Arvilla wonders if she needs to apply for a tax ID number as a freelance writing consultant. She took the steps to identify an available business name and then registered it in her state. Arvilla has not yet determined if she will use her own social security number or apply online for a free employer identification number or tax ID number. What type of business ownership may not be required to obtain a tax ID number?

Question

Arvilla wonders if she needs to apply for a tax ID number as a freelance writing consultant. She took the steps to identify an available business name and then registered it in her state. Arvilla has not yet determined if she will use her own social security number or apply online for a free employer identification number or tax ID number. What type of business ownership may not be required to obtain a tax ID number?
A. limited liability company 
B. sole proprietorship 
C. partnership 
D. corporation

GPT-4o mini · Answer

B. sole proprietorship

A sole proprietorship typically does not require a separate tax ID number, as the owner's Social Security number can be used for tax purposes. In contrast, other forms of business ownership such as limited liability companies (LLCs), partnerships, and corporations generally require their own tax ID numbers.