What is a Federal Tax ID Number (EIN)?
A federal tax ID number, also known as an Employer Identification Number (EIN), is a nine-digit number used to identify your company with the IRS.
Benefits of Obtaining an EIN
- Free Service: Applying for an EIN is a free service offered by the IRS.
- Ease of Application: You can apply for an EIN online, which is the easiest and most common way.
Importance of EIN for Your Business
- An EIN identifies your business for tax purposes, like an SSN for an individual.
- You must file taxes every year using your EIN.
Obtaining an EIN in North Carolina
- The EIN will never expire for your business in North Carolina.
- It is free to obtain an EIN in North Carolina since it is a federal number.
- Once you receive your EIN via email, your business can get going.
Importance of EIN and North Carolina State Tax ID Number
- You might need both a federal EIN and a North Carolina state tax ID number for your business.
- The EIN registers your business federally, while the North Carolina tax ID number is used for state tax forms.
Key Steps to Obtain an EIN in North Carolina
- Application Process: Apply online through the IRS website.
- Quick and Easy: Takes just 5 minutes and get EIN instantly.
- Use Cases: Required to hire employees, open business bank accounts, file taxes.