North Carolina Corporation

For North Carolina Corporation prices and State fees, please visit the costs page for forming a Corporation in North Carolina.

North Carolina corporation and corporation are general, for profit, corporations, refered to as "C Corporations", referring to Chapter "C" of the IRS tax code. A corporation is a separate legal entity and is, essentially, treated as a person, legally. The entity can own property, open bank accounts and credit lines and, under its own name, conduct business. The corporation is responsible for its own debts and actions, therefore (if the company is operated correctly) in the event of a lawsuit that forces the business into bankruptcy, the owners of the corporation are not liable for the corporate debt.

North Carolina corporation must observe some operating formalities and maintain its separate legal status. Holding shareholder meetings, at least annually, is one of these formalities. At these meetings the corporation shareholders discuss and decide on critical business matters and approve actions taken by the corporation for the operating period. These meetings should be recorded in the form of meeting minutes, this is a legal record that shows the shareholders are approving actions and the officers are indemnified by the stockholder approval of the business actions.

A corporation is a common form of business organization that is chartered by a state government. It is granted many legal rights as an entity separate from its owners. The corporation is distinguished by limiting the liability of its owners, issuing shares of stock that can be transferred from one individual to another, and its ability to have perpetual existence. Because a corporation is separate from its owners it can protect them from being personally liable when the company is sued (known as limited liability). In addition there are tax benefits available to incorporated businesses that are not available to unincorporated businesses.