How to Obtain an EIN in North Carolina | A Comprehensive Guide

Obtain an EIN in North Carolina

In starting an LLC in North Carolina, it is crucial to understand the importance of an Employer Identification Number (EIN) and how it impacts your business operations. An EIN is a unique nine-digit number the Internal Revenue Service (IRS) assigns to businesses operating in the United States for identification purposes. This number is essential for running a business, such as filing taxes, opening bank accounts, and hiring employees.

This article will explore the complete guide to obtaining an EIN in North Carolina and the responsibilities and requirements associated with having an EIN.

Webinarcare Editorial Team will help you understand the process of obtaining an EIN. You must be guided by all the factors gathered in this article.

EIN Definition and Purpose

To form an LLC, an EIN is necessary for your business. An Employer Identification Number (EIN) is a federal tax identification number used by the Internal Revenue Service (IRS) to identify businesses in the United States. It is similar to a Social Security Number (SSN) for individuals but is specifically designed for businesses. The main purpose of an EIN is to help the IRS track and administer taxes for companies.

In North Carolina, businesses are required to have an EIN if they meet any of the following criteria:

  • Have employees
  • Operate as a Partnership or Corporation in North Carolina
  • File tax returns for employment, excise, or Alcohol, Tobacco, and Firearms (ATF) taxes
  • Withhold taxes on income, other than wages, paid to a non-resident alien
  • Have a Keogh plan (a tax-deferred pension plan for self-employed individuals or unincorporated businesses)
  • Are involved with trusts, estates, real estate mortgage investment conduits, non-profit organizations, farmers’ cooperatives, or plan administrators

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How to Obtain an EIN in North Carolina

Obtaining an EIN in North Carolina is a straightforward process; several methods are available to apply for one. However, if you want to be at ease with the process you can hire an LLC Services in North Carolina, with add-ons of obtaining an EIN.

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Online Application Process

The easiest and fastest way to obtain an EIN is by applying online through the IRS website. The online application is available for businesses in North Carolina and the rest of the United States.

irs

To apply for an EIN online, follow these steps:

  1. Visit the IRS EIN Assistant webpage.
  2. Click “Apply Online Now” and follow the prompts to complete the application.
  3. Provide the necessary information, such as your legal name, trade name (if applicable), business address, and the responsible party’s Social Security Number or Individual Taxpayer Identification Number.
  4. Select the appropriate legal structure for your business (e.g., sole proprietorship, general partnership, corporation, etc.).
  5. Provide additional information as required, such as the number of employees, the reason for applying, and the primary business activity.
  6. Review and submit your application.

Upon successful completion of the application, you will receive your EIN immediately. Save or print a copy of the confirmation notice for your records.

Other Application Methods

If you prefer not to apply online or are unable to access the online application, you can also obtain an EIN through the following methods:

  • Fax: Complete Form SS-4 (Application for Employer Identification Number) and fax it to the appropriate fax number listed on the IRS website. You should receive your EIN within four business days.
  • Mail: Complete Form SS-4 and mail it to the appropriate address on the IRS website. The processing time for mailed applications is approximately four weeks.
  • Telephone: International applicants can apply for an EIN by calling the IRS at 267-941-1099 (not a toll-free number) from 6:00 a.m. to 11:00 p.m. Eastern Time, Monday through Friday.

After you have your EIN number, you can benefit in several ways. It will give your North Carolina LLC the final advantage necessary to operate fully without legal or judicial issues.

If you have a Registered Agent, he can file an EIN for your business. Also, if you are planning to file for an LLC in North Carolina, your Registered Agent should file for the Articles of Organization in North Carolina.

Uses of EIN in North Carolina

An EIN must run a business in North Carolina. Some of the primary uses for an EIN include:

Opening a Business Bank Account

Banks typically require an EIN to open a business bank account, which is essential for separating your personal and business finances. With a business bank account, you can accept payments, deposit funds, and manage your company’s finances more efficiently.

