ECONOMIC DEVELOPMENT

Business Start-Up Guide

Getting involved with a new business, especially if you have no previous experience, can bring you face to face with a whole new world of complex problems. But it doesn't have to be overwhelming if you are prepared. Starting a business will dramatically change your life, and as with any such activity, you should take the time to investigate what actions will be necessary for you to legally establish your business. It is best to start your business on the right track from its inception.

I. Local Requirements

1.The first step in establishing a business within the Town of Cary is to obtain a Zoning Verification Letter from the Cary City-County Planning Department. This is readily accomplished once you have determined where you will locate your business. City-County Planning Dept. and deliver it in person, by mail, or by fax to the Planning Dept.

Town of Cary Planning & Zoning Division

PO Box 8005

Cary, NC 27512-8005

(919) 469-4082 Fax: (919) 469-4935

If your location is appropriate, you will receive your zoning verification letter.

2.Once you have your zoning compliance letter, you then need to contact the Finance Offices of the Town to acquire Business Privilege Licenses.

Town of Cary Finance Department

PO Box 8005

Cary, NC 27512-8005

(919) 469-4308

(919) 469-4306

The fee for your business privilege license is determined by a fee schedule available for review at the town collection office. Please call these agencies to determine your company's license requirement.

II. State Requirements

1.A State Privilege License and License Tax are applicable to most businesses in North Carolina. Licenses are issued annually and should be applied for before the commencement of any business activity. Contact the NC Dept. of Revenue's License and Excise Tax Division for information on Privilege Licenses.

North Carolina Department of Revenue

License and Excise Tax Division

PO Box 25000

Raleigh, NC 27640

(919) 733-3673

2.If you are planning to incorporate your business in North Carolina you must file Articles of Incorporation with the Department of the Secretary of State.

Dept. of the Secretary of State

Corporations Division

300 North Salisbury Street

Raleigh, NC 27611

(919) 733-4201

3.All retail sales in North Carolina are subject to sales tax unless specifically exempt by statute. Wholesale transactions with a registered merchant for the purpose of resale are not subject to this tax. For information regarding this state assessment or to obtain a Wholesale Merchant's Certificate of Sale, please contact the NC Dept. of Revenue,Sales and Use Division.

North Carolina Department of Revenue

Sales and Use Division

501 Wilmington Street

Raleigh, NC 27604

(919) 733-3661

4.Certain taxes must be withheld from an employee's wages and submitted to the government. If you will be paying wages to one or more employees, you will need to complete an Application for Withholding Identification Number for your business with the North Carolina Department of Revenue.

North Carolina Department of Revenue

PO Box 25000

Raleigh, NC 27640

(919) 733-3991 FAX (919) 733-0023

5.Other State Requirements and Tax Information:

A. Incorporated businesses must file annual franchise and income tax returns with the state.

North Carolina Department of Revenue

Corporate Income and Franchise Tax Division

501 Wilmington Street

Raleigh, NC 27604

(919) 733-3166

B. Any company employing one or more employees is required to provide unemployment insurance coverage for its workers. Employer contributions to the Unemployment Insurance Fund are administered by the NC Economic Security Commission. For more information, contact their Durham office.

Employment Security Commission of N.C.

1105 Briggs Avenue

Durham, NC 27701

(919) 560-6880

C. If your company will be employing three or more employees, you will be required to provide workers compensation coverage. For more information regarding Workers Comp., contact the NC Industrial Commission.

North Carolina Industrial Commission

430 N. Salisbury St.

Raleigh, NC 27610

(919) 733-4820

D. To ensure the health and safety of workers employed in North Carolina, the Department of Labor administers the Occupational Safety and Health Act of NC. The department offers free services to ensure that your business is in compliance with OSHA standards.

North Carolina Department of Labor

Occupational Safety and Health Division

4 West Edenton Street

Raleigh, NC 27601

(919) 662-4575

III. Federal Requirements

1.The "Small Business Kit" is essential for navigating federal regulations if you have employees. Call the Internal Revenue Service at (800) 829-3676 and they will mail this kit to you with all the information you need, including Forms 940, 941, SS-4, W-2's, W-4's, the "Tax Guide for Small Business," Circular E, and other federal necessities for starting a business

2.As mentioned in the State Requirements section, if you have employees, it is necessary to complete the SS-4 Form, Application for Employer Identification Number in order to obtain a federal withholding I.D. tax number.

3.Please contact the Internal Revenue Service's local Triangle office in regard to all technical questions regarding federal taxation issues. Additionally, the Chamber encourages you to inquire about their "Small Business Tax Workshops" held periodically in the Triangle.

Internal Revenue Service (800) 424-1040

IV. Other Organizations to Assist You:

1.CARY CHAMBER OF COMMERCE

Please call or stop by the Chamber of Commerce in downtown Cary for more information on starting and growing your successful business. Becoming a member of the Chamber of Commerce can be an important part of an effective strategy for achieving many of your business goals. Information on membership is available at the Chamber office, or call us and we will mail it to you.

Cary Chamber of Commerce

307 N. Academy Street

Cary, NC 27513

(919) 467-1016

(919) 469-2375

2.(SCORE) Service Corps Of Retired Executives represents a free service for businesspersons who need assistance in any of the facets of running a business.

SCORE

PO Box 406

Raleigh, NC 27602

(919) 856-4739

3. Wake Tech Small Business Center offers counseling and business seminars for start-ups.

Small Business Center

Wake Technical Community College

9101 Fayetteville Road

Raleigh, NC 27603-5696

(919) 715-3440

4.Providing guidance to start-up and emerging growth-oriented companies in the Triangle through seminars, workshops and other activities is CED, the Council for Entrepreneurial Development.

Council for Entrepreneurial Development

PO Box 13353

RTP, NC 27709

(919) 544-4642FAX (919) 544-2341