Nevertheless, you may want to obtain one anyway for your business. Some banks require one to open a bank account and it can reduce the risk of identity theft. In North Carolina, businesses are required to report taxes and file various employee reports.
If you have employees, you must report and pay employment taxes on a periodic basis. More information related to employment taxes can be obtained by registering with the North Carolina Online Business Registration. It is important to consider doing the following once you have established your sole proprietorship:.
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Talk to a Lawyer. Grow Your Legal Practice. Meet the Editors. To establish a sole proprietorship in North Carolina, here's everything you need to know. There are four simple steps you should take: Choose a business name. This includes performing a complete trust account reconciliation on a monthly basis. You are not required to have a trust or escrow account unless you are holding trust monies. If you choose to operate your firm from your home or any other non-commercial setting, make sure that there are no zoning regulations or restrictive covenants which prohibit you from operating a real estate business from that location.
The Commission has no specifications for the size or shape of signs for a real estate office. For Sale and For Rent signs should clearly indicate the name of the firm so that prospective buyers and tenants will know that the sign and the telephone number on the sign belongs to a real estate broker. If you actively engage in real estate brokerage activities, hold trust monies or have at least one associate, you must declare yourself Broker-In-Charge. You must have at least two years of real estate brokerage experience within the previous five years to be eligible to declare yourself broker-in-charge.
If you have set up your firm for the sole purpose of receiving sales commissions and have no associates or trust monies, then you are not required to declare yourself broker-in-charge. We ask only that you describe the type of firm you are establishing on the application and provide the Commission with a SOSID Secretary of State Identification Number , if required by state law, and have available any organization documents for Commission review.
You should not include the name of a salesperson or unlicensed person in the name of your sole proprietorship. For information concerning privilege licenses, contact the North Carolina Department of Revenue, Commonly Used Terms. Principal broker : a principal of a business entity who holds a broker license on active status and in good standing. When it comes to filing license or permits request, dealing tax issues or even the name of your sole proprietorship you are required to be very vigilant and make sure nothing is overlooked.
You need to protect yourself from identity theft and there is less room for mistake at the business place as your personal and business assets both are at stake. Every business model has some pros and cons.
You need to think carefully before selecting any mode of business and carefully follow the requisites of that particular model. We hope this article helped in getting insight and answered your queries related to sole proprietorship formation.
You can visit our guide to small business models before making a final decision. Hi, Wilson here. Stay with me to see how! Please note: This page may contain affiliate links. If you buy a product or service through such a link we earn a commission at no additional cost to you. Read Review. Visit SwyftFilings. Keeping the common and federal laws of trademark protection in mind, it is wise to avoid a name that is too similar to another registered business. Set up a business bank account Using your DBA name and EIN you should get a business bank account to keep your personal and business finances separate to avoid any confusion.
Obtain general liability insurance Unlike LLC, sole proprietors are personally liable for all business obligations and debts, obtaining general liability insurance may be the only way to protect yourself against unforeseen circumstances. Report and pay taxes Depending upon the particular business activity, you need to be vigilant in paying all the taxes that you are supposed to pay.
Must Known Things Before Getting Sole proprietorship As a Business Model Before starting your business as a sole proprietor, the following are a few important things you must keep in your mind.
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