A sole proprietorship may NOT be required to obtain a tax ID number (EIN) if the owner chooses to use their own Social Security Number for tax purposes. However, if the sole proprietor has employees or meets certain other criteria, obtaining an EIN would be necessary. In contrast, limited liability companies (LLCs), partnerships, and corporations are typically required to obtain an EIN regardless of whether they have employees.
Arvilla wonders if she needs to apply for a tax identification (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 (EIN) or tax ID number. What type of business
ownership may NOT be required to obtain a tax ID number?
(1 point)
Limited liability company
○ Ssole proprietorship
○ Partnership
○ Corporation
1 answer