Local Requirements

 1. The first step in establishing a business is to determine that the proposed location is zoned properly for the proposed business.  Even if you plan on working from 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.  

Durham City-County Planning Department
101 City Hall Plaza, Durham, NC 27701
(919) 560-4137, Fax: (919) 560-4641

Durham City-County Tax Office
Durham County Administrative Complex (Ground Level)
200 E. Main Street, Durham, NC 27701
(919) 560-0300

2. The second step is to obtain a Business Privilege License.  Contact the Tax Collection Offices of the City and County.

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 a business privilege license is determined by a fee schedule available for review at both offices.  

If your business will be operated under any name other than yours or your business partner(s), file an Assumed Name Certificate with the Register of Deeds.

Office of the Register of Deeds
Durham County Administrative Complex (Ground Level)
200 E. Main St., Durham, NC 27701
(919) 560-0480

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.

North Carolina Department of Revenue
License and Excise Tax Division
PO Box 25000, Raleigh, NC 27640-0640
(919) 733-3673

2. If your business will be incorporated in North Carolina, file Articles of Incorporation with the Department of the Secretary of State.

Dept. of the Secretary of State
Corporations Division
2 South Salisbury Street, Raleigh, NC 27601
(919) 807-2225

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 or to obtain a Wholesale Merchant's certificate of Sale, please contact the NC Dept. of Revenue, Sales and Use Division.

North Carolina Department of Revenue
Sales and Use Division
501 Wilmington Street, Raleigh, NC 27604
(919) 733-2151

4. Certain taxes must be withheld from employee wages and submitted to the federal, state and local governments. If you will be paying wages to one or more employees, complete an Application for Withholding Identification Number for your business with the North Carolina Department of Revenue.

North Carolina Department of Revenue
PO Box 25000, Raleigh, NC 27640-0640
(919) 733-3991, Fax (919) 715-2999

Other State Requirements and Tax Information:

1. Incorporated businesses are required to file annual franchise and income tax returns with the state.

North Carolina Department of Revenue
Corporate Income and Franchise Tax Division
501 Wilmington Street, Raleigh, NC 27604
(919) 733-3166

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.

Employment Security Commission of N.C.
1105 Briggs Avenue, Durham, NC 27701
(919) 560-6880

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.

North Carolina Industrial Commission
4319 Mail Service Center, Raleigh, NC 27699-4319
(919) 807-2500, Fax: (919) 715-0282

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.

North Carolina Department of Labor
Occupational Safety and Health Division
4 West Edenton Street, Raleigh, NC 27601-1092
(919) 807-2875

Federal Requirements

1. If you have employees, the "Small Business Kit" is essential for navigating federal regulations.  Call the Internal Revenue Service at (800) 829-3676 and they will mail it 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, 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.

Internal Revenue Service
3308 Chapel Hill Blvd., Suite 132, Durham, NC 27707
(800) 829-1040

Startup Directory and Job Board

To view startups in Durham and the Triangle, visit www.downtowndurhamstartups.com and submit a free profile.  You can also post any internships or job opportunities or simply connect with other entrepreneurs!

Office Space

Depending upon the stage of your company and desired amenities, there are a number of office space options for entrepreneurs in Durham.  For downtown office space, visit www.downtowndurham.com and select “Find your space”.

For social entrepreneurs, Durham has a nationally acclaimed incubator called Bull City Forward (BCF), a partner organization of the Chamber. BCF allows entrepreneurs to rent a desk by the month or year at a low cost while also providing a community of peers and support organizations. For more information, visit www.bullcityforward.org.

Finally, there are many other incubators in the community including First Flight Venture Center that offer a great place to start. Visit www.ffvcnc.org for more information. And don’t forget the dozens of outstanding coffee shops and bars that are great places to meet.

Accelerators

Durham is home to two dynamic accelerators, LaunchBox Digital and Joystick Labs. LaunchBox Digital brings nearly ten companies to Durham each year for an intensive, three month program that condenses the first year of a company’s life cycle into three months. Companies receive up-front cash, a team of mentors and advisors, and free office space in exchange for an equity stake. LaunchBox focuses on software and technology companies.

Similarly, Joystick Labs is an accelerator focused on gaming companies. The gaming cluster in the Triangle and North Carolina is swelling and Joystick Labs is bringing bright startups from around the country to Durham to accelerate their concepts. Both accelerators are located adjacently at the American Underground.  

Networking Opportunities

There are a variety of meet-ups in the Triangle that give entrepreneurs a chance to gather and talk shop.

RTP New Tech (www.meetup.com/RTP-New-Tech/)

Splat Space (www.splatspace.org)

Refresh the Triangle (www.refreshthetriangle.com)

The Stampede is an initiative of the Greater Durham Chamber of Commerce that offers selected startups 60 days of free space in downtown Durham, along with access to technical experts and successful entrepreneurs. The goal is to highlight the incredible startup community in Durham and give entrepreneurs first-hand exposure to talent, resources, and other startups that are here.

The Chamber ran the first Stampede in April of 2011 with great success. Over 75 companies applied and 15 were selected. Nine took up residence in Durham, three are actively raising equity investments and another three are launching products.

This fall, the Chamber will launch the next Startup Stampede and accept applications from companies interested in participating and discovering all the great things happening in Durham. For more information, visit www.startupstampede.com or on Twitter @StartupStampede.