Sole Proprietorship in Charlotte, NC

By Elizabeth Rayne

Sole proprietorships are a common business structure because they are relatively simple to set up, and provide for flexibility in management. Generally, business formation and registration is handled by the secretary of state's office, while local offices handle business name registration and local licensing. A sole proprietor does not have to register or file formation paperwork if the business is filed under the owner's name. There are specific filing requirements, however, for sole proprietorships doing business in the city of Charlotte, and for sole proprietorships that use an assumed name, hire employees or collect sales tax.

Formation

If you plan to do business under your own name, you do not need to file formation paperwork or register with the state of North Carolina. A sole proprietorship is formed as soon as you start doing business as an individual. A sole proprietorship is essentially the alter ego of the business owner because the income and assets of the business are not distinguishable from the owner. The owner of a sole proprietorship remains personally liable for the debts and obligations of the business.

Assumed Name

If you plan to do business under a name other than your own, you must file an Assumed Name Certificate with the Register of Deeds of Mecklenburg County. To find out if your preferred business name is available, you can use the office's online search, or search at the Register of Deeds' office. The form is available on the North Carolina Department of Commerce website. Once you complete the form and have it notarized, mail or hand deliver the assumed name document with the appropriate fee to the Register of Deeds.

Ready to start your LLC? Start an LLC Online Now

Privilege License

All businesses operating in the city of Charlotte must apply for a Privilege License prior to beginning operations. The amount a sole proprietorship will pay for a privilege license is based on the estimated revenue or gross receipts of the business. Gross receipts tax, as well as potential additional taxes, such as those for hotels, retailers and other businesses, must be paid before the city will issue a Privilege License. Additionally, the Mecklenburg County Zoning Department will review license applications for approval, and some licenses may also be reviewed by the departments of environmental health, police, fire or building standards. You can find the Privilege License application on the county Tax Collection's website. The application must be submitted with the appropriate taxes to the tax collections department.

Department of Revenue Registration

If your sole proprietorship plans to collect sales tax or hire employees, you must register with the state Department of Revenue. To register, sole proprietors must submit a completed Business Registration Application, Form NC-BR. After the department reviews your application for the Sales and Use Tax Account, it will mail information and pre-printed forms to you. The department will also mail a Certificate of Registration that sole proprietors must display at their place of business. Alternatively, Individuals can visit the taxpayer service center in Charlotte to go through the registration process.

Business Personal Property

North Carolina law requires that sole proprietors in Charlotte list all businesses and professional personal property with the Mecklenbeurg County assessor. The required form is available on the Mecklenburg County Assessor's website. On the form, you must include all equipment, office furniture, company vehicles and other property used by the business. The form must be submitted annually to the Mecklenburg County Accessor by January 31.

Ready to start your LLC? Start an LLC Online Now
How to Start a Sole Proprietorship in Maryland
 

References

Resources

Related articles

Kentucky Rules on Sole Proprietorship

Sole proprietorships are common business structures because they are relatively simple to set up and provide flexibility in management. As a sole proprietor, you may independently manage your business and retain its profits. However, sole proprietorships do not provide limited liability as other business entity types, such as corporations, provide. Kentucky business registrations are handled by the Business Services section of the Secretary of State's office. The state requires all business types, including sole proprietorships, to also pursue professional licensing and tax registration.

How to Form a Sole Proprietorship in Ohio

Many Ohio businesses are formed as sole proprietorships because this type of business is relatively simple to set up, and the individual owner maintains complete control over the management and profits of the business. A sole proprietorship may be formed without any official registration with the state, but there may be additional licensing and registration requirements depending on the type of business.

Guide to Setting Up a Sole Proprietorship in Florida

A sole proprietorship operates as an alter ego of the business owner who runs it. Since the owner is personally responsible for business affairs, Florida does not require a separate state-level registration for the business as long as you operate it under your own name. If you want to run the business under a different name, you must register it with the state. Depending upon the type of business you are conducting and where you are located, you may also have to obtain local licenses and permits to before you can open for business.

LLCs, Corporations, Patents, Attorney Help

Related articles

The Requirements of a Sole Proprietor in Pennsylvania

Sole proprietorships are common business entities because they are simple to set up, and have relatively few filing ...

Difference in Business License & Registering a Business

Starting a business can be complicated. In addition to hiring employees, finding a location and establishing clientele, ...

How to Register a Sole Proprietorship in Tennessee

Tennessee has no filing requirement to register a sole proprietorship. Instead, the entity is legally formed when a ...

Documents and Forms Needed for Illinois Sole Proprietorship Laws

Illinois law requires a sole proprietorship to register with various state and local government agencies as a condition ...

Browse by category
Ready to Begin? GET STARTED