,000,000 of the tax base and $1.50 per $1,000 on any amount above $1,000,000. There is no cap on the excess amount.
Example: An S corporation with a $500,000 tax base pays $200. An S corporation with a $2,000,000 tax base pays $200 on the first $1,000,000 plus $1.50 per $1,000 on the remaining $1,000,000, totaling $1,700.
You cannot avoid franchise tax by electing S corporation status at the federal level. North Carolina recognizes S corporations under state law and applies its own franchise tax rates.
| Corporation Type | Tax Base | Rate | Minimum | Cap |
|---|---|---|---|---|
| C Corporation | First $1,000,000 | $1.50 per $1,000 | $200 | $500 |
| C Corporation | Above $1,000,000 | $1.50 per $1,000 | — | — |
| S Corporation | First $1,000,000 | Flat $200 | — | — |
| S Corporation | Above $1,000,000 | $1.50 per $1,000 | — | — |
File your corporate income tax return and franchise tax return with the North Carolina Department of Revenue at https://www.ncdor.gov/. Both taxes are due on the same filing deadline.
Sales Tax Registration and Ongoing Tax Obligations
If your corporation sells tangible personal property or certain services in North Carolina, you must register for sales tax with the North Carolina Department of Revenue before you begin collecting tax. North Carolina imposes a 4.75% state sales and use tax, and many counties add local or transit taxes that increase the combined rate. Sales tax registration is free and available online.
Register your business for sales tax through the Department of Revenue's online registration system at https://www.ncdor.gov/taxes-forms/register-business. The registration process is straightforward and takes place separately from your corporation formation with the Secretary of State. After registration, the Department of Revenue will assign you a sales tax permit number and notify you of your filing frequency—typically monthly, quarterly, or annually depending on your expected tax liability.
Once registered, you file sales tax returns on a schedule determined by your sales volume and remit the tax you collect to the Department of Revenue. You must maintain records of all taxable transactions to support your returns.
If you have employees, you must also register for North Carolina payroll withholding and unemployment insurance with the Department of Revenue. These registrations are separate from your sales tax registration and must be completed before you begin paying employees.
| Item | Details |
|---|---|
| State Sales Tax Rate | 4.75% (plus local/transit add-ons) |
| Registration Cost | Free |
| Registration Portal | https://www.ncdor.gov/taxes-forms/register-business |
| Filing Frequency | Monthly, quarterly, or annual (assigned by DOR) |
| Tax Authority | North Carolina Department of Revenue |
Licensing, Permits, and Professional Corporations
North Carolina does not issue a single statewide business license that covers all regulatory requirements. Instead, you may need multiple licenses and permits depending on your industry and location. The state maintains more than 700 regulatory, state-issued, and occupational licenses and permits. Your compliance obligations depend on your business type, the services or products you offer, and whether you operate in a regulated profession.
General Business Licensing
You must register for state tax purposes with the North Carolina Department of Revenue, even if you don't owe income tax immediately. Visit https://www.ncdor.gov/taxes-forms/register-business to register for sales tax, withholding tax, or other applicable accounts. Your city or county clerk's office handles local business licenses, zoning permits, and occupancy certificates. Contact your local government directly for requirements in your jurisdiction.
Professional Corporations and Professional LLCs
If your corporation provides regulated professional services (such as law, accounting, medicine, or engineering), you must form a Professional Limited Liability Company (PLLC) or Professional Corporation under N.C.G.S. Chapter 55B. You must identify the regulated professional services in your Articles of Incorporation and provide required licensing-board certifications.
Regulated professions requiring state licensure include law, medicine, dentistry, nursing, accounting, real estate, and engineering. Contact the relevant occupational board before filing your Articles of Incorporation to confirm licensing requirements and obtain any required certifications.
Key Contacts for Licensing and Permits
| Entity | Contact | Purpose |
|---|---|---|
| NC Secretary of State, Business Registration Division | (919) 814-5400 or https://www.sosnc.gov/divisions/business_registration | State business registration and licensing guidance |
| NC Department of Revenue | https://www.ncdor.gov/taxes-forms/register-business | Tax registration (sales tax, withholding, corporate income tax) |
| Your City or County Clerk | Local government office | Local business licenses, zoning, occupancy permits |
| Relevant Occupational Board | State-specific board website | Professional licensing (law, medicine, nursing, accounting, real estate, engineering, etc.) |
First-Year and Ongoing Cost Estimates
Minimum First-Year Costs (No Registered Agent Service)
When you form a North Carolina corporation, you file Articles of Incorporation with the Secretary of State under N.C.G.S. § 55-2-02. The state charges a flat $125 filing fee. You'll also owe franchise tax in your first year based on your tax base and entity type. For C corporations, the minimum franchise tax is $200; for S corporations, it's also $200 on the first $1,000,000 of tax base. You'll owe corporate income tax at North Carolina's 2.00% rate (for tax year 2026) on net income.
Your first annual report is due April 15 of the year following formation and costs $21.00 to file online.
| Item | Cost |
|---|---|
| Articles of Incorporation filing | $125.00 |
| Annual report (due April 15 of year 2) | $21.00 |
| Franchise tax (C corp, minimum) | $200.00 |
| Franchise tax (S corp, minimum) | $200.00 |
| Subtotal (formation + first annual report) | $146.00 |
First-Year Costs with Registered Agent Service
If you use a registered agent service instead of serving as your own agent, add the annual service fee to your formation costs.
| Item | Cost |
|---|---|
| Articles of Incorporation filing | $125.00 |
| Registered agent service (annual) | $75–$150 |
| Annual report (due April 15 of year 2) | $21.00 |
| Franchise tax (C corp, minimum) | $200.00 |
| Franchise tax (S corp, minimum) | $200.00 |
| Subtotal (formation + first annual report) | $221–$296 |
Ongoing Annual Costs (Year 2 and Beyond)
Every year after formation, you must file an annual report by April 15 for $21.00 and pay franchise tax again using the same rates as your formation year. You'll also owe corporate income tax on your net income at 2.00%.
| Item | Cost |
|---|---|
| Annual report | $21.00 |
| Franchise tax (C corp, $500K tax base) | $200–$500 |
| Franchise tax (S corp, $500K tax base) | $200.00 |
| Registered agent service (optional) | $75–$150 |
| Subtotal (C corp, no agent service) | $221–$521 |
| Subtotal (S corp, no agent service) | $221.00 |
Comparison: North Carolina Corporation vs. LLC
North Carolina LLCs have different cost structures than corporations. An LLC formation costs $125 (same as a corporation), but the annual report fee is $203 online or $200 by paper—higher than the $21 corporation annual report fee. However, LLCs do not pay franchise tax by default, while corporations always do. For a small business with modest income, an LLC typically costs less annually than a C corporation.
| Entity Type | Formation Fee | Annual Report Fee | Franchise Tax | Total Year 1 | Total Year 2+ |
|---|---|---|---|---|---|
| Corporation (C) | $125 | $21 | $200–$500+ | $146 | $221–$521+ |
| Corporation (S) | $125 | $21 | $200+ | $146 | $221+ |
| LLC | $125 | $203 | None | $328 | $203 |
The comparison assumes no registered agent service and a modest tax base. Your actual costs will vary based on your corporation's income, tax classification, and whether you use a registered agent service.
Conclusion
Forming a North Carolina corporation costs $125 in filing fees, with an additional $21 annual report fee and franchise taxes that range from $200 to $500+ depending on your tax base and S or C corporation election. If you use a registered agent service, add $75–$150 annually. Most small corporations spend $146–$296 in