Starting a new business can be exhilarating and feel full of promise, but a good start is contingent on getting all your ducks in a row. When you create a sole proprietorship or partnership and register with your county register of deeds, you will not receive an identification number from the North Carolina Secretary of State. Creating a company with limited liability such as a corporation, limited-liability company or limited-liability partnership will require registration with the North Carolina Secretary of State. Companies of this type that operate in North Carolina but were formed in other states will also need to register with the Secretary of State's Office. Registering with this office will create a North Carolina Secretary of State Identification Number.
As you pursue contracts with different state agencies, you may need to include the Secretary of State ID Number on your registration with each agency of interest. Agencies that request this number include members of the University of North Carolina System, county governments, city governments and others.
These larger government contracts could be especially profitable for your business. For instance, contractors can bid on and win large construction contracts that pay much more than building individual homes or doing small renovation projects for home owners.
Most banks want to see your company's EIN number and your North Carolina Secretary of State ID Number in order to open an account under your business name. This is because the bank wants proof that you are a legitimate organization before offering you services targeted only at that audience. In addition, since the bank account must be opened in your business' name and not your personal name, the bank needs to know who is liable should issues occur with the account.
You may decide to shut down and dissolve your company. Also, your company may be dissolved if you fall out of compliance with your duties to keep your records current through filing annual report with the North Carolina Secretary of State or paying taxes with the North Carolina Department of Revenue. Your Secretary of State ID number will remain archived with the company's registration on record with the state.