North Carolina Privilege License Requirement Update

Effective July 1, 2024, North Carolina will no longer require professional privilege licenses outside of loan or finance companies. The previous statute required every individual in North Carolina to obtain a privilege license before practicing a profession or engaging in business activities.

What is a Privilege License?

State privilege license taxes were imposed for the privilege of carrying on business operations in North Carolina. These taxes were in addition to any regulatory or qualification requirements to engage in the practice of a profession, business, or trade. Before a person could engage in a business, trade, or profession for which a license was required, the person had to hold a privilege license. The license had to be displayed conspicuously at the location of the licensed business, trade, or profession. The penalty for failing to obtain a license was up to 25% of the amount prescribed for the license per month. 

Who is Impacted by the Change?

With the repeal of the privilege license requirement, any person who practices a profession such as: 

• Physician
• Surgeon
• Chiropractor
• Dentist
• Optometrist
• Physical Therapist
• Veterinarian
• Professional Engineer
• Land Surveyor
• Architect
• Real Estate Broker/Salesperson
• Photographer
• Home Inspector
• Accountant
• etc.

Will no longer need a privilege license to operate in North Carolina. For the complete list, read the announcement released by the state of North Carolina. 

Note that while the privilege license is no longer required, businesses must still maintain proper corporate registrations with the Secretary of State.

Keep Up with Licensing Requirements

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