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So you’re thinking about moving your LLC to North Carolina, or maybe you’re just curious about what it would take. Either way, you’ve come to the right place. This guide will tell you everything you need to know about LLC domestication in North Carolina, from the forms you’ll need to fill out to the fees you’ll need to pay.
We’ve even included a few tips to make the process go smoothly. So whether you’re moving your LLC to North Carolina or just forming one here, this guide has everything you need to get started.
What is North Carolina LLC Domestication?
LLC domestication in North Carolina means changing the location or domicile of your LLC from any state to North Carolina. In other words, if you want to move your Georgia LLC to North Carolina, for instance, LLC domestication is the best way to do so.
By LLC domestication, you change the governing laws of your LLC. Domesticating your LLC in North Carolina will have the following benefits over other methods of moving your LLC to North Carolina:
- LLC domestication allows you to maintain previous business relationships.
- No need to renew contracts made in the previous state.
- No need to change bank accounts and credit ratings.
- You can retain your EIN (Tax ID Number).
- No need to rehire employees.
- No need to transfer assets.
How to Domesticate your LLC in North Carolina
There’s always something new to learn in the ever-changing landscape of business, and this same goes for LLC domestication in North Carolina. Below, we explained the process of transferring an LLC from any state to North Carolina via NC LLC domestication in 3 simple steps.
Acquire a Certificate of Good Standing
A certificate of good standing is also called a certificate of existence or certificate of status in some states. It is a legal document issued by the state authorities, usually the secretary of state.
This certificate verifies that your LLC or corporation was legally formed and operated in a state compliance manner.
In other words, this official document states that you timely pay your LLC taxes, submit LLC annual reports and fees, and follow the state laws in all business operations: hence, your business is in good standing with the state.
North Carolina LLC domestication requires that your LLC does not have any outstanding debts or taxes in the home state. So you have to pay state taxes, LLC annual fees, and other fees in the state where you initially registered your LLC.
To prove that your LLC is up to date on all important business marks, you need to submit a certificate of status while filing Articles of Domestication in North Carolina.
Approval of LLC Domestication
Before you file articles of domestication with the North Carolina Department of State, you need to acquire approval from the state where you originally formed your LLC.
Contact the state department where you initially filed your articles of organization and acquire permission to move your business out of that state.
For instance, if you want to move your Texas LLC to North Carolina, you need to get permission to transfer your LLC out of Texas from the Texas Secretary of State.
File an Articles of Domestication North Carolina
To formally move your LLC from the LLC’s home state to North Carolina, you need to file articles of domestication downloaded with the North Carolina department of state.
With North Carolina Articles of Domestication, you will see North Carolina articles of organization form as well. So you need to file the North Carolina certificate of domestication along with the North Carolina articles of domestication.
To download both forms, click on the link below:
Moreover, you also need to submit the certificate of good standing to show that your LLC does not have any outstanding state taxes or debts in the previous state.
Finally, depending on the LLC management structure mentioned in your LLC operating agreement, you need the signature of the authorized person to sign the North Carolina LLC domestication form. After completing all the information, send the complete forms to:
Mailing Address:
N.C. Department of Revenue,
P. O. Box 25000,
Raleigh, NC 27640-0100
Requirements to Complete North Carolina Articles of Domestication Form
As mentioned earlier that North Carolina articles of domestication are filed with the North Carolina articles or organization; the following information/documents will be needed to complete the LLC domestication process:
- Certificate of good standing from the previous state
- LLC domestication approval from the previous state
- Name of the domesticating entity (The name of your LLC with which you used to operate your business in the previous state)
- The name of the previous state where your LLC was registered
- The date when your LLC was formed initially
- North Carolina articles of organization form with North Carolina registered agent information
- Signature of the authorized person to initiate LLC domestication
- The effective date of the LLC domestication, if it is not the same as the date of filing of the North Carolina articles of domestication
North Carolina LLC Domestication Fee (Cost)
To convert an out-of-state LLC into a North Carolina LLC, you need to pay the following fee to the North Carolina Department of State along with the North Carolina articles of domestication:
- Articles of Domestication: $25
- Articles of Organization: $125
- Total to Domesticate and file: $150
Alternatives to LLC Domestication North Carolina
If you do not plan to move your LLC to North Carolina permanently, or for any other reason North Carolina LLC domestication does not seem suitable, the followings are the alternative to North Carolina LLC domestication:
What Next After North Carolina LLC Domestication?
Once the state of North Carolina domesticates your LLC, the laws of the previous state will no longer apply to your LLC.
Now your LLC will be governed under the LLC statute of North Carolina. Now, to remain compliant with the laws of North Carolina, you need to:
- Make sure you pay outstanding LLC federal taxes or debts in the previous state.
- Keep your registered agent information up to date. If you don’t have one, you can review top registered agent services here.
- Follow your LLC operating agreement.
- Acquire licenses and permits specifically required by the new state.
- Regularly submit annual reports and fees.
- Pay North Carolina sales tax (6% on the total sales).
Moving an LLC out of North Carolina
The North Carolina Department of state allows an LLC to move out of North Carolina via LLC domestication. However, the law of the other state must permit LLC domestication in its statute.
If the law of the other state does not permit LLC domestication, you should look for alternatives of LLC domestication to transfer your LLC out of North Carolina.
For the states that allow LLC domestication, you need to submit a North Carolina certificate of status to domesticate your LLC there. Click on the following link to get a North Carolina certificate of status.
FAQs on How to Domesticate an LLC in North Carolina
Alfie Wilson, Esq., is a legal content writer with expertise in business formation, criminal law, veterans disability, family law, DUI law, personal injury, animal welfare, and legal writing. He holds a J.D. from Emory University School of Law and has experience in appellate advocacy and regulatory matters. Alfie’s passion lies in breaking down complex legal topics for a non-lawyer audience. He currently writes for law firms and non-profits on various issues and resides in Arlington, Virginia.
