starting a business: getting some answers
by diane van helden

1. What structure (or what entity) should I choose for my business?

Whether to operate your business as a sole proprietorship, a partnership, a limited liability company, a corporation or other business entity depends on a number of factors. These include the nature of your business: do you provide services? are you selling a product? is it a business that involves some risk to a customer? and whether you are going into business by yourself or with others, whether you will have employees, and how you intend to capitalize the business.

If you are unfamiliar with the business structures available, you can get a good overview by going online to the North Carolina Cooperative Extension Service’s site at www.ces.ncsu.edu and checking out its “Small Business Primer on Legal Issues”. Each structure is defined and issues such as formation, liability, and taxes are outlined. Information is also available from the Small Business Center at your local community college (in Asheville, A-B Tech).

Before getting started, it would probably be best to confer with a lawyer and/or an accountant. In all likelihood you will need the services of both to set up your business and a conference is a good way to learn what these services will cost.

2. Will I need a business license?

Again, the answer depends on what your business is, since there is no general business license in North Carolina. The easiest way to get an answer is to telephone the N. C. Business License Information Office (BLIO) at 800-228-8443 (NC only) or 919-807-2166. You will be able to have a phone conference during which you will describe your business and receive information about licensing requirements and the state and local entities to contact concerning the licenses. There is also the advantage in calling BLIO that, if you rely on the information given by BLIO and miss a State licensing requirement, you won’t be penalized for having failed to get the license.

You can get more information about BLIO online at the N.C. Secretary of State’s web site at www.secretary.state.nc.us. The Secretary of State’s site also has a “Start Up Checklist” and information on starting a business in North Carolina which you can find by clicking on the Business License Office. It contains helpful information about what is required and where to go for assistance from writing a business plan to taxation.

3. What’s in a name?

The name for your business should be carefully thought out and researched if you will be using a name other than your real name. You won’t want to find out after-the-fact that someone else owns the name or is using it (consider how much the business cards, letterhead, and signs alone will cost you). Begin your search at the Register’s office in the county(ies) where you will be doing business. While you’re there pick up an Assumed Name Certificate form; you’ll need it later once you’ve decided on a name. Check out the Secretary of State’s corporate name index online at www.secretary.state.nc.us (Corporations division-the index also includes limited liability companies, limited partnerships, and limited liability partnerships).

Business names are often protected by registering them as a trademark or service mark at the state or national levels. Telephone The Trademark Division of the N.C. Secretary of State’s Office at 919-807-2162 to find out if the business name is registered as a trademark (this database is not yet available online). The U. S. Patent and Trademark Office does have the marks registered with them online; go to www.uspto.gov for the search (the site is very easy to navigate).

Once you’ve decided on a name, you will need to pull out the Assumed Name Certificate form and record it back at the county Register’s office. If you have decided that a limited liability company, corporation, or other entity which requires filing with the Secretary of State, you will still need to file an Assumed Name Certificate in every county where you do business.

After 25 years of a litigation and business practice in Austin, Texas, Diane Van Helden is enjoying her office practice in Madison County. She and her assistants-two dogs and four cats-enjoy the work from her home-office on Meadow Ridge just outside Mars Hill.