A tax ID number in North Carolina is similar to an EIN where it stands for employer identification number. It is a number issued to a specific business by the IRS and not by this state government. You may want to consider the EIN as a social security number; however, it is mostly used for tax purposes. You also need to know that there should be two tax ID numbers when in this state. So you may need to apply for a North Carolina tax ID with the Department of Revenue.
Even if FEIN implies to have an employer, it isn’t necessary for the business to have employees. The tax ID number is simply for identification purposes. The EIN will make the business open business bank accounts, open business line of credit or credit cards, handle payroll and file taxes.
How to Apply for EIN?
If you check out the IRS website, you will find that it’s so easy to apply for a North Carolina tax ID number. You need to wait a little further to have this application approved. You can apply online, fax or through mail. The process for obtaining an EIN is the same for all business entities and you will need to navigate first the IRS website and find the link for EIN application. Just follow instructions and be ready with your personal details like your name, business name and address, and so on to fill up the online form.
You must also be aware that it takes around four days to apply through fax and four weeks for mailing up. Ensure that you already have a social security number before you apply for tax ID number. For non-US citizens, you need to obtain the ITIN before applying an EIN.
Another step to consider once you have the EIN is to apply for a North Carolina tax ID, which you can do with the North Carolina Department of Revenue. Ensure that you have filed all the necessary documents with the Office of the State Secretary so you are given a registration number for your NC tax ID.