How to Best Protect a Sole Proprietorship in North Carolina
Many people dream about opening their own business, but if you want to make that dream into a reality, you have to learn the legalities of operating a business as well as marketing and other business skills. North Carolina requires businesses to register with their county as well as obtain various business licenses, and businesses must comply with federal laws, as well. The best way to protect your sole proprietorship from harm is to learn about and follow all business regulations and pay all taxes on time.
Other People Are Reading
Instructions
-
-
1
Register your business name with the register of deeds in your county. This stops anyone else in North Carolina from opening a business using the same name. Have several back-up business names available in case the name you have chosen is already in use by another entrepreneur. Sole proprietors can also trademark their business name with the federal government, if they wish.
-
2
Learn about licensing laws in your county and city. Contact your local North Carolina Small Business Network office to ask what licenses you need to open your business. Apply for any licenses you need well in advance of your first day of business.
-
-
3
Apply for an employer identification number from the Internal Revenue Service so that you can hire employees. If you plan to have three or more employees, purchase worker's compensation insurance for your employees through the North Carolina Industrial Commission. Notify the North Carolina Department of Revenue and the IRS every time you hire an employee.
-
4
Open a bank account with your business' name. Put all business checks into the business account and pay business expenses out of this account. This helps prove that amounts you claim as business income and expenses on your tax return are legitimate.
-
5
Get a calendar and mark off the 15th of January, April, June and September. You must pay quarterly estimated taxes to North Carolina and the IRS by each of these dates. If you have a sales and use tax license, you also must pay sales and use tax on the 30th of each month that you pay quarterly estimated taxes. Get in the habit of paying these taxes on time to avoid tax problems.
-
1
