How do I select a name for my business?

In order to ensure that the desired name for your business is available, it is imperative that you take the necessary steps to verify its availability with the Secretary of State. This meticulous process serves as a crucial measure to safeguard against any potential conflicts or confusion in the future. By conducting this verification, you can rest assured that your chosen name for your business is both unique and legally permissible.

How can I determine which business type is correct for me (i.e., Incorporated, LLC, etc.)?

Your business type relies on estimated income and understanding of the industry.

Do I need a business license to operate in North Carolina or other states?

Depending on your specific industry and the regulations set forth by your local government, it may be necessary for you to obtain a City License in addition to the mandatory State License required for all businesses operating in North Carolina and other states.

How do I apply to become an S Corporation?

To become an S Corporation, you need to fill out IRS Form 2553. This form tells the IRS that you want the tax benefits that come with being an S Corporation. It's important because it lets the IRS recognize your business as an S Corporation, which means you get advantages like pass-through taxes and limited liability. So, filling out and submitting Form 2553 is a very important decision that can affect your company's finances.

What is the difference between an employee and a sub-contractor?

An employee is someone who works for a company and gets paid regularly. Taxes are taken out of their paychecks by the company. A sub-contractor is someone who gets paid in full for a specific job and doesn't have taxes taken out automatically. This difference in tax withholding is important for their money management and responsibilities. A sub-contractor is responsible for providing their own Worker’s Compensation policy to perform a specific job or project for a company.

What forms are required for employment to differentiate an employee and a sub-contractor?

An employee is required to fill out a W-4, an I-9, and an NC-4 (for North Carolina) and provide a copy of their legal identification. A sub-contractor is required to fill out a W-9 and a copy of their Social Security Card or ITIN.