If you are planning a bank for your North Carolina business, you can check out the Best Banks in North Carolina, which offer the best combination of fees, services, and convenience for your business needs.

Filing State and Federal Taxes

Businesses in North Carolina must file taxes with both the state and federal governments, and an EIN is necessary to report and pay these taxes. Your EIN is used on various tax forms, such as income tax returns, employment tax returns, and excise tax returns which you can pay in North Carolina Department of Revenue.

Payroll and Employee Tax Reporting

If your business has employees, you will need an EIN to report wages and other compensation paid to your workers. Additionally, an EIN is required for withholding and remitting federal income and payroll taxes on your employees’ behalf.

If you hire an employee for your business, you must request that your employees complete the following forms:

  • Employment Eligibility Form
  • Federal Tax Withholding Form
  • W-4 Form
  • Workers Compensation Claim Form
  • Disability Self-Identification Form
  • U.S. Citizenship and Immigration Services Form

Applying for Business Licenses and Permits

An EIN is often required when applying for business licenses and permits in North Carolina. These licenses and permits may be necessary for various aspects of your business operations, such as zoning approval, health permits, or sales tax registration.

In North Carolina, business license fee costs around the range of $50 – $300. You can check out North Carolina Business Licenses to learn more about licenses and permits.

Establishing Credit and Securing Loans

An EIN can help your business establish credit, as it serves as an identifier for your company in the eyes of financial institutions. Additionally, lenders may require an EIN when applying for business loans or lines of credit.

Responsibilities and Requirements for EIN Holders in North Carolina

As an EIN holder in North Carolina, you are responsible for several tasks related to maintaining and managing your EIN. Some of these responsibilities and requirements include:

Updating the IRS on Changes to Business Information

If your business undergoes significant changes, such as a change in address, legal structure, or a responsible party, you must inform the IRS by filing the appropriate forms. This ensures the IRS has accurate and up-to-date information about your business and can properly administer taxes.

update my information

You can go to the Update My Information website of the Internal Revenue Service.

Required Tax Filings and Payments

With an EIN, your business is responsible for filing various tax returns and making tax payments to federal and state governments. Be informed about the specific tax obligations for your business type and industry in North Carolina.

To keep your business in good standing in North Carolina, you must file an Annual Report with the North Carolina Secretary of State. The annual report provides updated information about your LLC, such as changes in address, members, or Registered Agent.

Record-Keeping Requirements

Proper record-keeping is essential for businesses with an EIN, as it helps ensure accurate tax reporting and compliance with laws and regulations. Maintain records of your company’s income, expenses, and other financial transactions to facilitate accurate tax filing and minimize potential issues with the IRS.

Establish a reliable accounting system to track income, expenses, and tax obligations. You can manage your finances using spreadsheets, accounting software, or hiring a professional accountant.

Closing an EIN Account

Suppose your business ceases operations or no longer requires an EIN. In that case, you must notify the IRS by submitting a letter containing your complete legal name, EIN, business address, and the reason for closing the account. This allows the IRS to update its records and prevent future tax-related issues.

cancel EIN

If you have a copy of the EIN Assignment Notice that was issued when your EIN was assigned, include that when you write it to the IRS with the below mailing address:

  • Internal Revenue Service MS 6055 Kansas City, MO 64108
  • Internal Revenue Service MS 6273 Ogden, UT 84201

Or, you can check out Canceling an EIN via the IRS for further information.

