IPCPR Legislative | Operating Your Business in North Carolina

Operating Your Business in North Carolina

northcarolina

Operating Your Business in North Carolina

An applicant for a license must meet the following general requirements:

  • If the applicant is a corporation, the applicant must either be incorporated in North Carolina or be authorized to transact business in North Carolina.
  • If the applicant for a license is a limited liability company, the applicant must either be organized in North Carolina or be authorized to transact business in North Carolina.
  • If the applicant for a license is a limited partnership, the applicant must either be formed in North Carolina or be authorized to transact business in North Carolina.
  • If the applicant for a license is an individual or a general partnership, the applicant must designate an agent for service of process and give the agent’s name and address.

 

N.C. Gen. Stat. § 105-113.4A

 

Every person engaged in business as a wholesale merchant or retailer in North Carolina must obtain a Certificate of Registration by filing a Business Registration Application for Income Tax Withholding, Sales and Use Tax, and Machinery and Equipment Tax (Form NC-BR).

 

A wholesale dealer must then obtain a continuing tobacco products license for each place of business by filing an Application for Cigarette Distributor’s License and Tobacco Products (Other Than Cigarettes) (Form B-A-2), along with the Appointment of Secretary of State for Service of Process (Form B-A-28), a Tax Bond for Tobacco Products Other Than Cigarettes (Form B-A-29) with a bond amount of $2,500, and an application fee of $25. A retail dealer must also obtain a continuing tobacco products license for each place of business by filing Form B-A-2, along with Form B-A-28, Form B-A-29 with a bond amount of $2,500, and an application fee of $10. These licenses do not require renewal.

 

N.C. Gen. Stat. § 105-113.36

 

Wholesale and retail dealers liable for the excise tax on tobacco products other than cigarettes must file the Monthly Other Tobacco Products Excise Tax Return (Form B-A-101) and the Tobacco Report Tax-Paid Products of Nonparticipating Manufacturers (Form B-A-7) within 20 days after the end of each month, even if no tax is due.

 

N.C. Gen. Stat. § 105-113.37

 

Cigar bars are exempt from the ban on smoking if smoke from the cigar bar does not migrate into an enclosed area where smoking is prohibited. A cigar bar that begins operation after July 1, 2009, may only allow smoking if it is located in a freestanding structure occupied solely by the cigar bar and smoke from the cigar bar does not migrate into an enclosed area where smoking is prohibited. A cigar bar must satisfactorily file an Application/Affidavit for Cigar Bar Exemption with the Department of Health on a quarterly basis, reporting the revenue generated from the sale of alcoholic beverages and cigars as a percentage of quarterly gross revenue. To qualify as a cigar bar, an establishment must:

  • Generate 60% or more of its quarterly gross revenue from the sale of alcoholic beverages and 25% or more of its quarterly gross revenue from the sale of cigars;
  • Have a humidor on the premises
  • Not allow individuals under the age of 21 to enter

 

N.C. Gen. Stat. § 130A-496

 

Localities may require additional business licenses.

Form NC-BR: Business Registration Application for Income Tax Withholding, Sales and Use Tax, and Machinery and Equipment Tax
http://www.dornc.com/downloads/fillin/NCBR_webfill.pdf

 

Tobacco Products Tax Forms Database
http://www.dor.state.nc.us/downloads/tobacco.html

 

Form B-A-2: Application for Cigarette Distributor’s License and Tobacco Products (Other Than Cigarettes)
http://www.dor.state.nc.us/downloads/ba2.pdf

 

Form B-A-28: Appointment of Secretary of State for Service of Process
http://www.dor.state.nc.us/downloads/ba28.pdf

 

Form B-A-29: Tax Bond for Tobacco Products Other Than Cigarettes
http://www.dor.state.nc.us/downloads/ba29.pdf

 

Form B-A-101: Monthly Other Tobacco Products Excise Tax Return
http://www.dor.state.nc.us/downloads/ba101.pdf

 

Form B-A-7: Tobacco Report Tax-Paid Products of Nonparticipating Manufacturers
http://www.dor.state.nc.us/downloads/ba7.pdf

 

Application/Affidavit for Registration of Exempt Cigar Bar (Beginning operation after July 1, 2009)
http://tobaccopreventionandcontrol.ncdhhs.gov/smokefreenc/docs/FinalCigarBarExemptionAffidavit(After-July-1-2009).pdf

 

Application/Affidavit for Registration of Exempt Cigar Bar (Beginning operation before July 1, 2009)
http://tobaccopreventionandcontrol.ncdhhs.gov/smokefreenc/docs/FinalCigarBarExemptionAffidavit(Prior-to-July-1-2009).pdf

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