The Internal Revenue Service requires organizations to obtain an employer identification number. Do you have a lot of confidence in an easy way to obtain and meet the requirement, though? The North Carolina Tax ID Application Guide can help you understand everything easily. It will help you get through the online application process and cut through all of the potential areas of confusion. With the help of the guide, you can get an EIN quickly whether you are a Non-Profit, LLC, Corporation, or any other type of organization.
Steps to Obtain your Tax ID (EIN) Number in North Carolina:
- Prepare Required Information
- Apply for a North Carolina Tax ID Online
- Apply for a North Carolina Tax ID by Phone, Mail or Fax
- Do I Need a State Tax ID Number for My Business?
- How Do You Apply for a State Tax ID Number?
- How Do I Get a North Carolina State Tax ID Number?
Your first job should be to prepare the information you’ll need during the application process. Before you get your tax ID, you’ll need to fill out a few forms, and the process goes much faster if you already have all the information prepared ahead of time.
Fortunately, this information is easy to obtain. First, you’ll need to have your business’s name in place. You’ll need the full legal names of any founders and partners in the business, as well as their legal addresses. You’ll also need to have their social security numbers. Once you have these bits of information for all members of your business, you should have no trouble completing the application.
Applying for a tax idea requires you to answer several questions about your businesses, and submit your application- but there are multiple ways you can apply. By far the fastest and easiest way to apply is through an online application. Applying online is convenient because all you’ll need is an internet connection. You can also apply at any time of day, and on practically any device. It’s also incredibly fast; you should be able to complete the application in a matter of minutes, or certainly less than an hour, as long as you have the right information already in front of you.
Once you submit your application, you’ll need to wait for it to process- but online, that processing only takes an hour. Then, you’ll receive your tax ID via email, so you can start using it immediately. This option is ideal for business owners who wanted to get started as soon as possible.
That said, there are a handful of alternative options available for business owners who prefer a traditional approach. No matter which method you choose, you’ll still be following the same basic formula- answering many of the same questions to fill out an application, then submitting that application and waiting for it to process. If you do this over the phone, you’ll answer questions in an interview style. If you fill out the application by hand, you’ll be able to mail it in or fax it, both of which take far more time than doing the application online. Worst of all, you might have to wait up to 4 to 6 weeks for your application to process with these methods.
There are two different types of tax IDs you might need to consider in your North Carolina business. The first and most important is your federal tax ID, also called an employer identification number (or EIN). This is an ID number that serves your business on a federal level; it registers your business with the federal government, and will be used for many high-level business applications. For example, you’ll need a federal tax ID if your business is going to have multiple members, or if you plan on hiring employees. Federal tax IDs are also used for tax purposes, and you’ll need one if you’re going to open a business bank account or apply for business credit.
You’ll need a North Carolina state tax ID number for your business at a state level. You’ll need one if you plan on hiring employees in North Carolina, if you’re going to sell taxable goods and services in the state, or if you plan on owing excise taxes, which apply to certain types of regulated goods.
If you know you need a state tax ID number for your North Carolina business, you’ll be pleased to know the process for applying for one is similar to the process for applying for a federal tax ID. You’ll need a similar collection of information about your business and your partners, though you may also need to have a federal tax ID in place.
Like with your federal tax ID application, you’ll have the option of applying online or applying through one of several traditional methods (like applying over the phone or via fax). The overwhelmingly advantageous option is to apply online; this process is much easier to complete, much faster, and you’ll get your state tax ID via email instead of having to wait several additional weeks. However, you should be aware that while applying for a state tax ID is faster online than it is through traditional processes, it may still take a few weeks to process.
If you’re confused about whether you need a federal tax ID number, a North Carolina state tax ID number, or both, there are a few considerations to keep in mind. Most businesses in North Carolina will need both a federal tax ID and a North Carolina state tax ID number. You’ll need a federal tax ID if you hire any employees, if your business has multiple members, or if you’re going to apply for things like business licenses and permits, bank accounts, or lines of credit.
You’ll need a North Carolina state tax ID number for state-specific business functions, like hiring employees in the state, selling goods and services that require taxation in the state, or selling goods for which you’ll owe excise taxes. The best way to get either of these tax ID numbers is to apply online.