How To Get A Sales Tax Certificate In North Carolina (Mar. 2026)

North Carolina is a popular state for forming an LLC due to its strong economy, business-friendly climate, low corporate tax rate, skilled workforce, and efficient registration process.

After getting your LLC officially formed by filing Articles of Organization, you must register for Sales and Use Tax with the Department of Revenue if your business sells taxable services or goods. To do this, you can apply online through the North Carolina Department of Revenue (NCDOR) website or submit a paper application by mail.

In this article, I will explain how to obtain a Sales Tax Certificate in North Carolina, who must register, how to apply, and the risks of operating without authorization.

An Overview Of The Sales Tax Certificate In North Carolina

Sales and Use Tax Certificate of Registration, issued by the NCDOR, is an authorization to collect and remit Sales and Use Tax on taxable goods or services.

In addition to engaging in taxable activities, your LLC’s registration requirement depends on whether it has nexus in North Carolina. A brief overview of nexus standards is provided in a table below. I will discuss this in more detail further in the article.

You may apply for a Sales and Use Tax Certificate of Registration only after your LLC has been approved by the state and you have obtained an EIN from the Internal Revenue Service.

A separate certificate is required for each business location, and each certificate must be displayed conspicuously at the place of business.

1. Tax Rate

Sales are subject to a 4.75% state sales tax + A local sales tax rate of 2% or 2.25% (Depending on your operating location). This is taxed as an additional 0.50% transit tax in some counties.

2. Filing Methods

You can get your North Carolina Sales Tax Certificate by two methods, both of which cost $0 to file:

1. Online: Use the NCDOR online business registration portal. You should receive your account number instantly. Your Certificate of Registration will be mailed within 10 business days.
2. By mail: Complete Form NC-BR and mail it to the NCDOR. Your application will take up to 4 weeks to process.

How To Get The North Carolina Sales And Use Tax Certificate Of Registration Online

Before processing your application, have all the required information based on the DOR Business Registration Checklist.

I’ve discussed how to complete each one in more detail below.

1. Read The Department’s Pre-Filing Notification

Navigate to the NCDOR online business registration portal to begin your application.

First, ensure you carefully read the department guidance before beginning your filing.

2. Select Your LLC Ownership

Next, find your LLC ownership option in the dropdown box. This defines your business’s ownership.

3. Enter Your LLC’s Basic Information

Fill in the boxes regarding your LLC’s basic information. This must include your EIN in the applicable box.

Then, select the state where you formed your LLC in the provided dropdown box.

You must enter your LLC’s North Carolina Secretary of State Number here, which you can find on your approved Articles of Organization.

4. Check Your Desired LLC Name

Verify your LLC’s registered name after entering its basic information.

5. Add A Responsible Person

Enter the main information of the authorized persons completing your filing. This may be a president, treasurer, chief financial officer, another corporate officer, or LLC manager.

Complete the asterisked boxes regarding your authorized individual’s name and address.

Then, click Add to complete your input information. Check your information in the table under the add button.

If you need to, you can press Clear or Edit to make changes to your responsible person’s information.

6. Enter Your LLC’s Business Information

After step 5, fill in the required fields regarding your LLC’s business information.

While your mailing address can be outside of North Carolina or the U.S., you need to confirm this using the “Yes/No” boxes at the end of your questionnaire.

You can use a P.O. box to complete this section.

7. Add Your Operating Locations

Enter your LLC’s North Carolina operating location in the next step.

a. Enter The Location Information

Fill in the blank boxes regarding your LLC’s location. You can use a P.O. box for this section.

b. Check Your Input Information

Press “Add” to insert your location information.

Next, check your information in the table carefully.

8. Check The Application Service Box

Select the Sales & Use Tax and Other Taxes & Service Charge option to proceed with your application.

9. Answer The Sales And Use Tax Application Questions

After checking the box, answer the questionnaire regarding your LLC’s Sales and Use Tax application.

a. Start Date

Enter the date (MM/DD/YYYY) when your LLC will begin selling or purchasing items or services that are subject to North Carolina’s taxes and services.

You must file your tax returns using the month or calendar quarter that you select, even if you don’t owe tax.

b. Sales Type

Next, state if your sales or gross receipts will be wholesale, retail, or both.

If you sell, lease, or rent items directly to consumers or users for purposes other than resale, subrent, or sublease, you must select Retail.

If you sell exclusively to manufacturers, dealers, registered jobbers, or registered wholesale or retail merchants for resale only, you must select Wholesale.

Select Both Retail & Wholesale if you sell, lease, or rent items to both end users and resellers.

c. Accounting Method

Choose the accounting method that your business will use for reporting Sales Tax.

Choose Cash Basis if you record income and expenses only when payment is received or made. This is selected by most retailers.

