Obtaining a Business License

Business licenses are crucial to start a business, as they allow you legally operate your food business. On top of that, they help build trust and credibility between the law and the business owner, as it shows that you are a legit business that contributes to the local and state revenue. While many licenses are relatively easy to obtain, the process can still be confusing if you don’t know where to begin. Understanding the required steps will help ensure you are fully compliant and ready to operate.

The first step is to determine your business structure. Deciding whether your business will be a sole proprietorship, limited liability company (LLC), or corporation will affect how you are taxed and the extent of your personal liability. Once you've chosen a structure, you’ll need to register your business name. This involves ensuring that your desired name is unique and not already in use, which you can check using the North Carolina Secretary of State Business Registry.

Next, if your business requires it, you must obtain an Employer Identification Number (EIN) from the IRS. This number is used for tax purposes and is necessary if you plan to hire employees or form a partnership or corporation. After receiving your EIN, you’ll need to register your business with the North Carolina Secretary of State by filing the appropriate formation documents based on your business type.

From there, you’ll need to acquire the necessary licenses and permits. North Carolina does not issue a general business license; instead, licenses are issued based on the type of business you plan to operate. At the state level, this means determining which permits apply to your food business, such as health permits or food service establishment licenses. Locally, the requirements can vary. While the City of Durham has eliminated many privilege licenses, specific licenses are still required for certain businesses, especially those involved in alcohol sales. It's important to contact the City of Durham to verify what licenses your particular business will need.

In Durham County, if you plan to sell beer or wine, you must obtain a county business license, which is renewable annually by April 30. To receive this license, you must provide a copy of your North Carolina State Alcoholic Beverage Control (ABC) License. Additionally, before selecting a location for your business, check with the Durham City-County Planning Department to ensure the site complies with local zoning laws.

Lastly, depending on the nature of your business, you may need to register for state taxes, such as sales and use tax, with the North Carolina Department of Revenue. It’s also a good idea to stay informed by regularly consulting the North Carolina Secretary of State’s website for updates on business regulations and licensing requirements.

For more comprehensive guidance and resources, visit nc.gov, the official state website.