Common Issues and Solutions for EIN in North Carolina

Business owners in North Carolina may encounter issues related to their EIN, such as losing or misplacing the number, incorrect information on the EIN application, or changes in business structure or ownership. Here are some solutions to common EIN-related problems:

  • Lost or Misplaced EIN: If you lose or misplace your EIN, you can contact the IRS by calling their Business & Specialty Tax Line at 1-800-829-4933. The IRS representative can provide you with your EIN after verifying your identity.
  • Incorrect Information on EIN Application: Suppose you discover an error on your EIN application, such as an incorrect business name or address. In that case, you can correct the information by submitting a letter to the IRS detailing the changes. Be sure to include your EIN, the incorrect information, and the correct information in your letter.
  • Change in Business Structure or Ownership: If your business undergoes a significant legal structure or ownership change, you may need to obtain a new EIN. Consult the IRS guidelines to determine if a new EIN is necessary.
  • Dealing with Identity Theft or Fraud: If you suspect your EIN has been compromised or used fraudulently, immediately report the issue to the IRS. The IRS can guide you through the steps to secure your EIN and protect your business from potential tax-related issues.

State-Specific EIN Information and Resources

To further assist businesses in North Carolina, here are some state-specific resources and information related to EINs and taxation:

  • State Tax Agency Information: The North Carolina state tax agency can provide information on state tax requirements, forms, and filing deadlines. Be sure to familiarize yourself with the state tax obligations for your business type and industry.
  • Business Registration Requirements: In addition to obtaining an EIN, businesses in North Carolina must also register with the appropriate state agencies. This may include registering your business name, obtaining necessary licenses and permits, and registering for state taxes.
  • Employer Tax Obligations and Filings: Employers in North Carolina must comply with various state tax obligations, such as withholding state income tax from employee wages and reporting these withholdings to North Carolina Department of Revenue. Research your business’s specific employer tax requirements in North Carolina.
  • Local Resources and Assistance for Businesses in North Carolina: Many local organizations and government agencies in North Carolina offer resources and assistance for small business owners. These resources may include business counseling, training, and financial assistance programs.

Do I Need to Apply for an EIN If I Also Have Business In Other States?

Yes, if you are operating a business with employees, have a corporation or partnership, or are required to file employment, excise, or alcohol, tobacco, and firearms tax returns, you will need an EIN (Employer Identification Number). If your business operates in multiple states, you only need one EIN for federal tax purposes. However, you may need to register for state-specific tax identification numbers in each state where you conduct business. Check with the North Carolina Department of Revenue to determine their requirements.

