Month: January 2024

So, you just incorporated your business in the State of North Carolina. It’s standard to wonder what you should do next. We’ve put together a checklist to keep your business marching forward.

Write your business plan.

Starting a business involves planning and making critical marketing, operational, financial, and legal decisions and activities.

Your business plan is the vision and roadmap for structuring, growing, and maintaining your new business. It should be clear and concise so lenders, management, and potential investors can quickly grasp.  

 Open a business bank account and secure a business credit card.

A small business checking account can help you handle legal, tax, and day-to-day issues. The good news is that it’s easy to set one up if you have the proper registrations and paperwork.

Keep your business and personal finances separate. When you open a business bank account, you will likely need to provide a copy of your incorporation documents and your Tax identification number (EIN). Officers and company personnel should only use the business bank account for business transactions, such as paying vendors or receiving customer payments. Once your bank account is operational, you should secure a business credit card to build up the business credit score and use it for day-to-day transactions and infrastructure purchases such as computers, cell phones, printers, office furniture, etc.

Select an Accounting Software

Whether you hire a bookkeeper or CPA or maintain the books yourself, you will need good bookkeeping and accounting software. QuickBooks is the most popular. However, other options are more cost-effective and still have all the necessary features and benefits. The key features you should consider include managing receivables and payables, tracking income and expenses, generating invoices, running reports, calculating taxes, generating balance sheets, cash flow, and profit and loss reporting.

Hire a CPA, Accountant, Bookkeeper

Unless you’re a seasoned tax and bookkeeping professional, hiring a tax and accounting professional is one of the best investments you can make in your business. Establishing a relationship with a tax professional early on can help set you up for success, and they can be a trusted adviser to your business as you grow.

Pick your business location.

Your business location is one of the most important decisions you’ll make. Whether working from your home office, setting up a physical retail or commercial area, or launching an online store, your choices may impact your taxes, legal requirements, and revenue.

Apply for licenses and permits!

Stay legally compliant to keep your business running smoothly. The licenses and permits you need for your business will vary by industry, state, location, and other factors.

Your industry and jurisdiction determine you. Most businesses need local, state, and federal licenses to operate. Check with your local government office (and even an attorney) for licensing information tailored to your area.

 Secure Business Insurance

Most businesses will need insurance, especially if you have employees. There are different kinds of business insurance depending on your business type. You must find the right coverage that protects your business and you personally. We encourage you to see an insurance agent to assist with your insurance needs. Business insurance is tricky. We suggest you find an independent insurance brokerage to help you shop for the best coverages instead of going directly to an insurance company. An independent insurance agent represents several insurers so they can shop for the best rates and coverage options.

Consider Legal Counsel

Not all businesses need an attorney; however, selecting an attorney should be a risk mitigation step if you are operating in a highly regulated industry. For companies not operating in highly regulated industries, the legal counsel can help you with other things, including, but not limited to, business contracts, writing or reviewing your company terms of service, handling legal claims, insurance separation between you personally and your business to maximum your business and personal protection, and much more.

Launch a business website.

An online presence is critical to demonstrate credibility and serve as a client acquisition and support tool for your business. A website also creates a presence for your business 24/7, 365 days per year. Setting up a website and social media profiles early on, even if they’re simple, can help you expedite client acquisition and develop relationships with customers. 

SEO and PPC digital marketing

Once your website is up and running, you must optimize it for search engines (SEO). Optimizing your site for SEO helps drive natural or organic traffic to your website. Think about what happens when you go to “GOOGLE” something. While SEO helps drive low-cost or free traffic to your website, PPC is a digital marketing strategy where you pay to drive people who are looking for the goods or services you provide to your website. You may need to hire a digital agency to help with this, or you could spend a lot of time, money, and energy that will lead to your desired results. SEO and PPC are intended to help you acquire traffic and clients. When a potential customer searches for a specific service or product, the search engine can point them to your site or show them one of your digital ads. SEO is a long-term strategy, so don’t expect much traffic from search engines initially—even if you’re using all the right keywords. PPC can help you drive more short-term traffic. The two working together is core to an excellent digital marketing strategy. 

