How to Syndicate an Apartment Deal in North Carolina

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What is the North Carolina Rule 506 notice filing?
How do you form the deal LLC in North Carolina?
What North Carolina landlord and tenant rules should a sponsor know?
How does North Carolina property tax work when an apartment building sells?
Does North Carolina tax the deal LLC or its investors?
How DoorRaise fits in
FAQ

To syndicate an apartment deal in North Carolina, you form the deal LLC (or register an outside LLC with the North Carolina Secretary of State), raise under Rule 506(b) or 506(c), and file a Form D notice with a $350 fee through NASAA's EFD, generally within 15 days of your first North Carolina sale. The state also sets a yearly LLC report, caps on security deposits and late fees, and a county revaluation cycle that does not reset on a sale.

This is the North Carolina version of our general syndication guide. It covers what changes when the building, the investors or both are in North Carolina. It is general information, not legal advice.

What is the North Carolina Rule 506 notice filing?

North Carolina treats Rule 506 interests as federal covered securities and wants a notice. You file the SEC Form D copy and the fee through the NASAA Electronic Filing Depository (EFD) for the Securities Division of the Secretary of State. DoorRaise's state data, from NASAA's fee schedule, lists the fee as $350, with no separate late fee listed. The common state deadline is 15 calendar days after the first sale in the state. EFD shows the exact amount before you pay, and that amount wins. See blue sky notice filings for the framework and blue sky fees by state for every state.

How do you form the deal LLC in North Carolina?

A North Carolina LLC is formed by filing Articles of Organization with the Secretary of State; the published fee is $125. An LLC formed in another state that will own North Carolina property applies for a Certificate of Authority with a certificate of existence from its home state; the published fee is $250. North Carolina LLCs file an annual report with the Secretary of State, published at $200. Confirm each fee on the Secretary of State fee schedule before you file. Choosing the state of formation is covered in forming an LLC for a syndication and foreign qualification in the property state.

Residential leases fall under the Residential Rental Agreements Act (General Statutes 42-38 and following), and evictions, called summary ejectment, start in magistrate court. A landlord must return a security deposit, or an itemized statement of deductions, within 30 days after the tenancy ends (42-52). The deposit is capped by lease type: two weeks' rent for week to week, one and a half months for month to month, and two months for longer terms (42-51). Late fees are limited by 42-46: for a monthly tenancy, generally no more than the greater of $15 or 5% of the rent, and not before the rent is five days late. Check the statute for other tenancy types. Your property manager should apply these limits in the lease form from day one.

How does North Carolina property tax work when an apartment building sells?

North Carolina counties reappraise all real property on a set cycle, at least once every eight years (G.S. 105-286), at market value. A sale does not trigger a reappraisal, but a high purchase price is strong evidence at the next one, and counties can also adjust in between for changes to the property. Underwrite taxes off your purchase price and the county's revaluation date, which is public. See property tax reassessment in apartment underwriting and appealing property tax on an apartment building.

Does North Carolina tax the deal LLC or its investors?

North Carolina taxes income earned in the state, including a nonresident investor's share of the LLC's North Carolina income, so out of state investors may need a North Carolina return. The state also has a franchise tax that applies to corporations; ask your CPA how it treats an LLC taxed as a partnership. The investor side is in state tax returns for nonresident syndication investors.

How DoorRaise fits in

DoorRaise helps sponsors raise equity for apartment buildings from their friends and followers under Rule 506(b) or 506(c), with verified accredited investors only. Investors fund by wire into escrow. By default DoorRaise files the property's state notice; on new deals, the first investor from another state pays that state's filing fee by card when they sign, and later investors from that state pay nothing. See pricing or how it works.

FAQ

How much is the North Carolina Rule 506 notice fee?

$350, per NASAA's fee schedule. EFD shows the final amount before you pay.

When is the North Carolina notice due?

Generally 15 calendar days after the first sale to a North Carolina investor. One filing covers the offering.

What is the maximum security deposit in North Carolina?

Two weeks' rent for week to week, one and a half months for month to month and two months for longer tenancies.

Does a sale reset North Carolina property tax?

No. Counties revalue on a cycle of at most eight years, and a sale price is evidence at the next revaluation.

Sources

This article is general information as of November 2026, not legal, tax or investment advice. State laws and fees change: confirm with the state agency and your own attorney before you file. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.