How To Get An EIN (Tax ID) Number In North Carolina
North Carolina has a low sales tax, a low corporate/franchise tax, and a supportive business environment. However, even in a relatively low-tax state, your business will still need to file a variety of state and federal tax forms. To do so, you will need a state and a federal tax ID.
Wondering how to get these numbers? This guide outlines the basics of obtaining a state tax ID and an EIN number North Carolina business owners need to know. Keep reading to get an overview of the process.
How To Apply For A Tax ID Number In North Carolina
One of the first things you need to do when opening a new business is obtain a North Carolina EIN number. Short for employer identification number, the EIN number is required on payroll tax forms. You also need it if you hire contractors who need taxes withheld or if you simply don’t want to put your personal tax ID on their 1099 forms.
Banks will also request this number if you want to open an account or take out a loan in your business’s name. The majority of new businesses as well as trusts, nonprofits, and several other types of entities require an EIN. If you’re buying an existing business or changing the structure of your business, you need to get a new EIN. Don’t transfer the EIN between owners because then, you may end up on the hook for unpaid taxes linked to the old owner’s EIN. Keep reading to learn how to get this number.
Prepare The Required Information
First, figure out what you need for the application. Preparing in advance will help you navigate the process more smoothly. Whether you apply online or through the mail, you need the following details:
● Name and contact info for the business or other entity.
● Name and tax ID of a responsible party who can make financial decisions for the business.
● Type of business entity.
● The principal line of merchandise or service. You don’t have to fill out this section if you’re applying for an EIN for a non-business entity.
● Why you’re applying for an EIN.
● Details about your LLC or corporation if applicable.
● Estimated number of employees that you expect to pay during the next 12 months.
If this is your first time hiring an employee, you should be aware that you will need to file payroll tax forms. Generally, you file quarterly, but if you pay less than $5,000 in wages per year, you may be able to file annually. You can make that election when you file Form SS-4 to obtain an EIN.
To get a North Carolina EIN number online, you just need the details listed above. Then, you complete your EIN application through a secure web-based application. At the end of the process, you will get a number that you can start using immediately.
Submit Your Application Via Mail
Don’t want to use the internet? Prefer a paper-based process? Then, you should apply through the mail. If applying for a mailed EIN number North Carolina business owners should expect to wait six to eight weeks for the number.
Frequently Asked Questions
Starting a new business can be a daunting experience, and even after reviewing the information above, you may still have questions. Here are answers to some commonly asked questions.
A tax ID number is a unique number that you use to identify your business on tax forms and bank documents. When it comes to the federal EIN number North Carolina businesses almost always need this number.
No, the NC Secretary of State (SOS) does not issue EINs or any other North Carolina tax ID number. However, you may need to contact the SOS about incorporating or setting up an LLC if needed.
An EIN is not the same as a North Carolina tax ID number. An EIN is a federal number, while an NC tax ID is a state number. You put the EIN on tax forms for the IRS, while you use the state ID on tax forms for the NC Department of Revenue.