What North Carolina Corporations Should Be Doing Right Now

The start of the year brings some key deadlines for corporations. Here's what you need to handle between now and mid-March.

1.     W2s and 1099s

You should have prepared and sent W-2s to employees and 1099-NEC forms to contractors or vendors you paid $600 or more last year by January 31. If you use payroll software, it probably handles W-2s automatically, but verify they're going out. For 1099s, check your books to make sure you've caught everyone.

Take a moment to make sure your North Carolina corporation is compliant

2.     Annual Reports

The Corporation must file annual reports with the NC Secretary of State, at the same time, it files its corporate tax return (usually March 15 for S-corporations and April 15 for C-corporations).  Many corporate owners now e-file their taxes and forget to file their annual reports.  Click here for a manual on how to do this. Click here to go right to the annual report site.

If you had changes to your principal place of business, registered agent, registered address or company officials (officers or directors), you should go ahead and file your annual report early to make those changes at the Secretary of State.

Important warning:  Watch out for scam letters that look official but charge inflated fees. File directly through the NC Secretary of State website.

3.     Tax Returns

The Corporation (whether a C corporation or an S corporation) must file a tax return, even if there is only one shareholder.  It may not need to pay any taxes, but all corporations need to file informational returns. 

4.     Annual Meetings of Shareholders (and Directors)

The Corporation must hold annual meetings of shareholders and should have an annual meeting of directors.  Even if you're the only shareholder and director, document these meetings with simple written minutes—date, attendees, and any decisions made.

This documentation matters if someone ever challenges your corporate status.

At an annual Shareholders Meeting, shareholders elect (or re-elect) directors for the coming year, review the corporation's financial performance from the previous year and may vote on any proposals that require shareholder approval—like amending the articles of incorporation or bylaws, major changes to corporate structure, or other significant decisions outlined in your corporate documents.

While not required by statute, most corporations hold an annual meeting of directors to elect officers (president, secretary, treasurer), recommend dividends, approve significant contracts or expenditures, and make operational decisions about running the business. If the company is profitable, the directors may recommend dividends be paid to the shareholders.

5.     Valuation

If your corporate documents (most likely your shareholders' agreement) require annual valuations of the company, this would be a good time to set the current valuation and review the year.

Need help with corporate formation, updated bylaws, new shareholders or other business law matters? Legal Direction protects and supports North Carolina small businesses with practical legal guidance. Contact us to discuss how we can help your business succeed.