Key Takeaways

  • An NC tax ID number refers to either a federal Employer Identification Number (EIN) issued by the IRS or a state tax ID issued by the North Carolina Department of Revenue.
  • Businesses need a federal EIN to open bank accounts, file federal taxes, or hire employees. The EIN application can be completed online, by fax, or by mail through the IRS.
  • North Carolina requires businesses to obtain a state tax ID for withholding income taxes, paying state-level taxes, and registering for sales and use tax permits.
  • To apply for a North Carolina state tax ID, a business must first obtain an EIN. Registration is done via the NC-BR form, and corporations must also register with the NC Secretary of State.
  • Additional obligations may include obtaining a sales and use tax permit, unemployment insurance registration, and local business licenses depending on the industry.

What Is a Tax ID Number in NC?

A tax ID number in NC is similar to an EIN. An EIN is an acronym that stands for Employer Identification Number. It is a number issued to a business by the Internal Revenue Service (IRS) and not the State of North Carolina.  An EIN is also called a Federal Tax ID number or Tax ID number (TIN). Think of a TIN exactly like a social security number. An SSN is an identifying number for a person to the IRS. An EIN functions the same way for a business.

Despite what the name implies, having an EIN does not require the business to have employees. It is simply for identification purposes.  It's a nine-digit number, with the first seven digits followed by a hyphen and the final two digits. An EIN allows a business to:

  • Open checking and savings accounts
  • Open business lines of credit or credit cards
  • File taxes
  • Handle payroll

How do I Apply for an EIN?

Getting an EIN is free if you go to the IRS directly. Waiting until your LLC filings are approved first is recommended. Apply by mail, online, or via fax.  

The process for applying for an EIN is virtually the same for any entity. For an LLC the process is as follows. 

  • Navigate to the IRS website and find the EIN application selection, select Start, select the first of the options, and press continue.
  • Choose Individual, select the next page, and confirm that you are an owner, member, or managing member of the LLC.
  • On the next page, you will enter your principal LLC address; this is also where the LLC is physically located, and if you have a mailing address that is different than the principal address, you will enter that as well.
  • Accept the location as listed and follow the rest of the instructions on the screen to finish the process.

Note that applying by fax takes up to four days and mail up to four weeks. U.S. residents need their SSN to apply for a tax ID. Non-U.S. citizens need to apply for and obtain an ITIN prior to applying for an EIN.

Eligibility and Common Reasons to Apply for an EIN

Most businesses in North Carolina will need an EIN, but not all. You must obtain one if you plan to hire employees, operate as a corporation or partnership, or withhold taxes on income paid to non-resident aliens. An EIN is also required if your business files employment, excise, or alcohol/tobacco/firearms tax returns.

Even sole proprietors may choose to apply for an EIN instead of using their Social Security Number for added privacy. EINs are also often required to establish credit, apply for certain licenses, or work with vendors that require federal tax identification.

What Is a North Carolina Tax ID?

North Carolina has a Department of Revenue that issues its own state tax ID number to businesses. It's designed to cover income tax withholding for employees and a state-specific machinery, equipment, and manufacturing use tax.

Why Businesses Need an NC Tax ID

A North Carolina tax ID number is required for businesses that:

  • Hire employees in the state and must withhold income tax.
  • Collect and remit sales or use tax on goods and services.
  • Owe state excise or franchise taxes.
  • Operate in regulated industries that require permits tied to a tax ID.

In short, while the federal EIN identifies a business to the IRS, the NC state tax ID ensures compliance with state-level obligations. Having both helps businesses avoid penalties and ensures lawful operation in North Carolina.

How do I get a North Carolina State Tax ID?

In order to get a North Carolina state tax ID number, your business must have an EIN first. In many cases, businesses will receive a state ID quickly after filing online, though it takes up to 10 business days.

In addition to an EIN, corporations have to be registered with the Secretary of State's Office and have a registration number. For this process, you will need to know or have handy the information for any tax accounts, licenses, or permits. The North Carolina Business Registration form (NC-BR) also must be filled out in ink or online if the process has not been completed already.

Steps to Register for an NC Tax ID

To obtain a North Carolina state tax ID:

  1. Secure a Federal EIN – This is a prerequisite before applying at the state level.
  2. Complete the NC-BR Form – Available online at the North Carolina Department of Revenue website, this form registers your business for various state tax accounts.
  3. Provide Key Information – Including your federal EIN, Secretary of State registration number (for corporations/LLCs), business name, addresses, start date, and type of business activity.
  4. Receive Confirmation – Online filers typically receive a state tax ID within 10 business days. Mail applications may take longer.

This registration links your business to state tax accounts such as sales and use tax, withholding, and other obligations.

Are There Other Requirements for Businesses in North Carolina?

Yes. Businesses must register for and have a sales tax permit if their business has an office or business space in the state, employees, agents, or other representatives, or any other space used by the business in North Carolina on a temporary or permanent basis.

Like a state tax ID and business registration, a sales tax application can be completed online or by mail. Submitting an SSN, FEIN, and the NC Secretary of State Number is a requirement. In addition, the name of the business, address, phone number, start date, and business type are also needed. A responsible person or partner, their name, title, SSN, and address is also required if applicable.

Online filers will receive their sales tax permit right away. A confirmation follows by mail in five business days. Mail filers should expect to receive their ID within 10 business days. Once it is filed, the sales tax permit does not have an expiration or renewal date. In the event that the business moves, the Department of Revenue must be notified by filling out and submitting a change of address form. Otherwise, everything stays as it was originally filed.

Additional Tax and Compliance Requirements

Beyond obtaining an NC tax ID number, businesses may have other compliance duties:

  • Sales and Use Tax Permit – Required if you sell taxable goods or services.
  • Withholding Registration – Employers must withhold state income tax from employees’ wages.
  • Unemployment Insurance – Registration with the NC Division of Employment Security may be required if you employ workers.
  • Industry-Specific Licenses – Certain businesses (e.g., food service, alcohol sales, professional services) need extra permits or certifications tied to their tax ID.
  • Local Requirements – Some counties and municipalities impose their own licensing or registration requirements.

Maintaining good standing with both federal and state agencies ensures smoother operations, minimizes audit risks, and builds trust with financial institutions.

Frequently Asked Questions

  1. Do I need both a federal EIN and an NC tax ID?
    Yes. The EIN identifies your business federally, while the NC tax ID registers you with the state for income withholding, sales, and other state-level taxes.
  2. How long does it take to get an NC tax ID?
    Online applications are usually processed within 10 business days. Mail submissions may take several weeks.
  3. Can a sole proprietor in North Carolina operate without an EIN?
    Yes, but many choose to apply for one to protect their Social Security Number and to meet requirements from banks or vendors.
  4. Is there a fee to apply for an EIN or NC tax ID?
    No. Both federal and state applications are free when filed directly with the IRS and North Carolina Department of Revenue.
  5. What happens if I don’t register for an NC tax ID?
    Operating without proper registration can lead to fines, penalties, and legal issues with state authorities.

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