Choose Accrual Basis if your LLC records income when it is earned and expenses when they are incurred, regardless of when payment is received. This method is required if your LLC sells electricity, telecommunications, or piped natural gas.

d. Business Activity

Choose the group best describing your business from the available options. These include apparel, automotive, food, furniture, general merchandise, lumber and building material, or other types of businesses.

For this section, choose the subgroup that matches your business activity. Select an Other… category if no option applies. As this list is exhaustive, you should carefully review your options to ensure your business is classified correctly.

e. Expected Monthly Sales Tax

Next, choose the option that estimates how much Sales Tax you expect to owe each month. Your choice for this determines how often you need to file your Sales and Use Tax returns.

• You must file quarterly returns if you expect to owe less than $100 per month. These are due by the last day of April, July, October, and January.
• You must file monthly returns if you expect to owe between $100 and $20,000 per month. These are due by the 20th day of the following month.
• You must file monthly returns with required prepayments if you expect to owe $20,000 or more per month. All filings and payments must be made electronically.

f. Seasonal Operation

Select the months when sales or purchases occur if your business operates seasonally. You only need to file returns for the selected months in this case.

Leave this section blank if your business is NOT seasonal.

g. Application For Use Tax Only

If your LLC does NOT make taxable retail sales and is only registering to remit Use Tax on taxable purchases for storage, use, and/or consumption in the state, and Sales Tax has NOT been paid, select Yes. Once finished, your Sales and Use Tax account will be created so you can report the Use Tax.

If this does NOT apply to your business, select No.

h. Utilities And Services

Answer the questions regarding whether your LLC sells telecommunication services, electricity, satellite services, or other video programming services. Choose the option that most accurately reflects your business activities.

10. Review Your Filing Information

In this step, review your input information to check for spelling errors and mistakes. You can press Click To Edit if you need to return to the previous steps to edit information.

11. Enter Your Submission Information

Then, enter your information in the asterisked boxes and certify your authorization for filing.

12. Receive Your Account Number

You will receive your Account Number instantly once you’ve entered your application information. Then, your filing will be processed within 10 business days, after which the NCDOR will issue your Sales and Use Certificate of Registration.

How To File The Application By Mail

If you prefer to apply by mail, you can complete the Sales Tax Certificate in North Carolina form (Form NC-BR) and mail it to the NCDOR at this address: PO Box 25000, Raleigh, North Carolina 27640-0640.

The form has four sections, but section 2 (Income Tax Withholding Number) is not required, so you only need to complete the following sections:

• Section I: Identifying information.
• Section III: Registration for a Certificate of Registration.
• Section IV: Sign and Submit the Application.

Remember that you need to disclose all locations in your registration filing if your LLC operates at more than one business location.

1. Section I: Identifying Information

Complete this section using black or blue ink. Then, mail your completed form to the Department.

a. Line 1: EIN

State your Federal Employer Identification Number (FEIN).

b. Line 2: Type Of Ownership

Provide your LLC’s basic information in line 2.

b1. Selecting Your Ownership Type

Check “LLC” to indicate that you’re an LLC.

b2. Provide Your LLC’s State ID

Enter your LLC’s North Carolina Identity Number, as established in North Carolina.

c. Line 3: Legal Business Name

Provide your LLC’s legal name in this section. It must be exactly as it appears on your Articles of Organization filed with the North Carolina Secretary of State.

If you’re an out-of-state LLC, you can use the legal name shown in your Certificate of Authority issued by the Secretary of State.

d. Line 4: DBA Name

Enter your fictitious name in line 4 if you have one. You can skip this line if not.

e. Line 5: Daytime Business Phone

Fill in line 5 with your LLC’s daytime phone number.

f. Line 6: Fax Phone

This section is optional. If you don’t have a fax phone, skip it.

g. Line 7: Email Address

In line 7, enter your LLC’s business email.

h. Line 8: Business Location In North Carolina

Next, enter the required information regarding your LLC’s business location in the state. You can NOT use a P.O. box for this section.

You’re also NOT allowed to use an individual owner’s or representative’s home address.

i. Line 9: Business Location Within Town/City Limits

For line 9, state if your LLC’s business is located within city or town limits.

j. Line 10: Number Of Locations In North Carolina

Indicate the number of LLC business locations in the state. You must enclose a list of your business locations with this form if your LLC has more than one operating location in North Carolina.

k. Line 11: Mailing Address

Provide your LLC’s mailing address in Line 11. You can NOT use a P.O. box for this section.

l. Line 12: List Of Responsible Persons

Finally, fill out the table with the information of the persons responsible for executing your application.

2. Section II: Withholding Tax Section

You can skip this section.

3. Section III: Sales & Use Tax And Other Taxes Section

Answer the Section III questions to apply for your Sales and Use Tax Certificate of Registration, your User or Consumers Use Tax Registration, or any other applicable taxes and/or service charges.

4. Section IV: Signature

In the last section, sign and date your application. This must be signed by an authorized individual, such as your LLC owner, partner, or corporate officer.

