Company Formation in Canada: Guide for US Entrepreneurs and Expats
Discover how U.S. entrepreneurs can navigate company formation in Canada, from costs and benefits to registration steps, tax rules, and compliance.
Expanding your business to the East Coast? North Carolina might be your next smart move.
With its booming tech hubs, growing logistics corridors, and one of the most entrepreneur-friendly legal frameworks in the Southeast, North Carolina has a lot to offer to growing businesses.
This guide will walk you through each step of the foreign qualification process, including filing, compliance requirements, and how North Carolina compares to other states. The North Carolina Secretary of State, specifically the Business Registration Division, is the filing authority overseeing all foreign entity applications. We'll also discuss the Wise Business account. The global account that can help your company with all things cross-border.
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Under North Carolina law, your company must register if it’s conducting business in the state. Examples include:
You can find more details on the North Carolina Secretary of State's website1.
Before applying, you’ll need a Certificate of Good Standing (also called a Certificate of Existence) from your home jurisdiction. This document confirms your LLC is properly formed and compliant. It’s typically valid for 60–90 days.
To get this certificate, visit the Secretary of State or business division website of your formation state.
Search for your business name using the North Carolina Business Name Search2. If your LLC’s name is already in use or doesn’t meet North Carolina naming requirements, you’ll need to register under a fictitious name.
Fictitious names (also called assumed names or DBAs) must also be filed with the county register of deeds where the business operates.
Your LLC must designate a North Carolina-registered agent to receive legal and state documents. Requirements include:
You can act as your own registered agent if you meet the requirements, or hire a professional registered agent service, which typically costs $100–$300 per year.
To formally register your foreign limited liability company in North Carolina, you must file the Application for Certificate of Authority (Form L-093) with the Business Registration Division of the North Carolina Secretary of State. This form serves as the official foreign registration document and includes key information about your LLC, such as its legal name, home state, principal office address, and details about your appointed North Carolina registered agent.
North Carolina does not require an initial report at the time of foreign registration. However, you’ll need to submit an annual report (see Step 8 below).
North Carolina does not have a centralized business licensing system. Licenses are typically issued by:
Use the NC Department of Commerce5 or your local government website to check requirements.
Examples: childcare centers, food service providers, contractors, and health professionals.
To maintain compliance and fulfill the state law requirements, your foreign LLC must:
Your LLC must stay current with all filings and updates required by the State’s office, including annual reports and registered agent changes.
Once you have established your business with an LLC, you’ll need a business account to manage your US finances. A Wise Business account is easy to open online and comes with no monthly fees. You can convert funds from your home currency to USD with low, transparent fees.
Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in currencies. You can get major currency account details for a one-off fee to receive overseas payments like a local. You can also send money to countries.
Some key features of Wise Business include: |
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Open a Wise Business account online
Pros | Cons |
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Streamlined registration process | The $250 filing fee is higher than in many neighboring states |
No state-level franchise tax on pass-through entities¹ | Required annual reports with a $200 fee |
Access to a strong talent pool and regional business infrastructure | Local licensing varies by city/county |
Favorable legal framework for business entities | Naming restrictions may require fictitious names |
Here are the key obligations every foreign entity must stay on top of:
North Carolina combines legal flexibility with a dynamic business environment. Companies choose the state for its:
Feature | North Carolina | South Carolina | Georgia | Florida |
---|---|---|---|---|
Filing Fee | $250 | $110 | $225 | $125 |
Annual/Biennial Report Fee | $200 | None | $50 | $138.75 |
Income or Franchise Tax | No | No | No | No |
Tax Structure Type | Pass-through | Pass-through | Pass-through | Pass-through |
Registered Agent Required | Yes | Yes | Yes | Yes |
North Carolina has higher initial and ongoing fees compared to nearby states, but it offers a balanced business environment with robust support infrastructure. South Carolina is a cost-effective choice for smaller expansions, especially since it does not require annual report fees. Georgia strikes a middle ground with moderate filing and compliance costs, along with user-friendly online systems. Florida appeals to startups with low entry costs and broad market access, though its higher annual fees may add up over time.
It’s necessary for any business entity planning to operate in North Carolina to register as a foreign LLC. Follow the listed steps to ensure compliance and protect your company’s legal standing. If you’re unsure about any requirements, consult a professional or use a registered agent service that can help you avoid costly mistakes.
No, your business doesn’t need a physical office in the state. However, you must appoint a North Carolina-registered agent with a physical mailing address (not a P.O. box) located in the state to receive legal and official documents.
Online filings through the Secretary of State’s portal are usually processed within 1–2 business days. Paper applications may take longer, depending on volume and mail delivery times.
No. If your business is actively conducting business in the state without proper registration, you may face fines, lose access to state courts, and risk being barred from enforcing contracts in North Carolina.
If you fail to file the annual report by the April 15 deadline, you risk facing late fees, the loss of good standing, and ultimately, administrative dissolution of your foreign LLC. Reinstatement may require additional paperwork and fees.
Sources:
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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