Create Relevant Content

Provide quality content on your website that makes it easy for customers to find the correct answers to their questions. Content marketing ideas include blogs, videos, free how-to guides, customer testimonials, and demos.

Get Listed in Online Directories

You’ve probably used online directories like Google My Business, Yelp, and Facebook to find local businesses. Some city halls and chambers of commerce have business directories, too. Include your business in as many relevant directories as possible. You can also create listings for your business on specific directories that focus on your industry.

Select the Right Business Technology and Tools

Business tools can make your life easier and your business more smoothly. The right tools can help you save time, automate tasks, and make better decisions.

In addition to the tools already covered, consider the following tools in your collection:

• POS and Merchant services: Point of Sale and Merchant providers allow you to accept credit cards and alternative payment types. When customers make a purchase, money deposits go directly into your business account. You can also use merchant services to set up recurring billing or subscription payments. Your bank may provide merchant services. Other popular ones include QuickBooks, Square, and Strip. 
• Project management: This software allows you to plan, execute, and track orders and projects. A project management tool can also help employees manage tasks and allocate resources.

Develop a Social Media Strategy

Your potential customers use social media daily—you must also be there. Post content that’s interesting and relevant to your audience. Use social media to drive traffic back to your website, where customers can learn more about what you do and buy your products or services.

You can be on only some of the available social media platforms. However, it would help if you had a presence on Facebook and Instagram because they offer e-commerce features. 

Summary

Congratulations on starting your business. You knew it would not be easy, but there is arguably nothing more satisfying than being your boss. We hope this checklist helps provide you with some of the critical initial steps you should consider as you embark on your new endeavor.

The Tar Heel State is full of opportunities for those looking to start a business. In this post, we’ll guide you through some of the basics in a step-by-step process for starting a business in North Carolina. 

Step 1: Pick a Name

Naming your organization is one of the hardest things you’ll do! Choose a name that conveys your company’s purpose or reflects the products or services sold.  Choosing a good name is critical for branding and future customer acquisition. 

The name of a North Carolina corporation should end with the words “corporation,” “incorporated,” or “company,” or the abbreviations “corp.,” “inc.,” or “co.”

A corporation’s name should be distinguishable from all alternative legal entity names on file with the Department of State.

Your company’s name should be recognizably different from the names of different business entities already on file with the North Carolina Secretary of State. The Secretary of State’s business name database checks names for convenience to see if they have been used already. Additionally, you cannot reserve a name before incorporating.

You cannot use a name currently registered in the state, so you also want to check the availability of your chosen name. Consider a few variations that can be registered instead if your chosen name is taken.

Step 2: Choose a Business Structure

Registering your business as a legal entity with the State of North Carolina helps to distinguish a separation between you as an individual and your company. This separation provides you with limited liability protection, an important protection that prevents you from being held personally responsible for lawsuits filed against your business. Creating a proper legal structure for your business exhibits credibility to prospective customers and potential investors.

When deciding on a business structure, there are several options.

