Before launching your North Carolina business, you need to educate yourself on North Carolina tax regulations and policies. By doing so, you’ll be able to know state tax requirements as well as your obligations and responsibilities as a business owner and taxpayer.
Compliance of federal and state taxes are mandatory in North Carolina and even the rest of the states. This is the reason why you need to know tax regulations.
State taxes differ from state to state and it is also influenced by several factors such as your legal entity and the nature and size of your small business. (For instance an LLC, Corporation, DBA, etc.)
Failure to comply with business taxes can place your business in an unfavorable situation. You can be fined with large amounts of fees or your entity status will totally be revoked. If you want to avoid this, be prompt in complying with federal and state taxes. To help you get started, this simple guide will walk you through the steps of business tax compliance.
The North Carolina Department of Revenue has the most comprehensive information and procedures when it comes to filing and complying with state taxes. Here you will see and gain access to tax information, forms, instructions, publications, reports, electronic filing procedures, and FAQs, for individuals, businesses, and practitioners.
North Carolina imposes corporate income tax to businesses operating within the state. Corporate income tax is applicable to corporations. The corporate income tax rate in North Carolina is 6.9%. For a more comprehensive view on North Carolina’s Business Income Tax, you can access the Corporate Income Tax Information page provided by the North Carolina Department of Revenue.
If you want to hire employees in your business, you need to register for an NC Withholding Tax Identification Number. There are also additional requirements which you must comply based on the type of small business you’re operating.
To receive further assistance, you can visit the Taxpayer Service Centers or call its toll free hotline at 1-877-252-3052 inorder to purchase a New Business packet. The latter is a booklet that has information on the requirements related to the proper licenses and applications that you need. The North Carolina Department of Revenue has also prepared a Withholding Tax FAQs section for you.
Part of doing business in the state is to comply with sales and use tax. For faster and accurate compliance, you can check out this Sales and Use Tax guide provided to you by the Department of Revenue. You can also access this page to learn about the E-500, Sales and Use Tax Return.
Business tax compliance is one challenging task that you need to face head on. It’s a long process that needs to be done with efficiency and accuracy.
If you’re a new entrepreneur or a first-time business owner with little to no experience, this can be a little difficult for you. However, with the use of tools and resources, you’ll be able to comply with all your state taxes with ease.
To lighten your workload and make things a little easier for you, we’ve listed useful resources which you can use for successful tax compliance. Check out and read each one below!
Creating a system of accounting and record keeping should be your top priority to prepare for the most difficult time of the year – tax period. While you can definitely do this on your own, it’s best that you use the assistance of accounting softwares such as Xero, QuickBooks, and FreshBooks.
They make accounting, bookkeeping and expense tracking so much easier with their intuitive and modern tools. If you use these softwares, you will be able to save time, effort and energy!
This article is informational in nature and should be taken as such. It is not a replacement for legal advice. For specific answers on complying with business taxes, you can ask your attorney for proper and professional advice.