North Carolina is home to one of the fastest-growing state economies in the U.S. Whether it’s tech, healthcare, finance, manufacturing, renewable energy, food service, or another sector, small businesses in the Tar Heel State are thriving thanks to its pro-business climate.
North Carolina welcomes new entrepreneurs daily. In 2023 alone, more than 16,000 companies opened for business in the state. While the surge is heartening, new small businesses need to take a few deliberate steps to succeed.
Fortunately, these steps are common to most companies that start small. With that in mind, here are seven practical tips for those looking to start a new small business in NC.
Create a Business Plan
It’s easier to develop a business idea when you have a carefully considered plan. The business plan lays out things like your:
- Goals
- Functionality
- Growth and cash flow strategies
- Budget
- Financial projections
- Action items
Primary components of a standard business plan include:
- An executive summary
- A description of your business
- A marketing and competition analysis
- Management and organizational plans
- The product or service you will provide
- Marketing and sales strategies
- Investor requirements and funding request
- Final projections
Resources like the North Carolina Community College’s Small Business Center Network and the non-profit SCORE offer plenty of information on and help with crafting an effective business plan.
Choose Your Business Structure
You have a few options when it comes to your business structure. Your decision here affects every decision and step remaining in this post. You can opt for one of the following structures:
- Sole Proprietorship: Puts you in complete control of your business
- Limited Liability Partnership: Addresses the distribution of management and fiscal responsibilities
- Limited Liability Company: Protects personal assets like your home and auto in case your business doesn’t succeed
Talk to a financial advisor who specializes in small businesses to learn about your options. This is also a good time to pick a name for your company if you haven’t yet done so.
Get All Required Licenses
North Carolina does not have a single state-issued business license for new operations. However, depending on your business structure and location, you will have to obtain multiple “little” licenses to remain compliant. These include professional and local business licenses, DBA registrations, and permits for zoning and building.
There may be more licenses you need to get as well. In fact, NC has more than 500 business licenses and permits for state businesses. You can find a list of them in the State Department of Commerce’s Business and Occupational License Database.
Get Clear on Tax Information
North Carolina is popular with new entrepreneurs because it’s a tax-friendly state for businesses. Thanks to this arrangement, the large majority of North Carolina businesses are still open after their first year of operation. Regardless, there are some taxes business owners must account for.
Tax liabilities you may face include income, sales, franchise, and employer taxes. There may be more taxes associated with local laws or your specific industry. Whatever the requirement, speak to an accredited tax adviser so you don’t miss anything.
Line Up Financing
To get your new NC business off the ground, it’s critical that you line up outside investors. Financing can come from several sources, including:
- Bank loans
- Angel investors
- Venture capitalists
- Crowdfunding
You may also qualify for state grants or help from the Small Business Association. To find new investors, many state owners use angel investor networks, such as the North Carolina Angel Networks. Venture capital firms, crowdfunding platforms, and local economic development organizations may help bring financing to the table as well.
Learn Reporting Requirements
To stay compliant, NC small businesses must report to regulatory agencies and departments. These include annual reports sent to the North Carolina Secretary of State in addition to federal, state, and local tax returns if applicable.
Your business structure may also require other documents like payroll taxes and benefits statements. Talk to a local tax adviser to find out your reporting needs.
Get the Right Insurance
Business or commercial insurance can help your company stay intact in adverse times. Protection against general liability and business interruption is especially important. You can get further coverage on equipment, transportation, natural disaster damage, inland marine, and other areas. You must consider all your needs and the right coverage limits.
Get Business Rolling With Good Life Financial Advisors
This to-do list can set your business in motion — and Good Life Financial Advisors is ready to help you start. Our financial advisors can help you meet the start-up challenges you may face by focusing on you and your business goals.
Are you ready to get rolling? If so, contact us online to book a no-risk obligation discovery meeting.