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Limited Liability Companies in North Carolina – A Quick History

(August 4, 2023) The limited liability company (LLC) is a relatively new business entity in the United States. The first LLC statute was enacted in Wyoming in 1977, and North Carolina followed suit in 1989. The LLC quickly became popular in North Carolina, and today it is the most common type of business entity formed in the state.

There are several reasons for the popularity of the LLC in North Carolina. First, the LLC offers the limited liability protection of a corporation, but it also allows for pass-through taxation, which means that the profits and losses of the LLC are passed directly to the members, who then report them on their individual tax returns. This can be a significant advantage for small businesses, as it can save them money on taxes.

Raleigh, NC –  View of downtown Raleigh from the legislative building with the North Carolina state seal in foreground

Second, the LLC is a flexible business entity. The members can customize the operating agreement to fit the specific needs of their business. This can be helpful for businesses that want to have a say in how they are managed or that want to protect certain assets from liability.

Third, the LLC is easy to form and maintain. The filing requirements are relatively simple, and there are no annual franchise taxes. This makes the LLC a cost-effective option for small businesses.

The popularity of the LLC in North Carolina is likely to continue to grow in the years to come. The LLC offers a number of advantages that make it an attractive choice for small businesses.

In addition to the information above, here are some other notable events in the history of LLCs in North Carolina:

  • 1993: The North Carolina legislature passed a law allowing professional limited liability companies (PLLCs), which are LLCs that are owned and operated by professionals such as doctors, lawyers, and accountants.
  • 2013: The North Carolina legislature passed a law allowing series LLCs, which are LLCs that can be divided into separate “series” for liability purposes.

The LLC is a versatile and popular business entity that has become an important part of the North Carolina economy. The corporate group at Bray & Long bring decades of experience to business owners in the formation and structure of corporate entities. For more information and assistance, feel free to contact William Bray ( or Brian McCully ( and they can guide you through the creation of your LLC.