Sales And Use Tax Certificate Of Registration Requirements In North Carolina

The state has specific rules for issuing and displaying Sales and Use Tax Certificates of Registration, which are explained in the sections below.

1. Display Rule

Under GS § 105-164.29.(b), you must display a copy of your certificate at each operating location. The certificate is issued only to your business entity and cannot be transferred to another individual or business.

2. Separate License For Each Business Location

Under GS § 105-164.29.(a), LLCs must obtain a separate certificate for each business location, and the registration application must be signed by an authorized member, manager, or company official.

Who Must Obtain The North Carolina Sales And Use Tax Certificate Of Registration

You must register with the NCDOR to obtain a Sales and Use Tax Certificate of Registration if your LLC engages in taxable activities in the state. This applies to the following business activities:

• Provide taxable services.
• Sell tangible personal property.
• Sell certain digital products.
• Charge admission.
• Provide accommodation.
• Operate at specialty events.
• Make marketplace-facilitated sales.
• Sell taxable service contracts.

If you buy or sell taxable goods, services, or digital products without paying North Carolina sales tax, including purchases from out-of-state vendors, you must pay Use Tax. Note that LLCs registered for sales tax are automatically registered to remit use tax as well.

To fully understand if your LLC needs to collect and remit Sales Tax in the state, you must first learn about nexus. This is the connection level that your LLC has with the state. Sales Tax is established in two main ways by the state:

1. Physical Nexus.
2. Economic Nexus.

1. Physical Nexus

Physical nexus exists when an LLC has a tangible presence in North Carolina, and LLCs with physical nexus are required to register and obtain a Sales and Use Tax Certificate of Registration before engaging in taxable activities in the state.

Physical nexus is established if a business does the following:

• Rents or leases taxable property.
• Provides taxable services.
• Sells tangible personal property at retail.
• Sells certain digital products.
• Operates a dry cleaner or similar business.
• Provides accommodation.
• Sells at specialty markets or events.
• Sells taxable service contracts.
• Makes marketplace-facilitated sales.
• Charges admission to entertainment activities.

2. Economic Nexus

You may still need to collect and remit Sales Tax even if your business has no physical presence in the state.

Remote sellers with more than $100,000 in gross sales sourced in the state during the current or previous calendar year must register with the Department of Revenue under the state’s economic nexus rules.

Furthermore, wholesale merchants must also register before conducting business in the state. If they do NOT make a taxable retail sale or purchase, they may register as “wholesale only,” which means Sales and Use Tax returns are not required.

Cost Of The North Carolina Sales And Use Tax Certificate Of Registration

You do NOT need to pay for your North Carolina Sales and Use Tax Certificate of Registration, regardless of the number of state business locations.

Furthermore, the Sales and Use Tax Certificate of Registration does NOT need to be renewed. However, under GS § 105-164.29.(d), the NCDOR may revoke your certificate if you fail to meet your Sales and Use Tax obligations.

When Can I Apply For The North Carolina Sales And Use Tax Certificate Of Registration?

After obtaining your Articles of Organization and EIN, you must register for a Sales and Use Tax Certificate of Registration if you sell tangible personal property that will be used, stored, or consumed in North Carolina.

You can find further guidance regarding your EIN in my article: How To Get An EIN For North Carolina LLCs.

Why Do You Need A North Carolina Sales And Use Tax Certificate Of Registration?

You must obtain a North Carolina Sales and Use Tax Certificate of Registration to legally collect and remit sales tax and report use tax, and without it, your LLC risks penalties, interest, and loss of good standing, while registration ensures compliance with state tax laws.

I’ve explained why you need to register and how it impacts your operating ability in the following sections.

1. Administrative Penalties

Although not explicitly stated in the statutes, failing to properly display your license may be treated as operating without one and can result in the same penalties, including fines, misdemeanor charges, and possible business suspension.

Under G.S. § 105-236(2), North Carolina imposes penalties for operating without a required license, including the following:

• A penalty equal to 5% of the license fee for each month or partial month the license is missing, up to a maximum of 25%, with a minimum penalty of $5.
• An additional $1,000 penalty if you continue operating after receiving written notice from the Department.

2. Legal Requirement

Under GS § 105-236.(9), failure to file required tax returns, pay taxes, keep records, or provide required information to meet certain tax obligations is considered a serious offense and may result in the following:

• A class 1 misdemeanor charge for intentional non-compliance.
• Criminal charges may be brought up to six years from the date of the violation.

Key Contact Information For The NCDOR

If you encounter any difficulties during the registration process, you can contact the NCDOR for assistance using the information below:

Street address
501 North Wilmington Street
Raleigh, NC 27604

Mailing address (For most tax returns and correspondence)
Post Office Box 25000
Raleigh, NC 27640-0640

Locate nearby service centers using the Department’s office locations page.

Frequently Asked Questions