To get a tax ID number in NC, you generally need two: a federal Employer Identification Number (EIN) from the IRS, and a state tax account number from the North Carolina Department of Revenue (NCDOR). Both applications are free. The EIN comes back instantly through the IRS online application, and the state number is usually issued on the spot when you register through the NCDOR eBusiness Center.
Start With Your Federal EIN
Federal law requires businesses to include an identifying number on tax filings, and for most that number is a nine-digit EIN.1Office of the Law Revision Counsel. 26 USC 6109 – Identifying Numbers Get this first, because North Carolina’s registration application asks for it.
Apply through the IRS website. You will answer questions about your entity type and provide the Social Security Number or ITIN of the responsible party. If approved, the EIN appears immediately on screen. The application takes a few minutes and costs nothing. Two limits to know: only one EIN per responsible party per day, and you have to finish in a single session because the form cannot be saved and resumed.2Internal Revenue Service. Get an Employer Identification Number
A sole proprietor with no employees and no excise-tax obligations can sometimes use a Social Security Number instead of an EIN. You do need an EIN if you hire employees, operate as a corporation or partnership, or file certain federal excise-tax returns. Because the North Carolina application generally requires an EIN, most owners get one either way.
Decide Which North Carolina Tax Accounts You Need
The state tax ID is really an account number tied to a specific tax type, so first figure out which accounts apply to you.
If you sell taxable goods or services, register for a Sales and Use Tax account. The state’s general rate is 4.75 percent, with county rates added on top,3North Carolina Department of Revenue. Current Sales and Use Tax Rates and the tax is imposed on retailers as a privilege of doing business in the state.4North Carolina General Assembly. North Carolina General Statutes 105-164.4 – Tax Imposed on Retailers
If you have employees, register for a Withholding Tax account. Every North Carolina employer must deduct state income tax from wages each pay period and hold those funds in trust until they are remitted.5North Carolina General Assembly. North Carolina General Statutes 105-163.2 – Employers Must Withhold Taxes You can register for sales/use and withholding on the same NCDOR application.
Certain industries — motor fuels, dry-cleaning solvents, scrap tires — have their own registration requirements on top of the common ones.
If Your Business Is Outside North Carolina
Remote sellers hit the registration requirement based on volume of sales into the state. As of July 1, 2024, you must register if your gross sales sourced to North Carolina exceed $100,000 in either the previous or current calendar year. The older transaction-count trigger has been repealed, so the threshold is a dollar figure only.6North Carolina Department of Revenue. SD-24-1 – Remote Sales – Repeal of Transaction Thresholds The same $100,000 threshold applies to marketplace facilitators, counting all sales made on behalf of their marketplace sellers. If a facilitator is already collecting tax on your sales, check whether that satisfies the requirement or whether you still need to register separately.
What to Have Ready Before You Apply
Pull these together before you open the application:
- Your federal EIN.
- Your legal business name, exactly as it appears on your formation documents.
- Physical and mailing addresses for the business.
- Social Security Number or ITIN for every responsible owner, partner, or officer.
- Your Secretary of State ID, if you are a North Carolina corporation or LLC.
- A six-digit NAICS code describing your primary business activity.
The application also asks you to estimate expected tax liability. NCDOR uses that estimate to assign a filing frequency — quarterly for consistent liability under $100 per month, monthly at $100 up to $20,000, and monthly with prepayment at $20,000 or more. The department can adjust your frequency later based on your actual filings.7North Carolina Department of Revenue. Filing Frequency and Due Dates
Submit the Application
Online Through the NCDOR eBusiness Center
Online registration is the fastest route. The eBusiness Center walks you through interview screens, and for most applicants the system issues the account ID the moment you submit. Save or print the confirmation page, which shows your new account number and business name.8North Carolina Department of Revenue. Business Registration
If the system cannot finish the registration at submission, you get a tracking number instead and your account ID is issued within ten business days and mailed to you. Online registration does not cover every tax type; some specialized accounts still require a paper application.
By Mail Using Form NC-BR
To register on paper — or to register for a tax type that is not available online — download Form NC-BR, the Business Registration Application, from the NCDOR site and mail it to:
North Carolina Department of Revenue
PO Box 25000
Raleigh, NC 27640-0640
Paper takes considerably longer. Expect several weeks to receive your account number by mail. Registration is free either way.9North Carolina Department of Revenue. Sales and Use Tax Registration Some third-party sites charge for what NCDOR provides at no cost, so apply directly through the department.
After You Get Your Number
NCDOR issues a certificate of registration for each account you open. State law requires you to display a copy at each place of business,10North Carolina General Assembly. North Carolina General Statutes 105-164.29 – Application for Certificate of Registration and the account number on the certificate is what you will use on every return you file.
A sales and use tax registration also lets you buy inventory tax-free for resale. You give the vendor a certificate of exemption with your name, address, certificate of registration number, the reason for exemption, and your type of business. In person you typically hand over a signed paper certificate or supply the same information electronically; for online or remote purchases the seller must collect and keep that data in a retrievable format.11North Carolina General Assembly. North Carolina General Statutes 105-164.28 – Certificate of Exemption One warning: if you buy something exempt for resale and then use it yourself, you become personally liable for the sales tax that should have been paid on the original purchase.
Closing an Account
When you stop doing business in North Carolina, file Form NC-BN, the Out-of-Business Notification. You can submit it online without mailing anything, and filing it lets NCDOR close your accounts so you are not expected to keep sending returns.12North Carolina Department of Revenue. NC-BN Out-of-Business Notification File any outstanding returns and pay any balances before you close out.
What Happens If You Skip Registration
Operating without the required registrations exposes you to real penalties. The failure-to-file penalty is 5 percent of the net tax due for each month or partial month a return is late, capped at 25 percent. A separate 5 percent late-payment penalty applies to tax not paid by the original due date. Missing a required informational return can cost $50 per day, up to $1,000.13North Carolina Department of Revenue. Penalties and Fees Overview
Interest runs on unpaid tax and penalties from the original due date. If a balance stays unpaid more than 60 days after it becomes collectible, the state tacks on a 20 percent collection assistance fee. And without proper registration, you cannot legally collect sales tax or claim exemptions you would otherwise be entitled to.