Choosing a Name
One of the first and most important decisions your company will make is the choice of a name. Here are some basic guidelines to consider in making this decision:
- Choose a name that is easy to remember.
- Choose a name that is easy to pronounce.
- Choose a name that clearly communicates what the business does.
It is also a good idea to choose a name that reflects the legal status of the business. (Ex. Bob’s Company, LLC or Bob’s Company, Inc.)
Reserving the Company Name
If you are registering with your state, the next step is for you or your attorney to check the availability of the name for your business and reserve it. In North Carolina, this is easily accomplished by contacting the North Carolina Secretary of state (1-800-228-8443) or by visiting the web site at http://www.secretary.state.nc.us/corporations/. Forms and fee schedules are available on the website.
Registering with the Internal Revenue Service
Almost all new businesses are required to obtain a federal identification number. With sole proprietorships and single member limited liability companies, a social security number is sufficient. A federal identification number is easily obtained by visiting the IRS web site at http://www.irs.gov or by completing Federal Form SS-4 and mailing or faxing it to the IRS. If you need assistance, we are happy to help.
Registering with the State
In addition, the new business must register with the state. In North Carolina, two separate state identification numbers may be required. An employer income tax withholding number is required if salaries are to be paid to employees in North Carolina. A sales and use tax number is required if the business sells tangible personal property at retail. An application for these identification numbers can be obtained by calling the North Carolina Department of Revenue at 1-877-252-3052 or visiting www.dor.state.nc.us.
Registering with the City
In addition to registering with North Carolina, new businesses are required to obtain a business license from the city in which they operate. An application can be acquired by calling your local business license office and requesting one. In Charlotte, you can reach the business tax office at 704-336-6315 or get an application on-line at www.charmeck.org.
