Tax Info for Businesses

Employee or Contractor? Proper classification of the people performing business services for you is critical.
Click here for the IRS guidelines in making the determination.

A Form 1099 must be filed each year for individuals and unincorporated entities (including LLCs) to whom your business paid $600 or more for professional services, business services or rent. A Form 1099 must also be filed if your business paid an individual or unincorporated entity more than $10 in royalties.

PRO TIP: To protect your business from steep penalties related to noncompliance with Form 1099 rules, request a Form W-9 upon hiring/contracting with a person or unincorporated entity for business services. Do not pay them until you receive the completed and signed form.

For Employers – See below for links to employer payroll forms

• Form W-4 – Must be given to employees upon hiring. Used to calculate Federal income tax withholdings.

• Form NC-4 – Must be given to employees upon hiring. Used to calculate NC income tax withholdings. Most employees can use Form NC-4EZ. The second link here contains the full NC-4.

Business Mileage Log & Guidance – The 2026 Federal standard mileage rate for business purposes is 72.5 cents per mile. This log (click here to download) can be downloaded and printed to keep track of your business mileage. There are also a variety of apps that can be downloaded on your phone to track mileage.

Have an LLC in NC? – Make sure you file an Annual Report with the Secretary of State by April 15th. It’s quick and easy to complete this online. Click here to navigate to the NC Secretary of State website to find instructions for filing Annual Reports online. Failure to file each year may result in the dissolution of your business in NC.

Employing Your Minor Children In Your Small Business – It is perfectly legal to hire and pay your children to work at your business as long as the following requirements are met:
• They must perform age-appropriate services for the business.
• They must be paid only for services performed at the same rate as other workers.
• If they earn more than $600 during the year, their compensation must be reported either on a Form 1099 or Form W-2.