What North Carolina LLCs Should Be Doing Now
Last week we talked about how to keep your corporation in good standing. This week we focus on the LLC. While one benefit of an LLC is less formality, there are still some actions required to protect the owner’s limited liability in a North Carolina LLC.
You should have prepared and sent W-2s to employees and 1099s to contractors or vendors by January 31st.
The LLC must file annual reports with the NC Secretary of State when it files its company tax return. For multi-member LLCs, that is generally March 15. For single-member LLCs, that is generally April 15. Click here to go right to the annual report site. There are many, many scams out there asking for large sums to file your annual reports. These are so common that the Secretary of State webpage now includes a section on Misleading Mailings here. The actual filing fee is $200.00.
A single-member LLC does not have to file a tax return for the LLC, but multi-member LLCs do have that requirement to file an informational tax return.. All income and losses for a single-member LLC flow through to the personal income tax return of the owner on Schedule C. LLCs with two or more members must file a partnership tax return, but will not pay any income tax at the company level. For more information, click here or contact a CPA.
If your operating agreement requires annual meetings of members or managers, be sure to hold them. There is no independent requirement under NC Law. This is a good time if you need to set annual valuations for buy-out reasons.
Just a reminder that the Corporate Transparency Act requires most LLCs to file Beneficial Ownership Interest Reports, but currently penalties for failure to file are not enforceable.
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