Start Up Guide

Overview

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.  This information will help keep your new business start-up on the "right track."

Starting your own business does not mean that you will have to venture into the business world alone.  There are a number of organizations capable of assisting businesses.  Please refer to Section IV of this page for a list of organizations that provide technical assistance or advice to new businesses.

Local Requirements

  1. Typically, the first step in establishing a business is to determine that the proposed location is zoned properly for the proposed business.  Certain types of businesses will require a letter verifying the zone.  If your business is to be operated from your home, a Home Occupation Permit is required. Zoning Verification information and Home Occupation Permits are obtained from the Durham City-County Planning Department.  Be sure you have your tax identification number (available from the Tax Collections office) when requesting zoning information.                                                If your location is appropriate, you will receive your zoning verification with the appropriate signatures.                                                                                                                                                        
  2. Once you have your zoning compliance letter (or Home Occupations Permit), you then need to contact the Tax Collection Offices of the City and County to acquire Business Privilege Licenses.          
    • Durham City-County Tax Office
      Durham County Administrative Complex (Ground Level)
      200 E. Main St., Durham, NC 27701                                                                              (919) 560-0300
    • City of Durham Business License Office
      101 City Hall Plaza, Durham, NC 27701
      (919) 560-4700
    The fee for your business privilege license is determined by a fee schedule available for review at both the city and county collection offices.  Please call either of these agencies to determine your company's license requirement.                                                                                                                              
  3. If you are planning to operate your business under any name but your own or that of your partner(s), you must file an Assumed Name Certificate with the Register of Deeds.

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.
  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.
  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.
  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.
  5. Other State Requirements and Tax Information:
    1. Incorporated businesses must file annual franchise and income tax returns with the state.
    2. Any company employing one or more employees is required to provide unemployment insurance coverage for its workers.  The NC Employment Security Commission administers employer contributions to the Unemployment Insurance Fund.  For more information, contact their Durham office.
    3. 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.
    4. 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.

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 Durham 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 Durham.

Other Organizations to Assist You

  1. Greater Durham Chamber of Commerce
    Please call or stop by the Chamber of Commerce on the 14th floor of the Durham Centre building 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.
  2. The City of Durham, Office of Economic and Employment Development assists companies and individuals with their business needs in Durham.  The office provides economic and demographic data, and helps clients with specific issues related to site and building availability, the government approval process, financing options and more.
  3. The Service Corps Of Retired Executives (SCORE) represents a free service for businesspersons who need assistance in any of the facets of running a business.
    • SCORE
      411 West Chapel Hill Street, Durham, NC 27701-3616
      N.C. Mutual Plaza
      (919) 541-2171
  4. Good Work, Inc. provides training and technical assistance, loans, and networks of peer support to its small business members.
    • Good Work
      Bull City Business Center
      115 Market St., Ste. 470, Durham, NC 27701
      (919) 682-8473
  5. The Small Business Center at Durham Technical Community College offers counseling and business seminars for start-ups.
  6. Downtown Durham, Inc. will assist you if you are considering locating your business in the Downtown section of Durham.
  7. The Durham Business & Professional Chain is a not-for-profit organization dedicated to the facilitation, development, and growth of minority business endeavors.  Assistance with business plans, technology, marketing, and other services is available by appointment.
    • Durham Business & Professional Chain
      908 Fayetteville Street
      Durham, NC 27701
      (919) 683-1047
  8. The Small Business and Technology Development Center (SBTDC) offers free counseling and technical assistance by appointment to small business people.
  9. The Council for Entrepreneurial Development (CED) provides guidance to start-up and emerging growth-oriented companies in the Triangle through seminars, workshops and other activities.
  10. The Women's Business Center of North Carolina provides opportunities and tools to help women entrepreneurs achieve their business goals.
  11. Self-Help Credit Union is a community development lender and can assist with Small Business loans.
    • Self-Help Credit Union
      301 West Main St., Durham, NC 27701
      PO Box 3619, Durham, NC 27702
      (919) 956-4400 or (800) 476-7428
  12. The Durham Regional Financial Center's main office is a business incubator with startup and existing businesses as well as professional services ranging from legal and accounting to homeownership, financial literacy, social justice, debt relief, legal residency and naturalization.
    • Durham Regional Financial Center
      413 Chapel Hill St., Durham, NC 27701
      (919) 688-3381
  13. The Durham Public Library's main branch has a business reference room with information for starting a small business, making a business plan and more.
  14. The Small Business Administration is a federal agency offering financing, training and advocacy for small firms.  SBA's district office is located at Wake Technical Community College in Cary.  SBA's NC office is located in Charlotte.
    • Small Business Administration
      District Office
      Wake Technical Community Collge
      600 New Waverly Pl., Suite 200, Cary, NC 27511
      (919) 851-1891, Fax: (919) 851-9505
    • North Carolina Office
      6302 Fairview Rd., Suite 300, Charlotte, NC 28210
      (704) 344-6563, Fax: (704) 344-6769

WE WISH YOU ALL THE BEST WITH YOUR NEW BUSINESS!

Note: Information contained herein is not intended to be all-inclusive of every requirement for establishing a business.  Competent legal counsel is recommended and may be required to ensure that all licenses, taxes, and other requirements for establishing and conducting business are met. The Greater Durham Chamber of Commerce assumes no liability for omissions or errors in the business plans of any person resulting from use of this general guide to Business in Durham.