Carulli was born to an affluent, upper-class family in Naples. His father, Michele, was a distinguished literator, secretary to the delegate of the Neapolitan Jurisdiction. Like many of his contemporaries, he was taught musical theory by a priest, who was also an amateur musician. Carulli's first instrument was the cello, but when he was twenty he discovered the guitar and devoted his life to the study and advancement of the guitar. As there were no professional guitar teachers in Naples at the time, Carulli developed his own style of playing.