Pass-Through Entities (Default for most LLCs): If the business is a single-member LLC, it is treated as a "disregarded entity," meaning the owner reports business income/losses on their personal Form 1040 (Schedule C).Self-Employment Tax: Owners are typically subject to a 15.3% self-employment tax (Social Security and Medicare) if net earnings are $400 or more, reported via Schedule SE.Corporations: If the business elects to be taxed as a C-Corp or S-Corp, it must file a separate return (Form 1120 or 1120-S).2. North Carolina State TaxesCorporate Income Tax: For businesses taxed as corporations, the NC tax rate is currently 2.5% for 2024 (decreasing to 2.25% in 2025).Franchise Tax: Most corporations and some LLCs doing business in NC must pay a franchise tax for the privilege of operating in the state. The minimum payment is typically $200.Sales and Use Tax: While many "administrative services" are exempt, certain "repair, maintenance, and installation" (RMI) services or the sale of tangible property are subject to a 4.75% state rate plus local county taxes.3. Employment & Administrative FilingsWithholding Tax: If Salazar Contractor has employees, it must withhold NC income tax and file periodic reports (e.g., Form NC-5).Annual Report: NC LLCs must file an annual report with the Secretary of State by April 15th, which carries a $200 filing fee (if filed online).Summary of FormsRequirementPrimary FormDue DateIndividual/LLC IncomeSchedule C (1040)April 15NC Corp Income/FranchiseForm CD-40515th day of 4th monthNC Sales & Use TaxForm E-500Monthly or QuarterlyNC Annual ReportSOS Online FilingApril 15For specific advice on your business structure, it is recommended to consult with a tax professional or contact Salazar Contractor directly via their inquiry form.