- What a new NC business usually needs
- The privilege license change most guides still miss
- How to find out which licenses apply to you
- Which privilege licenses were repealed, and when
- Taxes to plan for after you register
- Where free help comes from
- Don't forget your city and county
- My verdict
- Frequently asked questions
North Carolina has no single generic business license. The state's own Start My Business guide says some businesses may need several state licenses or permits while others need none. What most new businesses do need is registration with the Secretary of State, a sales and use tax number if they sell taxable goods or services, and an EIN.
Searching for a North Carolina business license usually turns up guides that make it sound like one form. It isn't. Here's what the state says you need, which licenses changed recently, and how to find out what applies to your business.
What a new NC business usually needs
| Step | Who handles it | Does everyone need it? |
|---|---|---|
| Register your business structure | NC Secretary of State | If you're forming an LLC, corporation or similar entity |
| Licences and permits for your activity | Depends on the activity | Only if your work is regulated |
| Sales and use tax number | NC Department of Revenue | If you sell taxable goods or services |
| Employer Identification Number (EIN) | IRS | Depends on your structure and whether you hire |
| Workers' compensation insurance | Check with the NC Industrial Commission | Depends on your business |
| New hire reporting | State requirement | Once you hire |
That table follows the order of the state's own Start My Business checklist on NC.gov.
The privilege license change most guides still miss
This is the point most older guides get wrong. North Carolina used to charge a state privilege license tax on many professionals. The Department of Revenue says that effective 1 July 2024, professional privilege licenses are no longer required. The tax on attorneys-at-law and other professionals was repealed from that date.
Licenses are still required for a short list of businesses:
- loan agencies or brokers
- pawnbrokers
- check casher companies
The Department also notes it doesn't currently offer a way to file, pay or renew a privilege license electronically. If you're in one of those three groups, plan for a paper process.
How to find out which licenses apply to you
- Choose your business structure. The state says to talk to an attorney or accountant first, because each structure carries its own legal and tax consequences.
- Register with the Secretary of State and confirm your business name is available.
- Use the state's Determine if your Business Requires a License or Permit tool on NC.gov.
- Call the EDPNC Small Business Advisors on 1-800-228-8443 with questions about which license or permit you need. They're open Monday to Friday, 8:30am to 4pm.
- Register with the NC Department of Revenue for sales and use tax if it applies.
- Check workers' compensation, OSHA standards, ADA and environmental rules for your type of business.
Which privilege licenses were repealed, and when
| Privilege license tax on | Status |
|---|---|
| Attorneys-at-law and other professionals | Repealed effective 1 July 2024 |
| Banks | Repealed effective 1 July 2016 |
| Publishers of newsprint publications | Repealed effective 22 October 2015 |
| Loan agencies or brokers, including pawnbrokers and check cashers | Still required |
| Installment paper dealers | Listed by the Department under its statutes |
That list is from the Department of Revenue's privilege license page. If an online checklist tells you a lawyer, accountant or other professional needs a state privilege license in North Carolina, it's out of date.
Taxes to plan for after you register
The state's guide lists the taxes a small business may face: sales and use tax, privilege license tax, franchise tax, income tax withholding, unemployment insurance tax and federal taxes. Which ones apply depends on your structure and what you do, and NC.gov also lists business and income tax seminars and online training events if you want help. If you're hiring, read my guides to North Carolina labor laws and the North Carolina minimum wage before your first payroll.
Where free help comes from
North Carolina puts more free support behind new businesses than most states. The Economic Development Partnership of North Carolina, an extension of the NC Department of Commerce, runs the small business advice line. The Small Business and Technology Development Center offers counselling, an intellectual property guide and a free startup accelerator program, and there's a statewide Small Business Center Network too. If you're unsure about a license, a phone call costs nothing and saves a lot of guessing.
Don't forget your city and county
The state guide is about state requirements. Your city or county may have its own zoning, signage or permit rules, so check with the local planning or permits office for the address you'll trade from. My general guide to whether you need a business license explains how local rules usually work in the US.
My verdict
Stop looking for a single North Carolina business license, because it doesn't exist. Register your structure, check the license tool or call EDPNC, sort sales tax if you sell taxable items, and ignore any guide that still tells you to buy a professional privilege license. That requirement ended in 2024.
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Frequently asked questions
Do I need a business license in North Carolina?
There's no single generic state business license. Some businesses need several state licenses or permits and others need none, depending on what they do.
Is the North Carolina privilege license still required?
Not for professionals. The Department of Revenue says professional privilege licenses are no longer required from 1 July 2024. They're still required for loan agencies, pawnbrokers and check cashers.
Who can tell me which license my NC business needs?
The state points you to the EDPNC Small Business Advisors on 1-800-228-8443, and to its Determine if your Business Requires a License or Permit tool on NC.gov.
Do I need to register my business in North Carolina?
If you're forming an entity such as an LLC or corporation, you register with the Secretary of State. The state also says to confirm your business name is available.
Do I need a sales tax number in North Carolina?
If you sell taxable goods or services, you register with the NC Department of Revenue for sales and use tax.
Can I renew a North Carolina privilege license online?
No. The Department of Revenue says it doesn't currently offer a way to file, pay or renew a privilege license electronically.
Do lawyers and accountants need a privilege license in North Carolina?
No, not since 1 July 2024. The Department of Revenue repealed the state privilege tax on attorneys-at-law and other professionals from that date.
Who runs North Carolina's small business advice line?
The Economic Development Partnership of North Carolina, an extension of the NC Department of Commerce. Its advisors are on 1-800-228-8443.
