When was the last time you verified that your business is in good standing with the North Carolina Secretary of State? Is your real estate firm or education provider entity truly authorized to operate today?
The Commission would like to remind licensed real estate firms and certified education providers that it is very important to keep their business entities active and in good standing with the North Carolina Secretary of State (NCSOS). This is not just a paperwork requirement—it is the law.
Annual Requirements with the NCSOS
All businesses registered with the NCSOS, including corporations, LLCs, and limited partnerships, must meet yearly requirements to stay active. This usually includes filing an annual report and paying required fees by the deadline. The exact requirements may differ depending on the type of business. The Secretary of State’s website explains these obligations in more detail for each type of entity.
What Happens If You Do Not Comply
If a business does not meet these requirements, the NCSOS may dissolve, revoke, or suspend the entity. When this happens, the business is no longer allowed to operate. This means it cannot conduct real estate transactions or offer courses as a certified education provider.
The Commission regularly checks the status of licensed firms and certified education providers with the NCSOS. If your entity is not in good standing, the Commission will require you to fix the issue right away. Even if your firm license or education provider certification is active with the Commission, you cannot legally do business through an entity that is not in good standing with the Secretary of State. Your entity must be reinstated before business can continue. Failure to do so may lead to the cancellation of your firm license or education provider certification.
Beyond Commission action, operating through a dissolved or revoked entity can create serious legal and financial risks. An inactive entity cannot enter into valid contracts, which may put real estate transactions and client agreements at risk. In addition, the legal protections of the business entity may no longer apply, meaning brokers could become personally responsible for debts, penalties, or legal claims.
How to Avoid Business Disruptions
Staying compliant is straightforward. File your annual reports, pay required fees on time, and address any issues as soon as they arise. If your entity becomes inactive, act quickly to reinstate it. The NCSOS website offers an online system to check your status and submit required filings.
Failing to maintain your entity’s status can disrupt your business and lead to serious legal and financial consequences. For more information about annual requirements, visit the North Carolina Secretary of State’s website at www.sosnc.gov.