How to Get an EIN (Tax ID) Number in North Dakota
If you can endure the cold winters, North Dakota offers a lot of potential for new business owners. The state has a low net migration rate, a strong oil industry, a reasonable flow of tourists, and several small cities with relatively low costs of living. But before you can enjoy the benefits of the Roughrider State, you need to get a state and federal tax ID for your business.
To get a state ID and a federal EIN number North Dakota business owners need to know the following.
How To Apply For A Tax ID Number In North Dakota
To get started, you should take a few moments to decide if you need an EIN. Almost all businesses need this number, but there are a few exceptions. Namely, sole proprietors without employees or business bank accounts don’t need an EIN, but everyone else does.
If you answer yes to any of the following, you need an EIN number.
● Do you plan to hire employees?
● Do you plan to hire contractors who need taxes withheld from their payments?
● Do you prefer to use an EIN rather than your personal tax ID number on contractor forms?
● Are you forming a partnership or electing to be taxed as an S-corp?
● Are you incorporating your business?
● Do you want to open a business bank account?
● Do you plan to apply for loans or grants in your business’s name?
● Are you buying a business with an existing EIN?
● Are you changing the structure of your business?
In addition to the federal EIN number North Dakota business owners may also need a North Dakota tax ID number for filing state income tax, sales and use tax, and any other state tax returns. It’s also important to note that you may need an EIN if you run a nonprofit, a trust, an estate, or a few other types of entities.
Prepare The Required Information
Now that you’ve figured out whether or not you need a North Dakota EIN number, you need to get the information ready for the application. Luckily, the EIN application is pretty short. Most business owners know the main questions off the top of their heads, but there are a few issues that you should consider including the following:
● Do you have a doing-business-as name that varies from your legal name?
● How many employees do you plan to pay wages to over the next 12 months? What’s the first date of payment? If you anticipate owing less than $1,000 in payroll tax, do you want to file quarterly?
● Is your business an LLC or a corporation? If you plan to set up these entities, you may want to do that before you apply for the EIN.
● Why do you need an EIN?
Once you have these details, you can move to the next step which is applying online or through the mail.
Want to get your EIN number as fast as possible? Then, you should apply online. Typically, you can finish the process in about 20 minutes, but to be on the safe side, carve out an hour of time. You will get the number right away and you can start using it as soon as you receive it.
Submit Your Application Via Mail
If desired, you can apply for the number through the mail. To get an EIN number North Dakota business owners should fill out a paper application. Then, they can mail or fax it to the IRS. Give yourself several weeks or up to two months if you take this route.
Frequently Asked Questions
Yes, most businesses need a tax ID number in North Dakota. The EIN identifies your business on IRS tax forms such as payroll, partnership, corporate, and excise tax forms. The state ID is for state tax forms.
The ND Secretary of State does not issue EINs or the North Dakota tax ID number. You must get the first one from the IRS and the second one from the ND Office of the State Tax Commissioner.
These numbers are similar but not the same. An EIN is a federal number, while the North Dakota number is a state number. Most businesses need both of these numbers.