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Business Taxes

Tax identification numbers are issued by the U.S. Internal Revenue Service (IRS) and by the State of North Carolina. They are used to administer tax laws. Be aware that your business may be assigned any combination of these numbers:

  • Social Security Number: May be used by sole proprietors for their business. Sole proprietors may also elect to use an EIN (see below) to help protect the privacy of their social security number.
  • Employer Identification Number, also known as EIN or Federal Tax Identification Number, is used to identify businesses, as well as estates and trusts.
  • NC Secretary of State Identification Number, also known as SOSID, is an identification number issued by the N.C. Secretary of State to business and corporate entities operating within North Carolina. It is not issued to sole proprietorships or general partnerships. Businesses and corporations with an SOSID will need to use it to complete certain forms for the N.C. Department of Revenue, but the SOSID is not used to file tax returns.
  • The N.C. Department of Revenue may also issue identifying numbers to a business, including an Income Tax Withholding, Sales and Use Tax or Privilege License.
1. Register to Pay Sales and Use Taxes and Employee Withholding

1. Register to Pay Sales and Use Taxes and Employee Withholding

Register your business here to pay state taxes for sales tax, use tax, and employee withholding, and/or machinery and equipment taxes. 

2. State Income Taxes

2. State Income Taxes

Unlike federal income taxes, no pre-registration is required for businesses to pay state income taxes.

  • Sole proprietors file and pay income tax using their social security number.
  • Partnerships file and pay income tax using their federal identification number.
  • Corporations file and pay income tax using their federal identification number.
  • Limited Liability Companies (LLCs) are taxed either as a partnership or a corporation, depending upon whether the members elected to be taxed as a corporation.
3. Federal Taxes

3. Federal Taxes

The IRS requires that every employer who pays wages to one or more employees file an application for an Employer Identification Number or EIN.

4. County Property Taxes

4. County Property Taxes

As a business owner, you are responsible for listing your business personal property with the County Tax Assessor's Office. You must also provide the assessor with information concerning any real property improvements such as the addition of a new structure.

5. Comprehensive List of State Business Taxes

5. Comprehensive List of State Business Taxes

Visit the NC Department of Revenue for a list of the major state business taxes.