• Limited Liability Company (LLC): Today, small business owners choose an LLC as the most common entity type. An LLC is often considered a “hybrid entity” as it provides the liability protections a standard corporation offers with the simplicity and flexibility of pass-through taxation. LLCs are attractive among small business owners because they require less record-keeping and fewer annual reporting and documentation requirements.
• Corporation: A C corporation is ideal for any business looking for a more formal corporate structure. Since corporations allow the issuance of stock, they are generally more attractive to entrepreneurs and investors who may want to invest in your business, making them extremely popular for companies seeking outside investment. Corporations also allow a business to deduct certain benefits, like employee health insurance and dental plans, which can add up to substantial yearly savings. C corporations are also required for all nonprofit organizations.
• Sole Proprietorship: A sole proprietorship is an informal business structure where an individual runs an unincorporated business without registration with the state. Operating your business as a sole proprietorship is the simplest way to run a business, as all taxation passes directly to the owner. However, operating as a Sole Proprietorship is not advisable in most cases, as it creates greater risk to the owner and operators. Operating as a sole proprietorship opens you up to potential legal and risk exposures since the owner is personally liable for any debts or lawsuits filed against the business. While it can be suitable in certain situations, running your business as a sole proprietorship in North Carolina is not recommended.
• Nonprofit: A nonprofit corporation (a type of C corporation) is a business formed to further a particular social cause or advocate for a specific point of view. Rather than earning a profit, a nonprofit corporation reinvests its revenue to achieve its mission and advance its programs instead of making a profit for owners and shareholders. Typically, nonprofits are funded by donations. One unique feature of a nonprofit is its eligibility for tax-exempt status.
• DBA (Doing Business As):  A DBA is also called a “fictitious business name” or “assumed” name in some states. While a DBA is not a business entity, it can be legally filed against any business type to operate under a business name other than yours. If you plan to use an alternative name in your marketing or with your customers, you should consider a DBA in addition to registering your company name.  For Example, File North Carolina is a DBA for BryteBridge File Co. Our legal name differs from how we do business or present ourselves to the public, so we registered File North Carolina as a DBA.

Step 3: Determine the Incorporator and Registered Agent

After selecting a name, you need to designate an incorporator and registered agent. What are these roles? Let’s explore!

• Incorporator: The Incorporator incorporates the business. They are responsible for filing the paperwork with the state, and their responsibilities end once the company is established.
• Registered Agent: A Registered Agent plays a vital role in handling legal documents received by your organization. The registered agent must be either a resident of North Carolina or a corporation authorized to conduct business there. By appointing a qualified registered agent, you ensure that critical legal communications and notices are promptly received and appropriately addressed on behalf of your organization.

Step 4: File Articles of Incorporation

This step is a big one! Incorporating legally establishes your company in North Carolina, making everything official. The Articles of Incorporation are legal documents that include essential information about the business, such as its name, address, officers, incorporator, registered agent, and more.

The corporation’s existence begins as soon as you file the articles of incorporation. We like to refer to the articles of Incorporation as the official “Birth Certificate” of your business.

Preparing Your Articles of Incorporation is a must if you’re forming a corporation in North Carolina. To incorporate a company in North Carolina, you must file a form known as Articles of Incorporation with the North Carolina Department of State. Simultaneously, pay a business filing fee.

Unless the articles specify a later date. Enclosed within the articles of incorporation are many topics that require immediate attention. At the very least, they need to contain the following:

• Name of the corporation
• Street address of the principal place of business
• Corporate purpose
• Details on the corporation’s stock structure
• Registered agent
• Names and addresses of incorporators.

North Carolina charges a filing fee and typically processes applications in 5 to 7 business days.

Step 5: Request a Federal EIN

Once you have obtained your Articles of Incorporation for your nonprofit organization, the next step is to apply for a Federal Employer Identification Number (EIN). This unique number serves as an identifier for your organization and is issued by the Internal Revenue Service (IRS). An EIN enables your company to conduct various business activities, such as opening bank accounts, filing state and federal taxes, and hiring employees.

Step 6: Stay Compliant

Compliance refers to everything necessary to keep your business legal active.

Here’s what’s required in North Carolina:

Annual Report Filing

Who Must File an Annual Report?

The following foreign and domestic companies must file an annual report to the North Carolina Secretary of State:

• C Corporation
• Limited Liability Company (LLC)
• Limited Liability Partnership (LLP)
• Limited Liability Limited Partnership (LLLP)

A domestic company is formed in the state, and a foreign company is formed in a different state but operates in North Carolina.

The following company types are not required to file an annual report to the North Carolina Secretary of State:

• Professional Corporations
• Professional LLCs
• Nonprofit Corporations

Charity Registrations (Nonprofits Only)

Nonprofits must file an initial charity registration once they have established the nonprofits and then must file an annual renewal. Charity Registration Renewals are due annually within 5.5 months after the close of your fiscal year. Remember, failing to renew can lead to the organization illegally soliciting funds.