What North Carolina LLCs Should Be Doing Right Now

One benefit of an LLC is less formality than a corporation, but you still have some required actions to protect your limited liability.

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

1.       W-2s and 1099s

You should have 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 went out. For 1099s, check your books to make sure you caught everyone.

2.       Annual Reports

LLCs must file annual reports with the NC Secretary of State at the same time they file their tax returns. For multi-member LLCs taxed as partnerships, that's generally March 15. Single-member LLCs don't file a separate LLC return—you just file Schedule C with your personal tax return by April 15.

The annual report updates your registered agent, principal office address, and member/manager information. You can file it online through the Secretary of State's website.

If you had changes to your principal office, registered agent, or managers/members, file your annual report early to update those changes at the Secretary of State.

Important warning: Watch out for scam letters that look official but charge inflated fees. The NC Attorney General warns about these regularly. File directly through the Secretary of State's website.

3.       Tax Returns

Single-member LLCs don't file a separate tax return for the LLC. All income and losses flow through to your personal tax return on Schedule C, due April 15.

Multi-member LLCs file a partnership tax return (Form 1065) by March 15. The LLC itself doesn't pay income tax—profits and losses pass through to the members, who report their share on their personal returns using Schedule K-1.

Talk to your CPA about your specific situation.

4. Member and Manager Meetings

Unlike corporations, North Carolina law doesn't require LLCs to hold annual meetings. However, if your operating agreement requires annual meetings of members or managers, you need to hold them and document them with simple written minutes.

Even if not required, this is a good time to meet and review the previous year's performance, discuss plans for the coming year,

and handle any significant decisions.

5. Valuations

If your operating agreement requires annual company valuations (often tied to buy-sell provisions), now is the time to complete them. Even if not required, knowing your LLC's current value helps with business planning and ensures your buy-sell agreement reflects current reality.

Need help with LLC formation, operating agreements, 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.