If you are planning to start or have just started a business in North Carolina, the very first thing you need is to obtain a NC tax ID number. Note that in this state, you need to have two different tax identification numbers such as the EIN and the state level tax ID.
How to Get an EIN?
Obtaining an NC tax ID is important especially when you start a business in North Carolina. You can be the executor or administrator of an estate, operating a non-profit organization, or a creator of a Trust. The Tax ID is otherwise known as the EIN and comprises a unique nine-digit number that will be used to identify your business. It works similarly like the social security number; however, it is for tax purposes. You also need the EIN to get business licenses, financing and opening a bank account.
What to Consider Before Applying?
Before you obtain NC tax ID, here are a few things to consider:
- You need to identify the structure of the business you plan to operate. These are important as for tax exemptions you are allowed and on how to pay your taxes.
- You need to identify the organization or individuals that serve as the responsible party.
- You need to identify the actual address of your business as well as specify a separate mailing address, which are requirements for EIN.
North Carolina State Tax ID
Aside from getting an EIN in North Carolina, the state will require you to obtain a NC Tax ID most suited for paying business taxes, state income tax and sales tax for all products or services you offer. The State tax ID will be used for sales and use tax, sales tax exemption permits, employee income tax withholding, and excise taxes for items like tobacco, alcohol, firearms, gas and oil, heavy machinery, and more.
To know how to apply for the NC tax ID number, you need to access the IRS website and choose the business section link for the application. To get the state tax ID number, you need the North Carolina Department of Revenue.