The process of getting a Tax ID number in North Carolina
Before getting a tax ID number in North Carolina it's important to know the different between different government issues numbers. A Federal Tax ID number identifies a person or company to the federal government for the purpose of paying taxes. A state Id tax number, is for all business conducted in the specific state. A state employee ID is to identity a person to a particular state for the purpose of paying state taxes. A federal tax ID number is needed when a company has employees or when a person wants to open a business and not necessary use their social security number. A tax ID number is also needed to open a Limited Liability Company also known as an LLC. A Federal Tax ID number is not a sales tax ID number.
A tax ID number is not a business license, nor is it a sales certificate. If you have a small company that you just opened in North Carolina you don't have to have a separate tax ID number, but it's highly recommended by professionals in the field. However if a company has employees, than a a federal tax ID number is required, even if it is only one employee. Many small business owners prefer to have a North Carolina tax ID number for security reasons. With a tax ID number it's not necessary to have an individual's social security number listed in too many different places. A new business owner, will commonly be asked by their clients to put down their tax ID number on all corresponding business paperwork. The form to apply is an SS4 that has to be filled out, and the ID number can be issued over the phone, and or electronically. It's a very easy process.