Are you interested in learning how to get a tax ID number for your business as efficiently as possible?
Whether you’re managing a limited liability company (LLC), a corporation, a nonprofit, a sole proprietorship, or some
other type of business entity, you’ll probably need a tax ID number to operate legally. But what are the requirements that necessitate getting a tax ID number? And how can you get a tax ID number quickly?
This guide will walk you through the basics of tax ID numbers in North Carolina, including the most efficient methods to get the IDs you need.
Steps to Getting a North Carolina Tax ID (EIN) Number
- Requisite Information on Your Business
- Faster Application: Get Your North Carolina Tax ID Online
- Phone, Mail or Fax: Apply for a North Carolina Tax ID Traditionally
- Do I Need a Tax ID Number for My Business?
- What’s the Best Way to Apply for a State Tax ID Number?
- North Carolina State Tax ID Number: What It Is and How to Get One
You can apply for a tax ID using one of several different methods, but all those methods have the same basic process in common; you’ll answer several questions about your business, as well as your founding members, and when finished, you’ll receive your tax ID from the government.
Accordingly, you can complete the application much faster if you have the necessary pieces of information gathered ahead of time. You won’t need much. You’ll need to provide the full legal names and legal addresses of your business’s founding members (which means you and any partners you have), as well as their social security numbers (SSNs) for registration purposes.
Some application methods are strictly better than others. While some people may have a subjective preference on how to apply, there are too many advantage of the online application to ignore.
Applying online can be done no matter where you are, or when it is. Rather than waiting for specific hours or tracking down a paper application, you can access the online application any time, so long as you have access to an internet-connected device. The form itself is easy to understand and navigate online. In fact, if you have all the right information on hand already, you can usually complete the application in 5 minutes or less.
When you’re done with the application, you’ll realize the true value of the online application; its remarkable turnaround time. Once you’ve submitted the application, you can count on getting your tax ID number via email in an hour or less.
The online application is much faster and more convenient, but there are alternative methods available. Traditional methods, which existed before the rise of the internet, are still accessible, though inferior in speed and efficiency. For example, you could apply with a paper application, answering the questionnaire by hand, then mailing or faxing in the finished form. You could also answer the questions with a live representative, in a kind of phone interview. These methods aren’t horrible, but they do take time; instead of getting your tax ID in an hour via email, you’ll wait 4 to 6 weeks to receive your tax ID by traditional mail.
If you’re not sure whether you need a tax ID number for your business, it’s fairly simple to make a determination. In most circumstances, the simple phrase "tax ID" refers to your federal tax ID number. This number is given to businesses by the federal government when they register with the government; it’s a unique, 9-digit number meant to identify the business and manage things like taxes. It’s also sometimes referred to as an employer identification number, or EIN for short.
You’ll need one of these for several different reasons. For example, all businesses with multiple members will need one, and you’ll need one if you’re hiring employees. You’ll also need one for most financial applications, like if you’re trying to get a business loan, a business bank account, or an open line of credit. You’ll require a federal tax ID number to get a business license or permit as well. Even if you don’t strictly need one, it’s still good to have one for use on paperwork.
Your federal tax ID number is just one tax ID number your North Carolina business may need. Like most states, North Carolina also has a state-level tax ID number, given by the state government. This, too, is a unique identifying number, but it’s used for different purposes.
For example, you’ll need a North Carolina state tax ID number if you’re going to hire employees in the state of North Carolina. You’ll also need one if you’re going to sell taxable goods and services in the state of North Carolina, or if you’re going to owe excise taxes, which apply to alcohol, tobacco, gasoline, and some other types of regulated goods.
Most North Carolina businesses will need both a federal-level and a state-level tax ID number. If you need a state tax ID number, the best application method is online, much like with your federal tax ID number. It’s faster, more accessible, and more convenient.
Your North Carolina state tax ID number is similar to, but distinct from your federal tax ID number. It uniquely identifies your business and registers it with the state government of North Carolina. You’ll need one if you’re hiring employees in the state, selling taxable goods and services, or if you’ll owe excise taxes.
Before you can apply for a North Carolina state tax ID number, you’ll need to get a federal tax ID number. If you want to get this as quickly as possible, use the online application; you can almost always get it in less than an hour this way. Once you have it, you can apply for your state tax ID number using a similar assortment of different methods. However, the online application is much more convenient. You can finish the application in minutes, then receive your state tax ID in 4 to 6 weeks.