If you are thinking about opening a business and setting up a shop in North Carolina, you came to the right place. There are many things you should keep in mind when opening a business in the Tar Heel State, one of which is selecting a name for your business.
In North Carolina, you can’t duplicate a business name that’s already in use. To avoid that, you may want to find out if your name is available before registering. In this article, we’ll explain how to conduct a business name search and provide additional tips to get your North Carolina LLC up and running.
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How to check business name availability in North Carolina
Now that you have read much information about North Carolina small businesses and learned how to create a good name for your business, it is time to check and see if the business name you came up with is free for you to use. Here is how:
1. Visit the North Carolina Secretary of State Website
On the NC SOS website, you will find a name search tool that allows you to search the database of registered businesses. You can search the exact name you thought of and see the results.
2. Enter search and see results
Enter the business name you had in mind, and if there are no results or exact matches, the name is available for you. But consider reserving it before it’s too late.
If you run the search and there’s an existing business with the same name, you’ll need to come up with a different name. If it’s already in use, it’s considered unavailable.
3. Consider reserving a name
After running a North Carolina business name search, you have two options: You can reserve a name or you can register the name. You should reserve the name if you aren’t planning to set up the business immediately.
North Carolina allows business owners to reserve a name for 10 years for $10.
To do so, you’ll fill out a quick form and provide the payment.
Again, you don’t need to reserve a name if you plan to officially set up your business with the state of North Carolina, but if you’re just doing some homework and plan to set up your business later, reserve the name now so it’s not taken when you’re ready.
4. Check domain name availability
We created a tool that makes it easy.
How to name your North Carolina business
Now that you know a little more about the business landscape in the state, it’s time to start generating a list of names for your business. To do so, follow these steps:
1. Write down basic details about your business
Start by creating a verbal picture of your business. Think about what your business will offer and who it will serve. Will you sell a specific product or service? Who’s going to buy it? Jot down a few details about your company as a starting point.
Next, start creating a list of adjectives that describe your business. Think in terms of keywords. What keywords would your customer use to find the product or service that you offer? Write them down.
2. Stay away from initials and hard-to-say words
There are plenty of businesses that include initials, like A&J Plumbing, but consider upping your game with something a bit more creative and descriptive.
The same goes for names that are hard to say. If your last name is Stackowaski, for example, it’s not conducive to a business name because it’s too hard to pronounce.
3. Don’t pigeon-hole your business
Be careful not to select a name that limits your company’s potential growth. Think about where your business will be in five, ten, even twenty years, and take that into consideration when creating a name.
A company named Bob’s Bargain Books, for example, is a good name, but what if they plan to sell vintage records and cassettes down the road? The name only refers to books, so when vintage music is added people won’t associate it with the store.
4. Consider using a name generator
At this point, you probably have a list of a few ideas. Rather than brainstorm a bunch of different combinations, why not try a name generator? You simply enter a few of the adjectives that you came up with into the search bar and you’ll get a list of possible names.
Name generators can take some of the hassles out of creating a name. Most name generators will only show you available names too, which is helpful.
Check out some of Namechk’s name generators below:
What kind of business structure is right for your North Carolina company?
As you research available business names in North Carolina, you’ll also want to think about what kind of business you want to establish. There are a handful of options to choose from, but some of the most common are Sole proprietorship and LLC.
- A sole proprietorship is ideal for small businesses with no employees that want to test their business out. There’s virtually no paperwork to set up this kind of business, which is a plus. However, a sole proprietorship is not a separate business entity, which means you’re financially and legally responsible for any problems that might arise.
- An LLC, or limited liability company, provides a certain amount of liability protection. Your personal assets and your business are separate with this business structure, which means if the business is sued or goes bankrupt, you will not be forced to use your personal cash reserves to bail the business out.
Steps to register your North Carolina business
Ready to set up your business in NC? Here’s what you do:
1. File your Articles of Organization
Visit the North Carolina Secretary of State website and fill out the Articles of Organization. To fill this out, you’ll need to have an available business name, address, and contact information.
2. Name a registered agent
You’ll also need to name a registered agent. A registered agent is the point-person for your company who will receive important documents like tax notices or legal documents.
