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North Carolina Business Law Questions & Answers
1 Answer | Asked in Business Formation and Business Law for North Carolina on
Q: How to change ownership of a s-corp?

I want to turn my s-corp into a woman owned company by bringing in my wife as the 51% share holder. This is in order to win contracts that are only open to minority and women owned companies.

Shane T. Johnson
Shane T. Johnson
answered on Dec 3, 2024

It depends on a number of issues. First, what type of entity is your company? Is it an LLC or Corporation? Either can elect to be an S-Corp as this is simply an election on how to be taxed by the IRS.

Either way, it would be wise to add your wife as an owner by creating a set of company...
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1 Answer | Asked in Gov & Administrative Law, Business Formation and Business Law for North Carolina on
Q: If I am a resident of North Carolina, would I be able to start an LLC in New York or any other state?

Are there certain things I need to be aware of or do? I have a business now in NC but would like to start a new one and also register the same (thats operated in North Carolina) one in New York and Florida if possible.

Jennifer Newton
Jennifer Newton
answered on Jun 12, 2024

As a resident of North Carolina, you can start an LLC in New York or any other state, but there are several considerations and steps to be aware of. First, you can form your LLC in any state, but you should consider the legal and tax implications; states like Delaware and Nevada are popular due to... View More

1 Answer | Asked in Arbitration / Mediation Law, Business Law and Civil Litigation for North Carolina on
Q: What can I do when my business partner refuses to provide financial statements and has substantially reduced dividend?

My mom died last year, and was 25% owner of a family shopping center. Since my mom's death, my Aunt Janet has substantially reduced the dividend she is paying me, she has claimed that my 25% is not enough for me to even have the right to see the banking records or financial statements now... View More

Tim Akpinar
Tim Akpinar
answered on May 2, 2024

A North Carolina attorney who deals with business law and business organizations (Corp, LLC, etc) could advise best, but your question remains open for five weeks. A starting point could be to reach out to law firms to review your paperwork, your business partner's actions, and outline your... View More

1 Answer | Asked in Business Law for North Carolina on
Q: In an S Corp, 50/50, losing money, only I believe the firm must stop operations and let go of employees. How do I remove

...remove myself from the liabilities incurred by the other party if he continues without my agreement, before the formal dissolution?

James L. Arrasmith
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answered on Apr 5, 2024

In a 50/50 S Corporation where you and your partner disagree on the future of the company, it's important to protect yourself from potential liabilities if your partner continues to operate the business without your agreement. Here are some steps you can take:

1. Consult with a...
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1 Answer | Asked in Real Estate Law, Business Law and Gov & Administrative Law for North Carolina on
Q: If I wanted to dropship manufactured houses that were expandable and are a resident of Nevada, what certs do i need

I want to start dropshipping cheap manufactured homes from chinese websites but I wonder if I need a liscense, LLC, ect to legally operate the buisness. Any insight?

Ben Corcoran
Ben Corcoran
answered on Feb 12, 2024

You can likely do this as a private individual. However, I would highly recommend forming an LLC to give you some legal cover. You should also have an attorney draft a contract that makes it very clear you are disclaiming as many warranties as possible regarding the condition of the homes. There... View More

1 Answer | Asked in Consumer Law, Business Law, Collections and Communications Law for North Carolina on
Q: Got a car from a "buy here pay here" lot. Made payments on time, but now after a year they keep texting me sayin Im late

I got a car for my son November 2022. All payments have been made, on time. But starting in December 2023, they keep contacting me saying I'm behind and and contacting me saying "if I need help making payments I can send a friend in and if they buy a car I will get $200.00". Is this... View More

Lynn Ellen Coleman
Lynn Ellen Coleman
answered on Dec 4, 2023

Take proof of all of your on time payments to them and speak to them about this. To cover yourself, you could mail in the proof with a letter complaining about the situation and asking them to stop the unjustified messages (get a tracking number and pproof of delivery). The "help making... View More

2 Answers | Asked in Copyright and Business Law for North Carolina on
Q: what are the legalities regarding 3d scanning an object, modifying it, then 3d printing and then selling that part?

I know that outright copying and selling is not legal. But what are the laws regarding scanning an object and improving upon the scan, or modifying it, and then 3d printing it to sell?

Sarah Teresa Haddad
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answered on Nov 2, 2024

If the average layman or person cannot tell the difference between the original object and the 3d printing, then it may be illegal. It depends on the full circumstances of how the original object is used and its consumers, compared to how the 3d printing will be used, and its market.

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1 Answer | Asked in Business Formation, Business Law and Gov & Administrative Law for North Carolina on
Q: Can I start a security guard company by hiring qualified personnel? What are the requirements for this?

I was wondering if I could hire qualified people to work for my security guard business without having a security license myself.

James L. Arrasmith
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answered on Oct 20, 2024

Starting a security guard company involves several important steps beyond just hiring qualified personnel. First, you need to ensure that your business complies with local and state regulations. This typically includes obtaining a business license and registering your company with the appropriate... View More

1 Answer | Asked in Business Law and Contracts for North Carolina on
Q: I sell solar and management is really bad and I want to leave but still make sure I’m getting properly paid for my deals

15. Term and Termination. This Agreement takes effect immediately as of the Effective Date, and remains in full force and effect until the Contractor has completed the Services (the "Term"), unless earlier terminated under this Section

This Agreement may be terminated by either... View More

Ben Corcoran
Ben Corcoran
answered on Jun 13, 2024

You will have to speak with an employment lawyer and show them your full employment contract; any advice based on one clause of a contract is all but useless.