FAQs

How do I obtain an EIN in North Carolina?
You can obtain an EIN in North Carolina by filing Form SS-4 online, by fax, or by mail with the IRS.
Who needs an EIN in North Carolina?
Anyone who operates a business in North Carolina, employs workers, or files certain tax forms, among other reasons, may need an EIN.
Is there a fee to obtain an EIN in North Carolina?
No, obtaining an EIN is free.
Can I obtain an EIN in North Carolina online?
Yes, you can obtain an EIN in North Carolina online through the IRS website.
Is it necessary to have a Social Security number to obtain an EIN in North Carolina?
No, you do not need a Social Security number to obtain an EIN in North Carolina.
How long does it take to obtain an EIN in North Carolina?
It typically takes about four weeks to receive an EIN in North Carolina, although you may be able to obtain one more quickly by applying online.
Can I obtain an EIN for a North Carolina LLC?
Yes, you can obtain an EIN for a North Carolina LLC.
What is the purpose of an EIN in North Carolina?
An EIN is used by the IRS to identify businesses and for tax purposes.
Can I use my North Carolina EIN in other states?
Yes, you can use your North Carolina EIN to identify your business in other states.
Do sole proprietors in North Carolina need an EIN?
Sole proprietors are not required to have an EIN, but they may choose to obtain one.
Can I cancel an EIN in North Carolina?
You can only cancel an EIN if it was obtained in error, such as by submitting a duplicate application.
Does a nonprofit organization in North Carolina need an EIN?
Yes, nonprofit organizations in North Carolina need an EIN.
Can I change the name on my North Carolina EIN?
Yes, you can contact the IRS to change the name on your North Carolina EIN.
Are there any businesses in North Carolina that are exempt from needing an EIN?
No, there are no businesses in North Carolina that are exempt from needing an EIN.
Do real estate agents in North Carolina need an EIN?
Real estate agents in North Carolina are not required to have an EIN, but they may choose to obtain one.
Can I fax my North Carolina EIN application to the IRS?
Yes, you can fax your North Carolina EIN application to the IRS.
Will I receive a physical EIN form in North Carolina?
No, you will not receive a physical EIN form in North Carolina as the EIN is issued electronically.
Can I apply for an EIN in North Carolina over the phone?
No, you cannot apply for an EIN in North Carolina over the phone.
As a foreign person without a SSN, can I obtain an EIN in North Carolina?
Yes, foreign persons without a SSN can obtain an EIN in North Carolina.
Can I use my North Carolina EIN for a trust?
Yes, you can use your North Carolina EIN for a trust.
How do I verify my North Carolina EIN number?
You can verify your North Carolina EIN number through the IRS website.
Can I obtain an EIN for a North Carolina partnership?
Yes, you can obtain an EIN for a North Carolina partnership.
Can I apply for an EIN in North Carolina if I am not a citizen or permanent resident?
Yes, you can apply for an EIN in North Carolina even if you are not a citizen or permanent resident.
Can a business have more than one EIN in North Carolina?
No, a business should only have one EIN.
How do I apply for a new EIN in North Carolina if my business has changed owners?
If your business has changed owners, you will need to apply for a new EIN.
Can I obtain an EIN if I have been assigned a North Carolina Secretary of State identification number?
Yes, you can obtain an EIN if you have been assigned a North Carolina Secretary of State identification number.
Can I apply for an EIN for a North Carolina nonprofit organization by mail?
Yes, you can apply for an EIN for a North Carolina nonprofit organization by mail.
Is it possible to obtain an EIN in North Carolina for a deceased person’s estate?
Yes, you can obtain an EIN in North Carolina for a deceased person’s estate.
How do I apply for an EIN in North Carolina?
You can apply for an EIN in North Carolina online, by mail, fax, or phone.
How much does it cost to get an EIN in North Carolina?
Getting an EIN in North Carolina is free.
How long does it take to get an EIN in North Carolina?
If you apply online for an EIN in North Carolina, you can get it immediately.
Can I get an EIN in North Carolina for my sole proprietorship?
Yes, you can.
Can I get an EIN in North Carolina for my LLC?
Yes, you should get one for your LLC to open a business bank account.
Can I apply for an EIN in North Carolina for a trust?
Yes, you can.
Can I apply for an EIN in North Carolina for a non-profit organization?
Yes, you can.
Do I need to have a physical address in North Carolina to get an EIN?
No, you can use a mailing address.
Can I apply for an EIN in North Carolina if I am not a US citizen?
Yes, you can.
How do I update my EIN if I change my address or phone number?
You can call the EIN hotline or send a letter by mail.
Can I cancel my EIN if I no longer need it?
Yes, you can call the IRS to cancel your EIN.
Do I need an EIN if I am a freelance writer in North Carolina?
No, you don’t need an EIN as a sole proprietor.
Can I use my personal social security number instead of obtaining an EIN?
Yes, you can but it is recommended to have a separate EIN.
Will my North Carolina state tax ID be the same as my EIN?
No, they are separate IDs for state and federal tax purposes.
Can I apply for an EIN for my business in North Carolina if I am a resident of another state?
Yes, you can apply for an EIN regardless of where you reside.
How can I check the status of my EIN application in North Carolina?
You can call the IRS EIN hotline to check the status.
Do I need an EIN when hiring employees for my North Carolina business?
Yes, you need an EIN to withhold taxes from your employees’ paychecks.
Can I apply for an EIN if I am a partnership in North Carolina?
Yes, you should obtain an EIN for a partnership.
Can I obtain an EIN by visiting an IRS office in North Carolina?
No, you cannot; they only accept applications online, by mail, fax or phone.
What do I do if I lost my North Carolina EIN confirmation letter?
You can request a new one by calling IRS EIN hotline.
How many EINs do I need for my business in North Carolina?
You only need one EIN per business, unless there have been significant changes like buying an existing business.
Who can I speak to if I have questions about getting an EIN in North Carolina?
You can contact the IRS EIN hotline or seek an expert’s advice.
Can I change the responsible party for my North Carolina business’ EIN?
Yes, you can, by submitting a new Form SS-4 to the IRS.
Can I apply for an EIN for my estate in North Carolina?
Yes, you can apply for an EIN for an estate.
Can I apply for an EIN as a foreign (non-US) partnership doing business in North Carolina?
Yes, you can, you’ll need to have a US tax return, and border holding by the Government.
Do I need an EIN for my nonprofit with no employees in North Carolina?
Not necessarily, it depends on various circumstances if filing a 990 series return or some other requirements need the EIN.
Is an EIN required to get a business license in North Carolina?
Not typically, but some officials for LLCs might require an EIN as proof of an authentic business identity.
Will I need an EIN for my North Carolina business to file taxes?
Yes, you’ll need an EIN for your North Carolina business as source guidelines mandates to register before filing the return or return being rejected.
Do I have to provide my Social Security number for a North Carolina EIN?
Primarily, you can opt for either or both identification proves when applying for an EIN.
What happens if I don’t obtain an EIN for my North Carolina business?
In an outcome, you will not face any considerable legal consequence or encounter significant enforcement from state, but it is rare.

