How to Get a Tax ID Number in North Dakota for a New Business (Indiana Context)

What “Tax ID Number” Means for a New Business

The phrase “tax ID number” can refer to different identifiers depending on what you need to do. For most new businesses, it usually means one or more of the following:

• Federal EIN (Employer Identification Number): Issued by the IRS and used for federal tax filings, payroll, business banking, and many licensing needs.
• State employer withholding account: Used to remit state income tax withheld from employee wages.
• State sales tax permit / registered retail merchant certificate: Used to collect and remit sales tax if you sell taxable goods or services.
• Other state program accounts: Such as unemployment insurance or industry-specific tax registrations.

North Dakota vs. Indiana: Get the Right Tax IDs for Where You Operate

Your title references North Dakota, but your state context is Indiana. The correct approach is to register in the state(s) where you have business activity (such as an office, employees, inventory, or regular in-state sales). Many new businesses need:

• An EIN for the business (federal, used in every state)
• Indiana registrations if you operate in Indiana (sales tax, withholding, unemployment as applicable)
• North Dakota registrations only if you also operate in North Dakota (for example, employees, a location, or taxable sales there)

Common “Triggers” That Create a Registration Need

• Hiring employees (payroll withholding and unemployment accounts)
• Selling taxable products/services (sales tax permit)
• Forming an entity that must file separate business tax returns
• Opening a business bank account that requires an EIN
• Working with vendors or platforms that require a tax ID on forms

Step-by-Step: Get a Federal EIN (Tax ID Number) for Your New Business

The EIN is usually the first tax ID a new business obtains because it supports banking, payroll setup, and many state registrations. Plan to have these details ready:

• Legal business name (and DBA if applicable)
• Entity type (sole proprietor, LLC, corporation, partnership, etc.)
• Responsible party name and taxpayer ID
• Business address and mailing address
• Start date and reason for applying (new business, hiring employees, banking, etc.)
• Estimated number of employees (if any)

If you are still deciding between structures and what that means for EIN use, see Corporation EIN – Employer Identification Number for context on how EINs function for corporations.

Indiana Business Tax IDs You May Need After Getting an EIN

If your operations are in Indiana, you may need additional registrations beyond the EIN:

• Sales tax registration if you sell taxable goods/services to Indiana customers
• Withholding tax account if you have employees working in Indiana
• Unemployment insurance account if you have employees (often required alongside withholding)

Sales Tax: When a Permit Is Required

Generally, you should register before making taxable sales. Typical examples include:

• Retail sales of tangible products
• Certain prepared foods and beverages
• Some services when bundled with taxable goods

Employer Taxes: When You Need Withholding and Unemployment Accounts

• Hiring W-2 employees usually triggers withholding and unemployment registration
• Paying contractors (1099) typically does not require withholding registration, but you still may need an EIN and proper reporting processes

Quick Reference Table (Indiana)

North Dakota Tax IDs: When You Need Them (If You Expand or Operate There)

If you later expand into North Dakota, you may need North Dakota-specific registrations in addition to your EIN. Common scenarios include:

• North Dakota sales tax permit if you make taxable sales with a North Dakota registration requirement
• North Dakota employer accounts if you hire employees working in North Dakota

Keep your registration details consistent across systems (legal name, addresses, entity type, and EIN). If you want an overview of what information is typically requested during tax identification setup, review TAX IDENTIFICATION REGISTRATION.

Common Mistakes to Avoid When Getting a Tax ID Number

• Applying under the wrong entity type (for example, selecting sole proprietor when the business is an LLC taxed as a corporation)
• Using inconsistent legal names across EIN, bank, and state registrations
• Registering in the wrong state (register where you operate, not just where you live)
• Waiting until after you start selling to register for sales tax where a permit is required
• Mixing personal and business tax records (separate bank accounts and bookkeeping)

FAQ: Getting a Tax ID Number for a New Business (North Dakota Title, Indiana Context)

1) Is a “Tax ID number” the same as an EIN?

Often, yes. Many people use “tax ID” to mean an EIN. However, “tax ID” can also mean state tax accounts such as sales tax permits or employer withholding accounts.

2) If my business is in Indiana, do I need a North Dakota tax ID?

Not unless you have business activity in North Dakota that requires registration (such as employees, a physical location, or taxable sales that create a North Dakota registration obligation).

3) Can a sole proprietor in Indiana get an EIN without employees?

Yes. Many sole proprietors obtain an EIN for business banking, invoicing, or to avoid using a Social Security number on certain forms.

4) Do I need a separate tax ID for sales tax in Indiana?

Yes. Sales tax collection typically requires a state sales tax registration (often called a retail merchant certificate or sales tax permit), which is separate from your EIN.

5) When should I register for Indiana withholding tax?

Register before you begin paying wages to W-2 employees working in Indiana so you can withhold and remit state income tax properly from the first payroll.

6) If I form an LLC, do I automatically receive a tax ID number?

No. Forming an LLC creates the legal entity at the state level, but you generally must apply separately for an EIN (and any needed state tax accounts).

7) Can I use one EIN for multiple states?

Yes. The EIN is federal and stays the same. If you operate in multiple states, you typically keep the same EIN and add state registrations in each state where required.

8) What information should match exactly across my EIN and state registrations?

Your legal business name, entity type, and primary address should be consistent. If you use a DBA, keep it clearly identified as a trade name rather than the legal name.

9) Do online marketplaces replace the need for a sales tax permit?

Sometimes marketplaces collect and remit sales tax for certain transactions, but that does not always eliminate your obligation to register or file. Many businesses still need a sales tax account based on their activities.

10) What’s the fastest way to avoid delays when applying for tax IDs?

Decide your entity type first, use a single standardized legal name and address format, and gather responsible party details, start date, and business activity descriptions before you begin any applications.

Explore More Topics

• TAX IDENTIFICATION REGISTRATION
• Corporation EIN – Employer Identification Number
• 2022 Sales Tax Form Request
• Tax ID registration details for new businesses
• How an EIN supports banking and payroll setup