A registered agent must be trustworthy and be available during regular business hours when documents are delivered. The business owner can serve as the registered agent in North Carolina, or another person or company can be named.
You might decide to name your accountant or co-founder, for example. You can also hire a registered agent service to serve in this role. Northwest Registered Agent, ZenBusiness, and Bizee are a few examples. These companies will receive documents on your behalf and notify you of their arrival.
3. Pay the filing fee
Every state charges a filing fee to file LLC formation documents with the government. In North Carolina, the cost is $125.
4. Wait for approval
North Carolina will review your application and typically provides approvals within five business days. Once approved, your business is officially set up.
Our picks of the best registered agent services
Hiring employees in North Carolina
Hiring your first employee can be exciting. Some people think it is a lot of work, but as long as you follow a step-by-step process, you can legally hire your first employee or group of employees in no time. Here are the steps.
1. Register as an employer
Registering your business might not be enough to run a business. You will need to register as an employer as well by getting a Federal Employer Identification Number from the IRS. You will also need to obtain and pay for an Unemployment Insurance Tax Number from the North Carolina Division of Employment Security.
2. Verify employment eligibility
You will need to fill out the I-9 Employment Eligibility Verification to make sure you are about to hire someone who can legally work in the United States. The person must be a permanent resident with supporting documents or an American Citizen with a passport or ID to prove it.
Usually, the employee should complete these forms on their first day of work until the end of the business day. You don’t need to submit these forms to any agency, but you will need to keep the form on file.
3. Get Employee Withholding Allowance Certificate
Every employee will have to sign a W-4 or Withholding Allowance Certificate on or before the date of employment. This form determines how much federal income tax will be withheld from the employees’ wages.
4. Reporting
For every person you hire in North Carolina, you will need to report it to the North Carolina Department of Health and Human Services within 20 days. You will need employee information, such as the name, address, SSN, date of birth, and the employee’s start date.
North Carolina small business facts
Before you learn how to come up with a name for your business, you might want to read up on these North Carolina small business facts from the U.S. Business Administration:
- In North Carolina, there are a total of 934,604 small businesses, which makes up for 99.6% of all businesses in the state.
- North Carolina small businesses employ 1.7 million people, which is almost half of the employed people in the state.
- 120,268 of those employees are self-employed minorities who own their own business, which shows that the rights are equal and anyone can thrive when opening a business in this state.
- The unemployment rate in North Carolina went way up to 12.2% in April 2020 from 4.1% in April 2019.
- The growth rate in North Carolina grew at an annual rate of 2.4%, which was a lot faster than the overall United States growth rate of 2.1% in 2019.
FAQs
To further help entrepreneurs, check out these frequently asked questions about starting a business in North Carolina:
Why is it so important to check on business name availability?
North Carolina will not allow two businesses in the state to have the same name. There are many reasons for this, but at its core, it’s to avoid any confusion. For example, if someone plans to sue Bob’s Fruit Stand and there are two of these companies in the state, things can get complicated quickly.
All businesses must have a unique name. And, you can’t just add a hyphen to a name to make it different. Each name must be “distinguishingly different.”
What’s the easiest way to fund my small business in North Carolina?
There are many resources where you can fund your startup in North Carolina, such as lenders, banks, grants, and more. However, one of the easier options is to save the money yourself or ask family and friends for a loan.
Many people partner up with friends and family, as they are often easier to convince if you have a robust business plan. Plus, borrowing money from friends and family can probably save you from loan interests.
Are there loans or grants available in North Carolina?
Yes, you can go to a local bank to request a business loan or you can apply for a North Carolina business grant. Both options will require a solid business plan, an in-depth application process, and patience since the process can sometimes take weeks.
What is considered a small business in North Carolina?
Any business with fewer than 500 employees in the United States is considered a small business. Whether you run a sole proprietorship, limited partnership, or LLC, your business will still be considered a small business, unless you run a corporation with over 500 employees.
Can you operate a business without a permit in North Carolina?
North Carolina does not have or issue a single business license. Depending on the city or county you want to operate your business, you need to visit the local city or town clerk and find out the list of requirements you need to operate.
Even if you are to run a business out of your home, you will need an approved zoning permit to operate. You can apply for a Customary Home Occupation Permit by visiting the city clerk in the city or town you live in.
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