Every business is responsible for federal and state income taxes. If your business is a sole proprietorship, partnership, S corporation, or limited liability corporation (LLC), pre-tax income is taxed by reporting it on your individual return. If your business is a regular corporation, it will be subject to corporate income taxes. Different report forms are required for different types of organizations. Also keep in mind tax ID number is not required if you operate a sole proprietorship or an LLC with no employees, in which case you would simply use your own Social Security Number as a tax ID. But you must obtain an EIN if you are a sole proprietor who files pension or excise tax returns.

All federal tax forms may be obtained from:

Internal Revenue Service
320 Federal Place
Greensboro, NC 27401
www.irs.gov

Forms & Publications  - (800) 829-3676
Business Tax Questions - (800) 829-4933
Individual Tax Questions - (800) 829-1040
Tele-Tax - (800) 829-4477

Income Taxes
Call and ask for a “Getting Started” package for the particular type of business organization you are starting. You will receive a form SS-4 which you should file to obtain a federal identification number, commonly called employee identification number. State tax forms and requirements may be obtained by calling the NC Department of Revenue at (877) 252-3052.

You can obtain your state identification number by calling (877) 252-3052. A state identification number is required only if employees are to be hired. Otherwise, send quarterly payment with tax form NC-40. Note that filing estimated federal and state income taxes during the taxable year may prevent penalties from being assessed.

Payroll Taxes

Employee:
There are several types of payroll taxes. As an employer, you must withhold taxes on behalf of your employees. These taxes are collected by you and are employee contributions. They include the following:
• Federal income tax
• State income tax
• Social Security (FICA) tax (employee portion)

Employees must complete forms US W-4 and NC W-4 before you can determine the amount to withhold for federal and state income taxes from their salaries (form 8109). Social Security is determined by a legislated percentage which may be obtained through the Internal Revenue Service publications.

Employer:

The second type of payroll taxes involves your expense as an employer. These are taxes that you, the employer, pay and include the following:
• Social Security (FICA) tax (employer portion)
• Federal Unemployment Tax (FUTA) – form 508
• State Unemployment Tax (SUTA) – Unemployment Acct# (form NCU1-101/625)

The IRS “Getting Started” package will include information on submitting your portion of FICA and federal unemployment tax. Each new business should contact the North Carolina Department of Commerce’s Division of Employment Security at the address for information on unemployment taxes:

Division of Employment Security
700 Wade Avenue Raleigh, NC 27605
(888) 737-0259

Sales Tax, Retail/Wholesale Sales:

All retail operators must collect sales tax. To find out what to remit and how to avoid tax on wholesale purchases, contact:

North Carolina Department of Revenue
501 North Wilmington Street
PO Box 25000
Raleigh, NC 27640-0640
(877) 252-3052
www.dor.state.nc.us

Wholesalers:

If your business is that of distribution and you do not sell to the end-user or consumer, you may use your retail sales tax number or merchant’s certificate of registration.

Other State Taxes:

North Carolina Department of Revenue
501 North Wilmington Street
PO Box 25000
Raleigh, NC 27640-0640
(877) 252-3052