Starting a business in North Carolina is not difficult in terms of required administration and compliance with state regulatory requirements. NC prides itself on being as business friendly as possible and light administrative burdens for startups is a good example of this public policy. You only need to file some forms with the North Carolina Secretary of State. After that, you can start running your business immediately.
What Makes North Carolina so Good for Young Business?
Forbes ranked North Carolina the top spot for business three years in a row. The state was in the top five overall states list for 14 years from 2006.
In its article, Forbes explained that North Carolina ranks highly thanks to its low business costs, institutions of higher learning, high supply of labor, and regulatory environment. Starting an LLC in North Carolina is much easier than in many states. There is a high supply of skilled and educated workers from 53 universities and colleges.
Here are several benefits of starting your business in North Carolina.
1. A Healthy Housing Market
The housing market in North Carolina is attractive to many business owners. In 2018, the state managed to attract about $2.5 billion in venture capital. It also attracted droves of skilled and experienced business owners. In that year, the home process increased by about seven percent. However, the cost of housing is still attractive.
2. Solid Schools, Particularly Higher Ed
The schools in North Carolina are great. Entrepreneurs have access to a skilled and trained workforce from both private and public colleges in the state. Duke, for example, is a top research university in the state. It is ranked as one of the top five universities in the United States. Other schools that produce skilled and competent workers include the University of North Carolina Chapel Hill, Elon University, and Appalachian State University.
3. Highly Competitive Local Labor Markets
North Carolina has a very competitive labor market. Because of the low unemployment rates, there is a high demand for skilled workers, Businesses have no choice but to gain advantage over the competitors. The competitive labor market has helped improve workplace perks and employee compensation. With the right perks, it is easy for business people to attract and maintain top talent. Since many businesses have implemented systems to fight unfairness discrimination, and workplace harassment, the employees are generally happy and productive.
4. Relatively Attractive Taxation
In North Carolina, the taxes are generally low. The Tax Foundation ranked the state 12th for business taxes. The highest corporate income tax rate is 2.5 percent. It is much lower than the rate in most states. Even though business taxes in North Carolina may be slightly higher, they are still lower than most of the neighboring states.
North Carolina’s taxation is generally relaxed as the state seems eager to promote both small and large businesses. Even though there are disparities in various parts of the state, there are creative, economic development incentives all through.
5. Low Cost of Living and Business
The cost of living and running a business in North Carolina is low. The costs of labor, housing, transport, and electricity are lower than other states. Even though the labor pool has been tightening over the last few years, they are still manageable.
In conclusion, North Carolina has a lot to offer entrepreneurs who have the flexibility to consider starting a new business in multiple geographies. The costs of living and labor are low, the taxation is relatively attractive, and labor markets are competitive enough to help keep organizational costs contained.