North Carolina has over 18,000 independent restaurants, with Charlotte, Raleigh, and the Research Triangle driving most of the growth. The North Carolina Restaurant and Lodging Association reports that the industry employs nearly 500,000 people statewide. North Carolina's regulatory structure is straightforward compared to states like New York or California, but the ABC Commission's control over liquor creates specific steps that closing owners must follow carefully.
North Carolina Liquor License (ABC Permit)
North Carolina does not use the term "liquor license" -- it uses ABC permits, issued by the North Carolina ABC Commission. North Carolina operates a control state model for spirits: the state controls the wholesale distribution of spirits through ABC stores, while beer and wine are distributed through private wholesalers.
ABC permits in North Carolina have limited secondary market value because they are not quota-based -- any qualifying business can apply. When you close, you must surrender your ABC permit to the NC ABC Commission. There is no transfer mechanism to sell the permit separately from the business. If you are selling the business as a going concern, the buyer applies for a new permit.
Contact the NC ABC Commission at least 30 days before closing to initiate the surrender process. You must also account for all on-hand spirits inventory, which must be returned to the ABC system -- you cannot sell it to another licensee or a distributor.
North Carolina Final Paycheck Law
Under North Carolina General Statute 95-25.7, final wages are due on the next regular payday after separation. The North Carolina Department of Labor enforces wage claims. North Carolina allows employees to recover unpaid wages plus interest and attorney's fees through the Wage and Hour Act.
North Carolina does not require payout of accrued vacation unless your written policy explicitly promises it. If your policy is silent, you are not obligated to pay out unused vacation.
North Carolina WARN Act
North Carolina does not have a state WARN Act. The federal WARN Act (100+ employees) applies. The North Carolina Department of Commerce administers WARN Act notifications in the state. Most independent restaurants are below the federal threshold.
North Carolina Sales Tax
File a final sales and use tax return with the North Carolina Department of Revenue. North Carolina's combined state and local sales tax rate is 7% in most counties (4.75% state plus 2.25% county). Close your sales tax account through the Department of Revenue's online portal. North Carolina also taxes prepared food at a higher rate in some jurisdictions -- ensure your final return reflects the correct rate.
North Carolina Secretary of State Dissolution
To dissolve a North Carolina LLC, file Articles of Dissolution with the North Carolina Secretary of State. For a corporation, file Articles of Dissolution. The filing fee is $30. North Carolina does not require a tax clearance certificate before dissolution, but the Department of Revenue recommends closing all tax accounts first.
County Health Permit
North Carolina food service permits are issued at the county level by county health departments, not the state. Contact your county health department to cancel your food service permit. In Mecklenburg County (Charlotte), contact the Mecklenburg County Health Department. In Wake County (Raleigh), contact Wake County Environmental Services.
For the full exit checklist, see The Restaurant Exit Checklist: What to Do Before You Shut the Doors. For guidance on talking to your staff, How to Tell Your Restaurant Staff You're Closing covers the conversation.
The Correct Sequence
Notify employees, pay final wages on next regular payday, file final sales and use tax return, cancel county health permit, surrender ABC permit to the NC ABC Commission, file Articles of Dissolution with the Secretary of State.