Staying compliant in North Carolina

How does the North Carolina annual report work?

Every LLC files an annual report with the Secretary of State's Business Registration Division by April 15 each year, starting the year after formation, and the state charges $200 by paper or $203 online.¹

The timing rule has a useful quirk. The first report is not due in the year you form the LLC. The state's due-date page ties it to the year after creation, so an LLC formed in February and one formed in November both file their first report the next spring.

What the report asks for

The annual report statute sets the contents. Summarized, the list reads: Registered agent and office, principal office address and phone, names/titles/addresses of principal company officials, and a brief description of the business.³

Most of it repeats what the state already has. The list of principal company officials, with their names, titles, and business addresses, is the part most likely to have changed, because it shifts when a member leaves, a manager is added or someone moves. Have current names and business addresses ready before you start. The report also asks for a brief description of the business; a sentence or two covers it.³

Paper or online filing

• On paper, the fee is $200.¹
• Online, it is $203, which includes a $3.00 electronic filing fee for credit cards.¹
• Paying online by bank transfer is different: ACH carries a $2.00 fee instead.¹

For creating new entities, the Secretary of State quotes 5 to 10 business days. These sources give no separate turnaround for annual reports, so file well before the deadline whichever route you choose, and keep the confirmation.⁴

If you run LLCs in more than one state, the rules shift. Virginia's compliance rules, South Carolina's and Georgia's each set their own rules, and annual reports explained covers how these filings work in general.

Does North Carolina charge LLCs a franchise tax?

The facts gathered for this page include no North Carolina franchise or privilege tax rule for LLCs, so this page doesn't state one. Ask the North Carolina Department of Revenue, which administers state taxes.

The answer can depend on how the LLC is taxed. An LLC that has elected to be taxed as a corporation is in a different position from a single-member LLC that is ignored for federal tax purposes, and a tax professional can tell you which applies to yours.

Keep two separate lists. The Secretary of State handles the annual report and your agent record; the Department of Revenue and the IRS handle tax registrations, returns and payments. Filing the annual report on time does not satisfy any tax obligation, and paying taxes does not file the report. Sales tax, payroll withholding and local business taxes all depend on what you sell, where, and whether you have staff, so register with each agency as your business requires.

What happens if a North Carolina LLC files late or loses its agent?

The state's LLC fee statute lists no late fee for a missed annual report, but an LLC that doesn't file on or before the 60th day after it is due gives the state grounds for administrative dissolution, and reinstatement costs $100.^{2, 5}

Here is the rule in brief: No late fee in the LLC fee statute; failure to file within 60 days after the due date is grounds for administrative dissolution. The consequence is dissolution rather than a fine, so a short delay costs little beyond the normal fee, while a delay past the grace window can cost the LLC its standing.⁵

The dissolution grounds tied to these duties

The dissolution statute lists several grounds. Three relate to the duties on this page.

1. The annual report was not delivered on or before the 60th day after it is due.⁵
2. The LLC has been without a registered agent or registered office for 60 days or more.⁵
3. The LLC fails to report an agent change or resignation within 60 days.⁵

The second and third grounds can happen without you doing anything wrong at the time. An agent who resigns ends the appointment on the 31st day after filing, and if their notice went to an old address you may not know until the state writes.⁶

Reinstatement

A dissolved LLC can apply to reinstate on Form L-08, the Application for Reinstatement, for $100. The sources for this page don't list what must be brought current before the state accepts it, so ask the Business Registration Division what your record needs and gather it before you file.²

While dissolved, an LLC loses good standing. A lender, landlord or licensing office that asks for proof of standing may stop there. If the business kept trading or signed contracts during that period, talk to a lawyer about the effect. The North Carolina registered agent guide covers the agent-related grounds in more depth.

How do you keep your registered agent current in North Carolina?

Keep an agent whose business office is identical with the registered office on file at all times (N.C. Gen. Stat. § 55D-30), and file Form BE-06 for $5 whenever the agent or registered office changes.^{2, 7, 8}

Two habits cover most of the risk. Read every notice from your agent, because a resignation notice is the first warning. And check the agent and office on your annual report each spring, because the report repeats them back to you. The step-by-step order for switching agents, filing before you cancel, is in the North Carolina registered agent guide and the general walkthrough on changing a registered agent. Foreign LLCs registered here (the certificate of authority costs $250) carry the same duty.⁹

What provider compliance features do here

North Carolina has an annual report, so the reminder and filing plans that agent services sell have a real deadline to track. The providers below are in the order of our score, highest first, with ties in editorial order.

• Tailor Brands says its agent can file the annual report if instructed. Annual report filing comes with its Essential and Elite packages and is not in Lite.^{10, 11}
• ZenBusiness charges $100 per report for annual report filing, or $199/year for its Worry-Free Compliance bundle.¹²
• LegalZoom sends email reminders about annual report deadlines via Compliance Calendar and files the report for $99 + state filing fees, billed once.^{13, 14}
• Bizee offers annual report filing, but its page has no standalone price stated.¹⁵
• Swyft Filings sells ComplianceGuard at $199/year, which includes report filing; its listing describes the terms as a 14-day free trial then auto-charged.¹⁶
• doola includes annual report notifications with its agent service.¹⁷
• Northwest charges $100 + state fees per filing, billed when it files, and its page says agent customers will automatically be enrolled in that service.¹⁸
• Rocket Lawyer's report filing costs $100 with Pro membership, excluding state fees.¹⁹
• InCorp charges $89 + state fees.²⁰
• Harbor Compliance charges $199 per state per year plus filing fees.²¹

Read "state fees" in those terms as North Carolina's own report fee, $200 by paper, $203 online, added on top. A filing plan saves time; it does not move the deadline. If the plan files late or with the wrong official listed, the dissolution grounds above still run against your LLC, so confirm each year that the report went in. Reminders are only as good as the email on your account, so update it when it changes.

Prices and renewal terms for each agent sit side by side in the North Carolina registered agent comparison, and services with compliance tools compares the features across states. Before dropping a service, read how to cancel a registered agent.

What does a North Carolina LLC calendar look like in its first and second year?

The formation year has no annual report; the first one falls due by April 15 of the following year and repeats on that date every year after.¹

The year you form the LLC

1. Articles filed. The North Carolina LLC formation guide covers the filing, and the cheapest ways to form an LLC in North Carolina adds up the costs.
2. Set up notices. Confirm the email and phone your agent will use, and note when its service renews.
3. Register for taxes with the Department of Revenue and the IRS as your business requires, on their own calendar.
4. No annual report is due this calendar year.

The following year

1. Early in the year, gather the current names and business addresses of your principal company officials.
2. File the first annual report by April 15, online ($203) or on paper ($200).¹
3. Check the agent and registered office on the report. If either has changed, file Form BE-06.²
4. Decide whether to keep your agent service before its renewal date.

Every year after

The same spring report, the same agent check, and the same renewal decision. If a report is ever missed, file it before the end of the grace window (on or before the 60th day after it is due) rather than waiting for a notice.

Terms on this page, such as administrative dissolution and principal company officials, are defined in the glossary. For what a registered agent does day to day, read what a registered agent is.