Strategic CPA Services for Private Companies in Raleigh, NC

C corporations and S corporations doing business in North Carolina generally owe franchise tax, calculated on a net worth base, with a minimum amount due even in a loss year. LLCs taxed as partnerships generally do not. The rules were revised in recent years, so the calculation may differ from what your company filed previously.

North Carolina permits an eligible S corporation or partnership to elect entity-level taxation, which can generally preserve a federal deduction for state income taxes that would otherwise be subject to the individual SALT deduction rules. The federal benefit generally does not depend on the owners itemizing. Whether the election actually helps depends on the owners' residency, the entity's North Carolina source income, the owners' federal tax profiles, and any state credits or deductions in play.

Timing matters as much as the analysis. For tax years beginning on or after January 1, 2023, the election is annual, must be made on a timely filed North Carolina return, and generally cannot be made or revoked after that return is filed. There is no correcting it later, which is why the election should be modeled before the return is filed rather than revisited afterward.

Earlier than most companies do. If your year end is December 31 and your lender needs statements by a set date in spring, the useful work happens in the fall: cleaning up the books, resolving open items, and confirming what documentation your team will need to produce. Companies that start in January are usually compressing a process that would have gone smoothly with more runway.

That's usually decided by whoever is asking for the statements, not by the company. Lenders, sureties, franchisors, and buy-sell agreements each specify a level, and the requirement is typically written into the loan covenant or bond application. A compilation provides no assurance, a review provides limited assurance through analytical procedures and inquiry, and an audit provides the highest level available through testing and third-party confirmations. If you're unsure which applies, send us the requirement language and we'll tell you what it calls for.

Yes, and the value comes from starting years ahead rather than months. A buyer's diligence will examine the quality of your financial records, your entity structure, your tax positions, and how dependent the business is on the owner. Each of those can be improved with time and is expensive to fix under a signed letter of intent. We coordinate with your attorney and financial advisor so the tax and financial reporting side supports the deal structure.