Key contributors to North Carolina’s GDP include finance, pharmaceuticals, and technology. The state’s largest city, Charlotte, has become a huge U.S. financial center, second only to New York.
North Carolina is also home to the largest research park in the U.S. Research Triangle Park (RTP) — named because of its proximity to Duke, the University of North Carolina at Chapel Hill, and North Carolina State University — is a major hub for technology and biotech companies.
What are the reasons for doing business in North Carolina?
Access to a strong talent pool is essential to a region’s economic competitiveness and performance, and North Carolina’s highly educated and skilled workers are able to meet the needs of businesses in diverse industries. According to the Economic Development Partnership of North Carolina (EDPNC), North Carolina has the largest number of manufacturing workers in the southeast.
A competitive tax climate, access to capital, performance-based incentive programs, and an affordable cost of living are other factors that contribute to North Carolina’s popularity with business owners. In 2022, 171,400 new businesses were created in the state, which was just under 2021’s record-setting number of 178,300.
What is the cost of business in North Carolina?
The tax system in North Carolina was ranked 10th in the nation by the Tax Foundation in their State Business Tax Climate Index. North Carolina has a low corporate income tax rate of 2.50%, a flat individual income tax rate of 4.75%, and a state sales tax rate of 4.75%. There is an additional local sales tax that varies by jurisdiction; the average combined state and local sales tax rate is 6.89%.
How is North Carolina’s infrastructure?
Businesses in North Carolina are able to access domestic and global markets via North Carolina’s extensive highway and rail system, four international airports, and two deep-water seaports.
The American Society of Civil Engineers (ASCE) gave North Carolina a grade of C-, citing a number of roads and bridges in need of repair. CNBC gave North Carolina’s infrastructure a grade of B in its top states report. CNBC’s methodology takes into account broadband access while the ASCE report does not.
What are the challenges of doing business in North Carolina?
North Carolina received a D+ grade in the category of life, health, and inclusion in CNBC’s top states report. North Carolina does not have a law protecting nondisabled residents from discrimination. The state also lags in per capita public health spending and hospital resources.
In addition, the state has been experiencing a tightening labor market due to an aging population.