1 Answer | Asked in Business Law for North Carolina on
Q: I'm the registered agent of a S Corp. Also one of the officers What happens if I resign?
Ben Corcoran
Ben Corcoran
answered on Apr 8, 2024

It depends on the corporation's bylaws and what you agreed to do when you were appointed as the registered agent. Speak with a local lawyer to get a better idea of your specific situation.

1 Answer | Asked in Business Law for North Carolina on
Q: If there are multiple heirs, can one heir buy another out or do all need to sign in order to buy out the one heir? In sc
Tim Akpinar
Tim Akpinar
answered on Jan 16, 2024

A North Carolina attorney could advise best, but your question remains open for four weeks. Some questions on this forum go unanswered, but you could try reposting under the Probate and Estate Planning for better chances of a response. Good luck

1 Answer | Asked in Banking, Business Law, Consumer Law and Contracts for North Carolina on
Q: What are the interest and late fee laws in NC on invoices specifically?
T. Augustus Claus
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answered on Nov 10, 2023

A late fee can only be charged on an invoice if the payment is more than 30 days past due. However, the parties to a contract may agree to a different grace period.

1 Answer | Asked in Agricultural Law, Business Law and Gov & Administrative Law for North Carolina on
Q: Is there a size minimum of a business to apply for distillery license?

I'm wanting to open a distillery but only want to have one small still to produce vodka, rum and gin

Lynn Ellen Coleman
Lynn Ellen Coleman
answered on Aug 17, 2023

The size is governed by your local zoning laws. I do not beleive that the NC Alchololic Beverage Commission has any minimum size regulation. You also have to obtain a Federal permit before you can get the North Carolina permit.

You can find information about the permitting process at...
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2 Answers | Asked in Business Law, Civil Litigation and Construction Law for North Carolina on
Q: If I was 2 hours away from being done I called and the home owner told me to not come back and he kept my tools and didn

Didn't pay me . Told me he would press charges if I contacted him . I priced the job at $3,000 I was only 2 hours from being done the next day of when I called the next day he complained and told me not to come back now he refuses to pay for the work that has been completed

Lynn Ellen Coleman
Lynn Ellen Coleman
answered on Jul 24, 2023

Send the homeowner a demand letter for the amount owed for work done so far and the value of the tools that he has in his possession. State that he may return the tools to you within 5 days and if he returns them in the same condition they were in with no damage, he will still owe you $x for the... View More

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Q: I have questions about business conspiracy. Would like to find lawyers in Durham area, specializing biz & employment law

Entity A and B teaming up to against my best interest - deferred salary and compensation, in a total over $170k.

N'kia (NLN)
N'kia (NLN)
answered on Jun 20, 2023

This is only a Q&A forum where members of the public can post legal questions and attorneys can provide legal information. To connect with an attorney to assist with a legal matter, you might try searching the directory and reaching out to someone directly. Good luck!

1 Answer | Asked in Copyright, Business Formation, Business Law and Trademark for North Carolina on
Q: I set up a blog about medicine and supplements. And I want to know if the name will get me in trouble. Doham.org

The name I selected is Department of health and medicine. In the about us section of the website, I have a disclaimer, saying that we are not a government organization. I am not making money from this website yet, but I plan to in the future. The LLC name is completely different so I will be DBA... View More

Matthew Alexander Toporek
Matthew Alexander Toporek
answered on Jun 15, 2023

Based on the information you provided, there is certainly a possibility that you could run into issues with that name. The best way to avoid receiving a cease and desist letter is to perform a comprehensive clearance search of the name before putting it in use. A proper search will reveal any... View More

1 Answer | Asked in Contracts and Business Law for North Carolina on
Q: If a storage unit is purchased by a new company and they fail to have me sign a new contract, does the old still apply?

I rented unit about 15y ago. Storage facility has been sold twice to new companies. Neither owner had me sign a new contract. Does the originally contract stand? Also, they've raised the rent 3x in last 2 years with NO 30 days notice like before. Contracts states 30 day notice must be... View More

Ben Corcoran
Ben Corcoran
answered on Jun 13, 2023

I would have to review your old lease, but that is likely the one that is now in effect. The bill could be construed as notice, but once again, I would have to review the lease. I would probably sue in small claims court but understand that you will likely never see any of the money.

1 Answer | Asked in Business Law for North Carolina on
Q: Can I sell something for more than what it is worth?

For example. Can I sell a sofa worth 2500 for 7500 via auction, and claim it is worth 13 to 15k in value when its only worth 2500? Is this legal?

N'kia (NLN)
N'kia (NLN)
answered on May 22, 2023

Giving a false and misleading statement about the value of an item to induce someone to buy it can be illegal. Additionally, most reputable auctions use independent experts to assess the value of auction items, rather than relying on the word of the seller.

2 Answers | Asked in Business Law and Business Formation for North Carolina on
Q: Are there other options for starting an animal shelter/rescue besides 501c3? I don’t have 3 unrelated board members
Will Blackton
Will Blackton
answered on May 2, 2023

While 501(c)(3) status is a common and often preferred option for starting an animal shelter or rescue organization, there are other ways to establish a nonprofit entity in North Carolina. Here are a couple of alternative options:

(1) Fiscal Sponsorship: Another option is to seek fiscal...
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1 Answer | Asked in Business Law and Construction Law for North Carolina on
Q: What is the maximum late fee in NC for home improvement invoices.

Customers get in no hurry to pay final invoice payments. Can I add late fees to invoice and if so how much?

Will Blackton
Will Blackton
answered on May 2, 2023

North Carolina courts have generally held that late fees must be reasonable and not excessive, and should generally relate to the actual damages suffered by the contractor for late payment. If you plan to add late fees to your invoices, you should make sure that the fees are clearly disclosed in... View More

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