Before you begin

Confirm you need to register

Before completing a sales and use tax registration application in the state of North Carolina, confirm that your business meets the requirements to register for a Certificate of Registration (also known as a seller’s permit).

Who should register?

• Retailers located in the state of North Carolina who engage in sales of tangible goods, services, or marketplace-facilitated sales.
  
• Remote sellers (i.e., businesses located outside of North Carolina making sales with final destination into North Carolina) that meet either the sales or transaction number thresholds listed below.
  
  • Threshold: $100,000 in gross sales or 200 separate transactions
    
  • Period: Previous or current year
    

Gather information

Next, visit the NCDOR registration checklist to make sure you have all required information readily available, as this will help simplify the online application process.

Start the registration process

1. Navigate to the North Carolina Department of Revenue (NCDOR) online business registration website and select “Register Your Business Electronically” midway down the page.
   
2. The NCDOR will direct you to an informational page noting the registered tax types supported by the electronic registration.
   
   • Once you have read through the information, select “Next.”
     
   • Note: If a tax type you require is listed under the “Important note” section, select the appropriate form and follow the instruction provided for submission rather than continuing the current electronic registration process.
     
3. From the dropdown menu provided, select the ownership type of the business for which you are registering (the options are “sole proprietorship,” “corporation,” “limited liability company (LLC),” “partnership,” “limited liability partnership (LLP),” and “fiduciary”).
   
4. Additional fields will appear prompting information to be entered regarding your business based on the ownership type selected.
   
   • Complete the required fields and select “Next.”
     
5. For businesses that selected any ownership types other than sole proprietorship, the next application page will prompt you to “Add responsible persons.”
   
   • Fill out the required fields with the appropriate information for your business. Select “Add” at the bottom of the page. Continue this process until all responsible persons have been added to the list at the bottom of the page.
     
   • Select “Next.”
     
   • Note: North Carolina does not require partnerships and LLCs to provide responsible persons equaling 100% of ownership. Only one responsible person is needed to submit the application. This person may also serve as the contact person once the application is submitted and the account has been created with the state.
     
6. Next, you will be directed to enter the business contact information and mailing address.
   
   • Use the physical business address to determine whether or not the business is located in North Carolina.
     
   • Select “Next.”
     
7. Select the box for “Sales and use tax and other taxes and service charge.”
   
   • Select “Next.”
     
8. Provide answers to the sales and use tax questionnaire prompted on the next application webpage.
   
   • Enter your collection start date for tax on sales made into North Carolina in the first field. This is the date the state will expect you to start collecting sales tax from your customers in North Carolina. We recommend speaking with a CPA if you are unsure of which date to use for your business.
     
   • Determine whether your sales or gross receipts will be retail, wholesale, or both.
     
   • Select the appropriate accounting method for your business (cash or accrual).
     
   • Choose a primary and secondary category that best describe your business activity.
     
   • Enter your expected owed sales tax each month: This number is an estimation according to the state and will determine the filing frequency for your business. If previous years’ gross sales are available, multiply this number by 4.75% (the average of state and local tax rates combined). Divide the result by 12 to calculate the expected monthly tax owed. Compare the expected monthly tax owed amount with the following classifications to determine the filing frequency: less than $100 per month = quarterly frequency; $100 to $19,999 per month = monthly frequency; $20,000 or more per month = monthly prepayment frequency.
     
   • Note: The state of North Carolina audits this information annually and will send a notice to the business by mail if a frequency change has been made by the state on behalf of the business. North Carolina does not support an annual frequency. More information regarding filing frequencies in this state can be found here.
     
   • Review and answer the remaining questions specific to your business.
     
   • Select “Next.”
     
9. Review the application summary titled “Ownership information.”
   
   • If all information is correct, check the “I certify” box at the bottom of the page under the “Submit information” section.
     
   • Complete the applicant name, phone, title, and email information fields using any responsible person previously provided on the application.
     
   • Select “Submit.”
     
10. If the application submission is successful, the NCDOR will provide you with an application status of “submitted and accepted,” along with a confirmation number.
    
    • Print this confirmation page for your records, as it contains the North Carolina account ID associated with the sales and use tax account (this account ID will be used for online filing and payments).
      
    • Written acknowledgement of registration application acceptance will be mailed to the business address within 10 business days of application submission, including a Certificate of Registration and general information regarding filing sales and use tax returns.
      
    • On occasion, an application submission will require further review by the state. For these cases, a tracking number will be provided on the confirmation page rather than an account ID.
      
    • Print the confirmation page with the tracking number associated with the submission.
      
    • Follow up with the NCDOR by phone after five business days for application status by providing the tracking number to the state.
      

What’s next?

Enable sales tax calculations for North Carolina on Stripe Tax

Once you have received your sales tax permit from the state, the next step is to enable sales tax calculations in Stripe Tax for North Carolina, as the state will expect you to start collecting sales tax from your customers in North Carolina based on the collection start date you used on your sales tax registration form.

You can read these instructions on how to add your North Carolina registration to your Stripe Dashboard. For more information on enabling Stripe Tax, you can find full setup instructions.

Sales and use tax online filing and payments

Next, you’ll want to prepare to file your first sales tax return in North Carolina based on the filing frequency the state assigned you.

If you’d prefer to have a trusted partner file these returns for you, we recommend using TaxJar’s AutoFile solution. Click here to sign up and see more information.