Also Read

How to Save Money While Getting Ein for North Carolina LLC

One of the key steps in getting an LLC for your business is obtaining an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). Although this may seem like a daunting task, there are several ways in which you can save money while obtaining an EIN for your North Carolina LLC.

First and foremost, it is important to explore all of your options when it comes to obtaining an EIN for your North Carolina LLC. While you may be inclined to hire a professional service to handle this task for you, it is entirely possible to obtain an EIN on your own for free. The IRS offers an online application process that is simple and straightforward, allowing you to obtain your EIN in a matter of minutes without the need for any outside help.

Another way to save money while obtaining an EIN for your North Carolina LLC is to be mindful of any unnecessary services that may be bundled into other packages. Oftentimes, professional services may try to upsell you on additional services that you may not need, resulting in unnecessary expenses. By carefully reviewing the services that are included in any package you choose, you can avoid paying for services that you could easily handle on your own.

Furthermore, timing can also play a critical role in saving money when obtaining an EIN for your North Carolina LLC. The IRS allows you to apply for an EIN as soon as you have formed your LLC, so it is best to act promptly once your business is up and running. By obtaining your EIN early on in the process, you can avoid any rush fees or expedited processing charges that may be incurred if you wait until the last minute.

Finally, networking with other entrepreneurs and seeking advice from fellow business owners in North Carolina can be a valuable resource in saving money while obtaining an EIN for your LLC. By tapping into the knowledge and experiences of others who have gone through the process before, you may uncover valuable tips and tricks that can help you navigate the process more efficiently and cost-effectively.

In conclusion, while obtaining an EIN for your North Carolina LLC may seem like a costly endeavor, there are several ways in which you can save money throughout the process. By exploring all of your options, being mindful of unnecessary services, acting promptly, and seeking advice from others, you can successfully obtain an EIN for your LLC without breaking the bank. With a bit of research and diligence, you can position your North Carolina LLC for success while keeping your expenses to a minimum.

Conclusion

Understanding the importance and uses of an EIN in North Carolina is crucial for the successful operation of your business. By obtaining and maintaining your EIN, you can ensure compliance with federal and state tax laws, establish a strong financial foundation for your company, and access various resources and opportunities for growth. Be sure to utilize the available resources and support for businesses in North Carolina to maximize your chances of success.

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