North Carolina has passed significant tax reform legislation, with a plan to reduce the corporate income tax rate from 2.5% in 2025 toward 0% by 2030. Despite this favorable trend, entities registered in North Carolina still face annual report obligations, franchise tax, and employer compliance requirements that must be maintained.
Annual Report
North Carolina corporations must file an Annual Report with the Secretary of State by April 15 each year under N.C. Gen. Stat. § 55-16-22. The fee is $25. LLCs file an Annual Report by April 15 under N.C. Gen. Stat. § 57D-2-24, at a fee of $202. The high LLC annual report fee ($202) reflects North Carolina's decision to bundle the annual report filing with a revenue measure. Late filing results in a $200 late fee and eventual administrative dissolution after 60 days.
Corporate Income Tax and Franchise Tax
North Carolina imposes a corporate income tax under N.C. Gen. Stat. § 105-130.3 at 2.5% (2025), scheduled to decrease annually toward 0% by 2030. The corporate income tax return (Form CD-405) is due by the 15th day of the 4th month following the fiscal year end (April 15 for calendar-year filers).
In addition to the income tax, North Carolina imposes a franchise tax under N.C. Gen. Stat. § 105-122 at $1.50 per $1,000 of the largest of: (a) net worth, (b) total actual investment in tangible property in NC, or (c) 55% of total appraised value of property used in NC. The minimum franchise tax is $200. The franchise tax is filed with and due at the same time as the income tax return.
Sales Tax
North Carolina imposes a 4.75% state sales tax plus local option taxes (typically 2–2.75%) under N.C. Gen. Stat. § 105-164.4. Remote sellers with $100,000 or more in North Carolina sales or 200 transactions have economic nexus. Sales tax returns are filed monthly or quarterly depending on volume.
Key Deadlines
- Annual Report (Corporations): April 15. Fee: $25. Late fee: $200.
- Annual Report (LLCs): April 15. Fee: $202. Late fee: $200.
- Corporate Income Tax + Franchise Tax (CD-405): April 15 (calendar year). Minimum franchise tax: $200.
How Compliance Singularity Handles North Carolina
Compliance Singularity files your North Carolina annual report through the Secretary of State's portal before April 15 each year. Corporate income tax and franchise tax obligations are tracked and filed using data from your accounting integration. The system monitors the annual rate changes to the corporate income tax and adjusts estimated tax calculations accordingly.